Sustainable          CORPORATE          sustainability          report 2011
whenweneedto besure  2
24 hoursWe are continually pushingourselves to deliver innovativeservices and solutions thathelp our customers move their ...
Contents06	Summary of performance             37	Professional excellence                 55	Environmental management08	Sum...
total recordable incident rate                                                                                            ...
PEOPLE                                                        Employees                                       100%        ...
ENVIRONMENT                                                 Building energy                                               ...
Summary of commitmentsPROFESSIONAL                   Roll out our revised Code of Integrity and integrity training across ...
This year, our third report is published                                                alongside the annual report and pr...
14:00	   Introduction
We employ over70 000 peopleand operate anetwork of morethan 1 350 officesand laboratoriesaround the world
SGS helps customers to operate in a        Our value lies in how our services                                            m...
Jointstatementfrom theChairman& CEO
Dear Stakeholders,                           global network of laboratories, andThe past year has been an important       ...
Sustainabilityservices at SGSSuccess can only be achieved if weare able to continuously look beyond        We believe ther...
Global                                                                      SGS plays a role in the testing and           ...
Preservation                       partnership with the National Institute                                                ...
pollution, additional cost, or significantlyreduced yields. SGS provides a solutionto this problem through the GPS trackin...
Buildings                    buildings and systems, building energy                                            audits, ene...
Materials                      outreach programmes to establish                                                           ...
Our approach to21:00	corporate sustainability                                 Our approach to corporate sustainability
Corporate sustainability plays an            •	 Embedding a culture of operational                           important rol...
The Group sustainability programme is      Company policies                                    managed by the Corporate Su...
Our stakeholdersAND SUB-CONTRACTORS                                                                                       ...
Stakeholder        Understanding and responding to the        needs of our customers and society is                       ...
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
SGS Corporate Sustainability Report for 2011
Upcoming SlideShare
Loading in …5
×

SGS Corporate Sustainability Report for 2011

2,012
-1

Published on

Read the SGS annual account of our sustainability performance and plans. http://www.sgs.com/~/media/Global/Documents/Technical%20Documents/Reports/Policies/sgs_sustainability_report_en_11.pdf?WT.mc_id=sl030002

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,012
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

SGS Corporate Sustainability Report for 2011

  1. 1. Sustainable CORPORATE sustainability report 2011
  2. 2. whenweneedto besure 2
  3. 3. 24 hoursWe are continually pushingourselves to deliver innovativeservices and solutions thathelp our customers move their a daybusinesses forward. 7 days a week 12 months a year
  4. 4. Contents06 Summary of performance 37 Professional excellence 55 Environmental management08 Summary of commitments 38 Strategic Transformation 57 Global programmes09 Report focus 38 Sustainability e-learning 58 Energy efficiency in buildings13 Who we are 39 Security 59 Green IT13 Why WE need to be sure 39 Innovation teams 59 Sustainable capital investment 40 Compliance and Integrity 60 Green procurement14 Joint statement from the 40 Our performance 60 Green cars Chairman and CEO 40 Progress on 2010 commitments 61 Waste management 41 Looking ahead 61 Progress on 2010 commitments16 Sustainability services at SGS 62 Clean power17 Global economy and trade 43 Our People 62 Water17 Human development 46 Global programmes 62 Environmental compliance18 Preservation of forests 46 Selecting and recruiting talent 62 Carbon disclosure and biodiversity 46 Engaging new talent 63 Our performance18 Energy and power 46 Managing performance18 Agriculture and food production 47 Learning and development 65 Community20 Buildings 49 Succession planning 66 Community management20 Mobility and transport 49 Reward and recognition 68 Core programmes and projects21 Materials and mining 49 Retaining talent 72 Recognition and awards 49 Human rights 72 Looking ahead23 Our approach to corporate 49 Diversity and equal opportunity 72 Progress on 2010 commitments sustainability 49 Environmental behaviour 73 Our performance24 Sustainability vision 49 Employee security24 Governance 49 Employee consultation 76 Report Assurance25 Sustainability management system 50 Our people performance26 Our stakeholders 52 Operational Integrity 78 Closing remarks28 Risk management 53 Our Operational Integrity performance28 Our strategic agenda 53 Progress on 2010 commitments 80 Key terms29 Measuring our performance 53 Looking ahead32 Embedding sustainability 82 contact information35 Our shared goals 4
  5. 5. total recordable incident rate OFFICES AND LABORATORIES per 200 000 hours worked tonnes of C0 2 /FTE SOURCE OF C0 2 EMPLOYEESFocus on Compliance 1350Operational Strategic andIntegrity transformation Integrity electricitypage52 page 38 page 40 56% 70000 sustainability 4.2community services Leadership vehicle fuelsinvolvement at SGS Development 27%page page page66 16 47 1.47 non- transport fuels 9% air & train transport 8% 5
  6. 6. PEOPLE Employees 100% receivingSummary of regularPerformance performance reviews 65.2% 67.4% % of employees receiving regular performance reviewsPROFESSIONAL Natural turnover Safety Training Hours 286043EXCELLENCE % of employees that leave SGS each year of their 13.8% <14% Number of annual safety training hours own will 11.1% 199076*Code of Gender ratio Number ofIntegrity % male employees recordable 739reports % female employees incidentsto helplines 168 ■ m m The number of lost time, 691* 150Total number of integrity 64.8% 65.6% restricted duty, medicalissues reported through treatment incidentsintegrity helplines f and fatalities f 35.2% 34.4% Zero fatalities in 2011Code of Equal 1 TRIRIntegrity opportunity The number of lost time,investigations ratio restricted duty, medical 1.64*Total number of valid (Female managers/ 0.67 treatment incidents 1.47 53 0.60 52 ■reports investigated female employees) and fatalities per 200 000concluding in no breaches hours worked <1 (Male managers/ male employees)Code of Sickness LTIFRIntegrity absence rate Number of lost timenon- Number of days of 1.65% incidents occurring per 0.80*compliances 29 sickness absence 1.46% <1.5% 200 000 hours worked 0.67Total number of breaches 22 as a % of totalof Code identified through days workedintegrity helplinesEmployees 100% 100% Training hours Near missessigning the Number of annual Event, situation orCode of training hours/FTE physical environment 1982*Integrity 23.0 with the potential to 1904 (Includes safety 21.1% of employees signing cause injury, damage or training hours)the Code of Integrity loss to people, property and the environment, but which was avoided by circumstanceEmployees 100% Training ratio 1%completing the % of total employmentsustainability costs spent on traininge-learning 0.72% (Includes safety 0.63%% of employees training hours)completing sustainabilitye-learning 19.9% 6
  7. 7. ENVIRONMENT Building energy intensity in SGS-owned 229♦ COMMUNITY offices 223 -10% Annual kilowatt hours per square metre for SGS-owned officesCO2 emissions Building energy Investment inTotal annual CO2 intensity in Communityemissions (tonnes) SGS-owned 430♦ Donations to community 418 201814 Laboratories 402 organisations and 356 192211 Annual kilowatt hours -10% voluntary groups 317 per square metre for (‘000 CHF) SGS-owned laboratoriesRenewable Water use Totalenergy Annual water 1039904 communityTotal renewable energy purchased (m3) 960886 projectscertificates of origin Total number 306 12497purchased (tonnes of CO2) of projects 155Carbon Water investment in 590intensity intensity sponsorship 516 547(People) 4.5 Annual water purchased 22.5 21.8 Sponsorship of communityAnnual CO2 emissions per 4.2 per employee (m3/FTE) programmes (‘000 CHF) -10%employee (tonnes/FTE)Carbon Hazardousintensity waste(Revenue) 59.0 generatedAnnual CO2 emissions 54.4 Total weight of hazardous 5812* 52.2per revenue (tonnes/ waste generated (tonnes)CHF million) -10% We established a baseline in 2010 against which we will measure and report performance up to 2014 and beyond for our key indicators. In order to provide a meaningful year-on-yearTotal Non-Hazardous comparison throughout our growthelectricity waste programme, we have aligned our dataconsumption generated reporting with that used by Finance toTotal annual kilowatt 223 Total weight of 199 show revenue-related indicators in bothhours of electricity non-hazardous wasteconsumed (million kWh) generated (tonnes) ▲ absolute terms and 2010 data adjusted 16829 on a constant currency basis. 2010 Pro forma (constant currency basis) 2014 Target 2010 PerformanceElectricityconsumption 2011 Performance(People) * Statistics exclude data for one trend country 4662 4661 ▲Annual kilowatt hours Statistics exclude data for three trend countriesof electricity consumedper FTE ♦ Restated to reflect more accurate data and subject to future amendment ■ Includes data from the confidential hotline dedicated to investigating potential cases of discrimination in the US. 7
  8. 8. Summary of commitmentsPROFESSIONAL Roll out our revised Code of Integrity and integrity training across all areas of the business.EXCELLENCE Develop a new global integrity e-learning programme for new employees. Improve our internal Code of Integrity reporting to better capture and report all breaches globally.Excel Roll out the new system for tracking employees’ travel plans to alert them to dangers or hazards.in the way we do Expand our Strategic Transformation programme and enhance dialogue with our customers.business Provide leadership and support to the Innovation Teams in the design, resourcing and successful delivery of innovation projects that benefit the business and our stakeholders.People Launch the SGS global onboarding programme, ‘SHINE’, across all regions. Complete staffing review process for 100% of SGS operations to support succession planning.Improve Review local initiatives in trend countries relating to people, including equal opportunity in employment, natural turnover, investment in training, performance reviews, sicknessour social absence rate, total recordable injury rates. Launch development planning and associated manager and employee training.performance Launch the third module of our Leadership Development Programme. Conduct a review of reward tools and establish a global framework for our reward strategy. Monitor our performance around natural turnover and share our insights with Affiliates. Roll out SGS Rules for Life. Implement ‘Crystal’ incident reporting across the Group.ENVIRONMENT Compile a global database of EEB projects with details of investments and projected savings. Implement the projects identified during 2011 and continue to identify new opportunities for energy efficiency.Reduce Implement our Green Building Guidelines in as many sites as possible, and work with property owners to build EEB aspects into our lease agreements.our environmental Complete installation of cold aisle cooling in the Geneva data centre and begin global roll-out.impacts Pilot videoconferencing and consider roll-out based on the results of pilots. Implement managed print services in Geneva and other offices worldwide. Continue to work at a global level to review more fuel-efficient vehicles and recommend appropriate replacements. Monitor the uptake of environmentally responsible vehicles by SGS businesses and report on the overall impact of replacements on our carbon footprint. Focus our efforts on further waste reduction initiatives, supporting the in-country programmes, sharing best practices and providing further guidance and communications. Roll out our Sustainable Sourcing Charter to suppliers who are under global agreements. Continue to broaden the application of our supplier appraisal process to incorporate suppliers who are sourced and managed locally. Continue to raise awareness of sustainability considerations when making investment decisions.COMMUNITY Support Affiliates in implementing the Group Community Guidelines and Policy. Identify a global community programme based on the framework developed in 2011.Involve employees in Conduct a global survey to re-evaluate our community project impact and alignment withsupporting our communities the Millennium Development Goals. Ongoing 2012 8
  9. 9. This year, our third report is published alongside the annual report and provides an integrated view of our business A large majority of you felt the 2010 and sustainability performance. It Report had increased your level ofReport Focus describes how innovation is shaping understanding of sustainability and SGS’ professional sustainability-related thought it was important that SGS services alongside our approach to publishes a corporate sustainability managing our key impacts and risks report. We have responded to yourSGS publishes an annual corporate (outlined on page 28) and embedding comments in this year’s Report bysustainability statement for its sustainability across our global network. including more local content andemployees, customers and other We would like to thank the 1 319 explaining how we are embeddingstakeholders who have an interest in employees, customers, contractors, sustainability across SGS. We have alsothe Company’s sustainability approach investors, NGOs and other stakeholders tried to enhance the overall design and(see Our Stakeholders section on pages who responded to our survey on last presentation of data. A summary of26 and 27). year’s Report. feedback appears on page 29.Report structure and scope business lines, subsidiaries, Company- been verified by third-party auditorsThe Report has been developed owned and leased facilities. In the in accordance with the Internationalusing the AA1000 Accountability narrative sections of the Report we have Standard of Related Service (ISRSPrinciples Standard as a framework for also included examples of initiatives 4400) as established by the Internationalidentifying, prioritising and responding to from non-trend countries. Performance Federation of Accountants (IFAC).sustainability challenges. As previously, relating to suppliers is not included. We As in 2010, the auditors spent time inwe have chosen to report under the four track sustainability performance using key countries analysing the quality ofpillars of our corporate sustainability over 85 indicators covering people, data collection and reporting and mademanagement system: Professional environment, business, community, recommendations to the managementExcellence, People, Environment and reputation and trust. In line with our team. By the end of 2012, the firstCommunity. The scope covers all financial reporting, any sustainability cycle of auditing of trend countries willregions and business lines and relates to KPIs which are geared to our financial be complete. We are confident thatthe year ending 31 December 2011. performance, such as revenue, have at this point in time this method of also been stated on a constant currency assurance delivers the most value to ourDuring the year the average headcount basis which eliminates the effects of sustainability approach.of full-time employees or equivalents exchange rate fluctuations. In 2011 wegrew by over 10% and the Company In addition to the internal review of the added new indicators relating to energy,acquired 22 new businesses. We Report by the Sustainability Steering waste, and biodiversity. We accept thatevaluate the material bearing of our Committee, management and elected it will take time for us to reach a level ofbusiness growth and acquisitions on employee representatives of the confidence on reported data for theseSGS’ sustainability performance and SGS European Works Council, we new indicators across all our trendprovide explanations for any substantive have also put in place a process for countries. Therefore, we have providedchanges in performance data or restated country Managing Directors (MDs) to explanations of any assumptions useddata in the relevant sections. A full list of provide feedback. We continue to use and techniques underlying estimations inacquisitions is available on our website the Global Reporting Initiative (GRI) the appropriate sections of the Report. Guidelines to inform our reportingReported data process and facilitate comparability with Report assuranceReported data covers permanent, other organisations. For this report we This year, as planned, we have refined have referenced the revised GRI G3.1temporary and casual employees our assurance methodology by taking Guidelines and are pleased to haveworking for SGS but excludes sub- the additional step of commissioning progressed from Level C to Level B+.contractors working on behalf of SGS. a third party auditor. Our second party For clarity, we have decided to prepareIn the interest of accurate disclosure, auditors continue to be responsible for a separate document benchmarking thiswe have limited our scope to areas checking the accuracy and veracity of Report against GRI Guidelines G3.1.where we have most confidence in reported data and content using SGS’ We have also mapped our disclosuresthe data. While we routinely collect own sustainability reporting assurance against the United Nations Globaldata from every country we operate framework. This year, they also provided Compact Principles, available onin, performance is tracked and assurance and a gap analysis against our website.reported using countries identified as the Global Reporting Initiative (GRI)representative of Group performance. Sustainability Reporting GuidelinesThese ’trend countries’ cover more 2011 (G3.1). The scope for their reviewthan two-thirds of employees and over included text, performance data andthree-quarters of revenue, and include data management, which has now 9
  10. 10. 14:00 Introduction
  11. 11. We employ over70 000 peopleand operate anetwork of morethan 1 350 officesand laboratoriesaround the world
  12. 12. SGS helps customers to operate in a Our value lies in how our services more sustainable way by improving benefit our clients and ultimately, their customers.Who we are quality and productivity, reducing risk, verifying compliance and increasing As well as delivering services linked to speed to market. Our services cover all sustainability, in our own operations we industry sectors and touch the products are committed to managing a long-term and services that consumers around the profitable business while taking intoSGS is the world’s leading world rely on every day. SGS provides account all the positive and negativeinspection, verification, testing independent services that make a environmental, social and economicand certification company. difference to people’s lives. effects we have on society.Our vision Our values Our historyWe aim to be the most competitive and We seek to be characterised by our Established in 1878, SGS started bythe most productive service organisation passion, integrity, entrepreneurship offering agricultural inspection servicesin the world. Our core competencies and our innovative spirit, as we to grain traders in Europe. From thosein inspection, verification, testing and continually strive to fulfil our vision. early beginnings, we grew in size andcertification are being continuously These values guide us in all that we do scope as our agricultural inspectionimproved to be best-in-class. They are and are the bedrock upon which our services spread around the world.at the heart of what we are. Our chosen organisation is built. During the mid 20th century, wemarkets will be solely determined by our began to diversify and started offeringability to be the most competitive and to Why WE need to be sure inspection, testing, certification andconsistently deliver unequalled service verification services across a variety of Our success and value to society isto our customers all over the world. sectors, including industrial, minerals and dependent on us exercising foresight, oil, gas and chemicals among others. judgement and responsiveness to the The Company became listed on the needs of all our stakeholders. This SIX Swiss Exchange in 1981. The SGS means applying the same scrutiny to our Group posted revenues of CHF 4.8 own operations as to our customers’ and billion and an operating margin of 17% ensuring operational excellence. in 2011. An annual general meeting of shareholders is held with outcomes posted on the SGS website. Our headquarters are in Geneva, Switzerland. europe, africa & middle east asia Americas 50.4% Revenues pacific 21.4% Revenues 20.5% Employees 43.2% Employees 28.2% Revenues 36.3% Employees 13
  13. 13. Jointstatementfrom theChairman& CEO
  14. 14. Dear Stakeholders, global network of laboratories, andThe past year has been an important enhanced our offer through new ultimately be judged on our abilitymilestone for SGS in fulfilling our services and the acquisition of to marry competitiveness withsustainability commitments whilst 22 outstanding companies. responsibility, while ensuring that ethicsgrowing the business in line with the We also recruited nearly 8 000 and sustainability remain a priority.2014 plan. 2011 saw a solid operating people to complement our existing To succeed we must continually adaptprofit on a constant currency basis and strong talent base. and respond to market challenges andtop line growth across all business This progress was achieved in the uncertainties whilst upholding the highestlines and regions. During the year we context of challenging global standards of operational excellence.continued to push ourselves to deliver economies, rapid growth in emerging This year’s report aims to presentinnovative services and solutions that countries and the increasingly an integrated account of ourhelp our customers to move their visible human and environmental business alongside our keybusinesses forward. We improved consequences of climate change. sustainability commitments, initiativesoperational efficiency, expanded our We know that our success will and performance.We are proud that SGS has been listed We are also proud to share some of and help them to live and work morein the Dow Jones Sustainability Index for the important contributions we make sustainably. We also plan to expand ourthe third consecutive year, and that we locally to sustainable development programme of stakeholder dialogue andwere able to progress from Application through our many community will further evaluate our human rightsLevel C to Level B+ of the Global engagement programmes. impacts and responsibilities.Reporting Initiative’s 3.1 Guidelines. We have continued to strengthen our We are proud of the significant progressDuring 2011, we invested in embedding global offer with the launch of new we have made towards the 2014 plansustainability across the business, sustainability services including landfill and are confident that with the leadershipconducting numerous workshops in management solutions, photovoltaic and commitment from our managersour trend countries and engaging more testing, biogenic carbon and fugitive and employees, sustainability willthan 300 senior stakeholders across emissions testing, and a range of continue to play an integral role in ourour network. We are encouraged by services relating to vehicle battery success. We have shown during 2011the enthusiastic response and support technologies. We have also expanded our how sustainability is helping both SGSfrom our Affiliates resulting in pledges laboratory network across Canada, the and our customers to operate smarterby the Managing Directors to implement United States, Europe and Asia, allowing by increasing productivity and efficiency,over 250 local sustainability initiatives us to invest in more upstream activities. ensuring quality and safety, reducingto complement our global programmes risk, delivering trust and enabling speedon environment (for example: building During the year, the significant number of acquisitions made has enabled SGS to market. We are convinced that byenergy efficiency, green IT, green cars) working together with our stakeholders,and people (for example: health and to gain additional analytical testing capabilities and expertise in areas such positive change can happen.safety, equal employment opportunity,leadership and development). as electromagnetic compatibility and We hope you find this Report an electronic and electrical product safety, interesting insight into our world andAt Group level, we strengthened our and consolidate our leadership in crop look forward to hearing your feedback.sustainability management system with research and precision agriculturalthe integration of sustainability criteria services. In addition, we have increasedinto our major capital investments and our presence in the pipeline integrityacquisitions processes, and introduced industry, acquired a state-of-the-artthe ‘Green Book’, a new tool aimed at laboratory in Colorado specialising insenior management which presents engine emissions and vehicle mileageour sustainability performance using accumulation testing, and broadened ourquantitative, qualitative and monetary scope in non-destructive testing.data. In the following pages you willdiscover how we are attracting and Looking ahead, our priority remains todeveloping talent to support our uphold operational excellence, build our Sergio Marchionneaccelerated business growth; learn technical expertise to support ever more Chairman of the Boardabout our refreshed Code of Integrity; complex industries and further drivefollow our global Operational Integrity innovation through our services. Weprogramme which is driving a strong have formed regional Innovation Teamshealth and safety culture and read how to support us in these aims, comprisingour investment in renewable energy people with the ability to inspire newalongside energy reduction initiatives is thinking and implement change.helping to minimise our carbon footprint. Globally, we will continue to encourage Christopher Kirk employees to contribute to our targets Chief Executive Officer 15
  15. 15. Sustainabilityservices at SGSSuccess can only be achieved if weare able to continuously look beyond We believe there is a direct linkcustomers’ and society’s expectationsto develop market-leading serviceswherever they are needed. Harnessingideas and driving innovation have alwaysbeen integral to the sustainability of between addressing sustainability issuesSGS’ business. In this new section ofthe Report, we provide someconcrete examples of how we useour expertise and global network tobring about innovative and sustainable and achieving our strategic growthsolutions delivering positive results forour stakeholders and our organisation. objectives Our ability to innovate, take on board new technologies and adapt to the constantly evolving needs of our clients is the lifeblood of SGS. What makes us unique is that we do this across such a broad range of industries and regions. Christopher Kirk CEO 16
  16. 16. Global SGS plays a role in the testing and inspection of goods throughout their economy entire life-cycle, from raw materials, and trade Biofuel export certification through manufacturing, distribution SGS has been involved for several years and use. We help ensure thatInternational trade has tripled since in the development of green field bio- standards are in place that safeguard1990 and is set to continue to rise. ethanol production projects in Africa all people along this supply chain. ForGlobal economies are becoming and Latin America. SGS’ principal role example we test for pesticides in food,increasingly dependent upon has been to advise financial institutions, labour conditions in factories, for the generally development banks, on the safety of automotive design and fortrade in food, energy, minerals, technical aspects of the projects through the safe manufacturing of toys andresources and raw materials. due diligence and project monitoring other consumer goods. The followingMost trade is only possible with services. One such project is the are just two examples that illustrateindependent inspection, testing, Makeni Ethanol Project in Western our broad and unique contribution.verification and certification which Africa, sponsored and run by privateform the backbone of SGS’ business, companies, with additional funding fromensuring that goods are safe and fit a consortium of development banks.for purpose. We monitor and measure The project, which will be operationalconformity throughout the supply in 2013, will consist of a sugar cane Checking labour standardschain, certifying raw material quality, plantation, ethanol distillery and co- in supply chainsmonitoring labour standards in factories, generation power plant and relatedindependently testing goods being infrastructure. It will produce about 85 SGS is a global leader in socialshipped and certifying them against 000 m3 of ethanol per annum, primarily responsibility auditing services, playinginternational quality standards. for export to the European Union but an active role in the development of also for the local market, and 100 000 international audit methods to help MWh of renewable power per annum, improve labour conditions within which will supply the distillery and factories and sites of employment. power plant and feed the remainder into We cover the main countries where the national grid. In order to be sold on consumer goods are manufactured. ThisBallast water certification EU markets, the ethanol produced by is supported by a global team of experts the project needs to meet EU biofuel who supplement monitoring activitiesBallast water, which stabilises ships sustainability criteria and be certified with training and support for productionduring transit, can contain unwanted accordingly. SGS has been advising the sites to help drive improvement.marine species and microorganismswhich can upset the delicate consortium of lenders on the technicalecosystems when the ballast water feasibility of the ethanol and poweris discharged in port. SGS operates a plants. SGS services provide confidencefleet of mobile laboratories which use to the lenders that renewable productionthe latest devices to sample and test of fuel and electric power based on biomass is viable in Western Africa. Combating corruptionballast water to prevent marine pollution, Corruption has disastrous effects onincluding testing for temperature, salt, struggling economies and is rankedcontaminants and microorganisms as one of the biggest obstacles toas well as levels of healthy marinelife. Such testing is set to become a Human economic development and growth.requirement by many international ports. development SGS works in a number of ways to combat corruption associated with tradeSGS is also developing techniques to Globalisation and increased and many other aspects of business.certify the water treatment systems consumer awareness has put We help to develop policies and offerused on ships to guarantee the quality training in corruption awareness,of ballast water. more responsibility on companies identifying risks throughout supply to ensure that the goods they chains and checking that anti-corruption sell are made in safe working measures have been put in place. We conditions, at fair rates of pay and support the World Bank Voluntary Disclosure Program through respect the basic human rights of specialised monitoring services and those involved in production. have partnered with ETHIC Intelligence, a specialised anti-corruption certification body, to offer formal assessments of anti-bribery programmes. 17
  17. 17. Preservation partnership with the National Institute for Space Research, which detects incineration plants using waste as a fuel to determine the proportion of fuel of forests agricultural crops in deforested areas. which is carbon neutral. and SGS is currently the only independent SGS has introduced a unique service biodiversity company involved in the monitoring of which can differentiate between the this programme. We use the satellite different types of fuels being burned.Forests, covering about 30% data, combined with site inspections, Working exclusively with the onlyof the world’s land area and to ensure that the moratorium is being commercial laboratory doing large-providing a habitat for over 70% followed, identifying soya beans that scale carbon dating, we have combined have been grown responsibly. Our this technology with the latest powerof land animals and plants, play monitoring during 2010/2011 found station sampling techniques. The carbona crucial role in maintaining the crops on over 11 000 hectares that had isotope C-14 is present in carbon neutralearth’s water cycle and balance of been deforested illegally. As a result of fuels but absent in materials derivedgreenhouse gas levels. Yet each the monitoring carried out to date, the from fossil fuels. By measuring the moratorium was renewed in 2011. proportion of C-14 in flue gases we areyear an area of forest nearly twice able to accurately measure the overallthe size of Switzerland (41 300 carbon footprint of the power generated.km2 ) is being lost, mainly due to The mechanism has been acceptedagriculture. Halting deforestation Energy and under both the Clean Developmentand increasing yields from planted power Mechanism and the European Union Emissions Trading Scheme.forests is a major priority for a Population growth, predominantlysustainable future. in developing countries, isSGS provides a wide range of services resulting in increased globalto support sustainable forestry, including energy demand. At the same time, Agriculturethe certification of forests to theinternational Forest Stewardship Council urgent measures are required to and foodstandard, providing advice on responsible stabilise climate change through productionforest management, mapping the the reduction of energy usage The global population grew todegradation of the rainforest and seeking and the adoption of carbon-free 7 billion this year and is expectedways to maximise production from energy sources. The transition to to rise to over 9 billion by 2050.existing forested areas. a lower carbon society is being The UN Food and Agricultural driven by both environmental and Organisation predicts that food commercial imperatives, with production needs to increase the private sector representing by 70% to provide food that is a major source of innovation to safe, nutritious, adequate andPreventing deforestation generate solutions. affordable. At the same weIn 2006, members of the Brazilian face a challenge to reduce thevegetable and grain industries signed SGS helps customers to reducea moratorium that prevents companies greenhouse gas emissions through a food lost through poor handlingaround the world from acquiring soya wide array of services, ranging from and spoilage.beans grown in deforested areas of energy reduction advice to the testing SGS fulfils a vital role by helping tothe Amazon. The system is monitored of clean energy technologies as well as increase crop yields, testing newthrough satellite imagery, developed in energy monitoring and auditing. varieties of crops, piloting new production technologies, testing food safety and ensuring the safe keeping of food during storage and transport. Monitoring emissions from renewable sources The use of waste is gaining traction as a fuel source to generate heat and power. Increasing yields through The majority of waste is made up of a precision farming wide variety of materials, ranging from Large differences in the quality of soil carbon neutral elements such as paper, may prevent farmers from optimising cardboard or wood, to materials which crop yields. Until now, farmers have are derived from fossil fuels like plastics. often either under- or over-fertilised Until now, it has not been possible for arable land which causes environmentalSatellite image which detects agricultural crops indeforested areas 18
  18. 18. pollution, additional cost, or significantlyreduced yields. SGS provides a solutionto this problem through the GPS trackingof soil conditions, measuring acidity Sustainable aquacultureand nutrient levels at regular positions and fisheriesto produce a soil fertility map. Thisallows a farmer to only apply fertiliser Aquaculture is considered to be aand treatments where they are needed, sustainable means of increasing seafoodachieving balanced growing conditions supply to meet global food needs aswhich can result in up to 5% increased well as to reduce pressure on naturalyields. SGS introduced the service to resources. Farm-reared productionKenya in 2011, working with 42 farms to from aquaculture facilities nowhelp improve yields. accounts for approximately 25% of seafood consumption. SGS is at the forefront of the Carbon footprinting food certification of sustainable aquaculture. production in China Our Consumer Testing Services are In December 2011, actively involved in the development SGS published theReducing food spoilage of the World Wildlife Fund’s results of the first everIt is estimated that up to 10% of global Aquaculture Stewardship Council food product carboncereal production and up to 40% of certification programme. We also carry footprint in China. Thefresh produce is lost through poor out certification under the Marine Zhangzidao Fisheryhandling and storage before it reaches Stewardship Council’s Standard for Group in China’s North-the consumer. The transport and storage Sustainable Fishing which ensures East Liaoning province is one of China’sof food is a complex challenge which that the wild caught fishery products largest fishery companies, farming aneeds to be resolved if we are to meet originate from well managed fisheries variety of bottom-cultured seafoodglobal targets for food production. and are sourced from a sustainable such as scallop, squid and prawns. SGSSGS is developing an integrated food stock. In June 2011, SGS signed an undertook pioneering work to calculatesafety and loss prevention facility to agreement with the Best Aquaculture the carbon footprint associated withstore and distribute fresh foods in Practices (BAP) organisation to perform farming scallops throughout their entirecountries where there is a high spoilage facility inspections and certification lifecycle. The objective was to evaluaterate. Currently being piloted in Mumbai, audits for aquaculture farms, hatcheries, the environmental impacts of scallopIndia, this integrated storage facility processing plants and feed mills. farming so that the company could takechecks and tests food on intake and The BAP standards address measures to reduce this impact. SGSthen stores it in different, carefully environmental and social responsibility, deployed experts across a range ofcontrolled environments by product animal welfare, food safety and disciplines such as lifecycle assessmenttype. Once piloted it is hoped this facility traceability. Jim Heerin, BAP’s Executive consultants, energy consumptionwill offer an affordable and effective Director commented that “We are specialists and marine biologists. Wemeans of storing food safely and very pleased to work with an auditing assessed the overall greenhouse gaseconomically in countries with no organisation with such worldwide emissions and awarded an SGS Productaccess to such facilities. capacity and capabilities as SGS”. Carbon Footprint Mark to the operation.Map illustrating fertility of soil conditions through GPS tracking 19
  19. 19. Buildings buildings and systems, building energy audits, energy management certification Mobility and and related training (e.g. ISO 50001), transportThe construction industry indoor environmental quality testing, Transport is one of the largest green building certification (e.g.accounts for approximately 40% global sources of greenhouse LEED, BREEAM), decommissioningof the total flow of raw materials of buildings and the certification of gases. The potential for reducinginto the global economy. Existing materials for recycling and reuse. demand for transportation isbuildings are responsible for currently limited and thereforemore than 40% of the world’s international efforts focused onprimary energy consumption and technologies to improve fuelapproximately one-quarter of economy and transform the Certification of New Delhi airport types of energy used forgreenhouse gas emissions. The terminal three building at New transport are crucial.SGS has built up over 20 years’ Delhi’s Indira Gandhi airport wasexperience in responsible building SGS works closely across all modes opened in July 2010 and is built tomanagement and we are currently of transport, helping to develop handle over 34 million passengersrefocusing our services to provide new technologies and carrying out each year. It provides South Asia’smore integrated solutions to help tackle testing and certification to promote most important aviation hub, receivingthe environmental impact of buildings improvements in safety and efficiency. over half of its air traffic. Throughoutthrough their lifecycle its design and construction, SGS provided commissioning, monitoring and verification services to ensure that environmental aspects were incorporated into the airport’s design Vehicle emissions testing and construction. This included theIntegrated green During 2011, SGS acquired commissioning of more than 800 airbuilding services handling units over an air conditioning Environmental Testing Corporation, aSGS already works across a range of area of more than 4 000 000 m². Built in specialist company based in Colorado,industries to promote efficient building just 37 months, the airport was awarded USA, which is able to accurately testdesign construction, management LEED Gold rating for new construction, how engine emissions vary during aand end-of-life services. In 2011 we becoming the world’s largest LEED Gold vehicle’s life. ETC’s state-of-the-artbegan to offer an even more complete certified building. laboratory measures a wide varietyservice, helping customers to develop of emissions from both engines andand implement total sustainable asset whole vehicles, including emissionssolutions. This brings together building to which drivers and passengersand material lifecycle analysis, building could be exposed. This provides vitalenergy modelling, commissioning of information that helps manufacturers optimise the engine efficiency of vehicles over their lifespan. 20
  20. 20. Materials outreach programmes to establish potential impacts on local populations. and mining In addition, we deliver health and safetySupporting electric and hybrid training for employees, and technology As global demand for consumervehicles (e-mobility) to help to control entry in and out products continues to rise,The electrification of vehicles is the of certain parts of a mine using our so does the requirement for bespoke system. Through dedicatedkey to sustainable individual mobility.During the last 10 years, the capacity the raw materials needed laboratories we are able to build up pilotfor using electric and hybrid cars has for manufacturing, leading to models of development sites to improveincreased and with the possibility of the efficiency of extraction during the exploration of minerals andlower-cost, high-performance batteries, planning stages of site development. materials in increasingly remote We continue to provide independentthe widespread use of hybrid cars isbecoming possible. and difficult territories. monitoring throughout the life of SGS helps extractive industries to the mine and also duringFor more than 10 years, SGS has be both efficient and responsible decommissioning when sites areprovided testing and certification over the long-term. We play a part in returned to their natural state.services to ensure the safety of Lithiumbatteries for use in mobile phones, determining where a site should be built,laptops and power tools and has how it is designed and in monitoringrecently expanded this competency to its environmental and social impactscover vehicle batteries. This is carried throughout its lifecycle.out in our new Battery Test House local minerals skills trainingand E-Mobility Competence Centrein Munich, Germany where we offer Given the shortage of suitably qualifiedservices needed to develop and test and experienced candidates into thesafe electric, hybrid and fuel cell cars. Minerals business in West Africa, SGSThe Centre has over 60 specialists Responsible Mining West Africa has established a Mineralsin e-mobility. Mines are large consumers of energy Training Academy to create a talent and water and are increasingly located pipeline. The Academy, based in Ghana, in environmentally or politically sensitive will be fully operational from early 2012 territories. SGS assists the mining and will offer tailored and structured industry in a number of ways, helping training on the procedures, instruments to minimise negative environmental and equipment pertinent to SGS’For more information on and social impacts from mines, and laboratory operations in the region. TheSGS Sustainability Services providing expertise to maximise training will follow a three-tier approach,please visit our website efficient operation. This may include with each tier comprising a combination preliminary environmental and social of theoretical and practical training and impact assessments such as community will last six weeks. 21
  21. 21. Our approach to21:00 corporate sustainability Our approach to corporate sustainability
  22. 22. Corporate sustainability plays an • Embedding a culture of operational important role in helping us deliver excellence and upholding the highestdoing our growth objectives. Our four-year standards of integrity, safety and strategic plan, launched in 2010, aims business integrity to drive revenues to CHF 8 billion by • Making a positive socio-economic 2014 and achieve an operating income contribution to the communities of CHF 1.6 billion. The 2014 planmore where we operate, for example by defines the strategic lines that we are encouraging job creation, supporting pursuing to strengthen our market- skills development and investing leading position in testing, verification, in communities inspection and certification. It explains • Providing a stimulating and rewardingwith how we can continue to deliver strong organic growth while using work environment based on effective acquisitions to expand certain areas human resource policies and of our service offering and geographic programmes that attract, develop and coverage. Underpinning this agenda is retain the best talentless an appreciation that our growth drivers • Reducing our environmental cannot be achieved effectively without footprint across the Group, particularly a commitment to sustainability. with regard to greenhouse gas Our sustained growth and value to emissions, energy consumption, society is dependent on SGS: and waste minimisation Operational Excellence and Business Excellence are the driving forces to reach the 2014 plan. The key message on sustainability is to do more, using less resources. Christopher Kirk CEO External InfluenceSustainability GOVERNANCE and Engagementvision The Operations Council formally endorsed the SGS Group sustainabilityTo manage a strategy in 2008. Since then we have Board of directorslong-term, profitable focused our efforts on developing the policies, governance structure andbusiness while taking performance data systems to manage Operations Council our sustainability impacts and driveinto account all the performance. SGS’ Sustainability Sustainability Steering Committeepositive and negative Steering Committee, chaired by the Chief Executive Officer, is a sub-environmental, social committee of the Operations Council regional and local Sustainability committees and comprises Chief Operating Officers,and economic effects Executive Vice Presidents and Seniorwe have on society. Vice Presidents across our operating regions. The Committee meets twice Sustainability per year and is responsible for strategy Management System development, reviewing performance and agreeing core programmes and improvement targets. 24
  23. 23. The Group sustainability programme is Company policies managed by the Corporate Sustainability All SGS operations are governed by team and is led by the Vice President policies which set out clear parameters Corporate Sustainability who reports for operating in a responsible and to the Chief Executive Officer. The sustainable manner. A summary of team is responsible for overseeing the SGS policies linked to sustainability Group’s core sustainability programmes and copies of selected policies and management system, as well as can be found on our website. Each supporting Affiliates on sustainability country is accountable for identifying matters. It also manages the Company’s and implementing local initiatives engagement with external organisations which support the core sustainability such as the World Business Council for programmes, and reporting Sustainable Development (WBCSD), sustainability performance on a regular sustainability the Carbon Disclosure Project, and the basis via Solaris, our sustainability group management system Global Reporting Initiative. management accounting system. Sustainability Sustainability Pillars and KPIs programmes Professional Excellence Excel ts ge Corporate governance Professional integrity Laws and regulations SGS Sustainability e-learning tar Procurement Mo Risk management Stakeholder engagementset ni t Sustainability Services or , m People improve e a s u r e , m o n e t is e , Code of Integrity - Human rights Annual performance reviews Human resources Equal employment BASELINE Operational Integrity (Health Safety) Human rights Natural turnover Sickness absence Total recordable incidents Training Environment reduce Biodiversity Energy efficiency in buildings ve Climate change Green cars rif Waste management Green IT y, Water management Green procurement au Sustainable capex Waste management d it, im Community involve pr ov Community involvement Alignment to Group policy e, and guidelines re Community po programmes and rt projects an dc om m unicat e 25
  24. 24. Our stakeholdersAND SUB-CONTRACTORS SUPPLIERS, BUSINESS SHAREHOLDERS AND SPECIAL INTEREST PARTNERS AND CONSULTANTS CUSTOMERS ACADEMICSEMPLOYEES INVESTORS NGOS AND GROUPS, Face-to-face dialogue Face-to-face dialogue Regular briefings and Direct dialogue Face-to-face dialogue Internal workshops and Site visits and business presentations Workshops and Conferences and meetings meetings Corporate website meetings meetings SGS intranet/CEO Voice of the customer Annual General Site visits Corporate Corner survey Meeting Sustainability website SGS teamsites Brochures Annual Report questionnaire Workshops Social media/mobile Corporate website Corporate Corporate website Carbon disclosure phone apps Trade shows and Sustainability Report Social media response Training and e-learning seminars Corporate Internal newsletters White papers Provide the financial Provide quality products Sustainability Report and posters Corporate Sustainability capital necessary to and services to support Performance reviews Report/Factsheet sustain growth our service delivery and Offer a deeper insight Corporate Sustainability operations into socio-economic Report /Factsheet trends and challenges Customers drive our To provide sustainable business growth and growth and To provide opportunities Employees are our core success returns on investment for growth and To respect open and asset, delivering services development honest dialogue with integrity and harnessing trust in our To help customers business and our brand to operate in a more sustainable manner by improving quality To provide a safe, and productivity, stimulating and reducing risk, verifying rewarding work compliance and environment within a increasing speed to long-term sustainable market company 26
  25. 25. Stakeholder Understanding and responding to the needs of our customers and society is How we engage fundamental to our business. Our ability The following diagram, compiled by the Relationship to SGS to deliver services and create value Corporate Sustainability team in liaison Our commitment requires us to foster relationships with with heads of key functions, illustrates Ongoing a wide range of stakeholders through the nature of our key relationships and direct dialogue and engagement, our engagement activities. It will be Periodic particularly at a local level. reviewed and updated annually. Annual FINANCIAL COMMUNITY; SOCIALLY RESPONSIBLE LOCAL COMMUNITIES AND ASSOCIATIONS AND REGULATORS UNIONS, WORKS GOVERNMENTS TRADE BODIES AUTHORITIES, INVESTORS COUNCILSMEDIA Regular briefings Face-to-face Face-to-face Direct dialogue Regular briefings Annual meetings dialogue meetings Workshops and and presentations DialogueImpartial Employee Business meetings Corporate website with unioncommentary on engagement organisation Conferences Annual Report representativesour activities and and volunteering meetings Corporate European Forum/performance in community Written Sustainability European Works projects communication Professional insight Report Council Corporate Corporate website into industry trendsTo respect open engagement and challenges;and honest dialogue Corporate Financial advice Employee feedback in community Sustainability lobbying and commentary projects Report on Group financial To share business To share knowledge and sustainability performance and Provide our license and insight into performance engage in dialogue Provide our license to operate locally industry challenges to operate at global and opportunities and national levels To respect To contribute to open and honest socio-economic dialogue To contribute to development socio-economic through development employment, skills through development and employment, skills support for local development and initiatives support for local initiatives 27

×