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  1. 1. The UN Global Compact <ul><li>“ Internalizing the Global Compact principles: </li></ul><ul><li>steps toward a socially responsible UN System” </li></ul><ul><li>Cornis van der Lugt, </li></ul><ul><li>UNEP Division of Technology, Industry and Economics (DTIE) </li></ul><ul><li>Meeting of UN Interagency Network of Facilities Managers (INFM6), Addis Ababa, 20 – 22 February 2006 </li></ul>
  2. 2. <ul><li>Agenda </li></ul><ul><li>UN Global Compact (UNGC) update </li></ul><ul><li>UNGC internalization: update </li></ul><ul><ul><li>Human Resources </li></ul></ul><ul><ul><li>Investment Management </li></ul></ul><ul><ul><li>Procurement </li></ul></ul><ul><ul><li>Facilities Management </li></ul></ul><ul><li>Continual improvement and communicating progress </li></ul>The Global Compact
  3. 3. After six years... <ul><li>The UNGC today: an update </li></ul><ul><li>Six years since formal launch in 2000… </li></ul><ul><li>World’s largest corporate citizenship initiative > 2300 participants (mainly companies) from 80 countries </li></ul><ul><li>47 local networks , national and regional, using agreed template for undertaking UNGC activities (mulstistakeholder dialogue, learning events, UN-related projects) and reporting annually </li></ul><ul><li>UNGC Cities Network (Melbourne, Bath, N ürnberg, Porto Alegre, Plock) and stock exchanges (Bovespa) </li></ul><ul><li>Annual COPs: since 2004/5 companies need to report on implementation annually </li></ul>
  4. 4. After six years... <ul><li>The UNGC today: an update </li></ul><ul><li>UN General Assembly Resolution A/C.2/60/L.38 of December 2005, entitled Towards global partnerships : “Encourages responsible business practices, such as those promoted by the Global Compact… Encourages relevant UN organizations and agencies, and Global Compact Office, to share relevant lessons learned…” </li></ul><ul><li>Business UNusual Partnerships Report to World Summit Assembly 2005: V oluntary partnership initiatives to develop norms and standards “often respond to the failure of traditional governance mechanisms to come up with effective, binding frameworks…” </li></ul>
  5. 5. Our own practices <ul><li>UNGC internalization: a reminder of “The Right Road” report findings </li></ul><ul><li>Low awareness of materiality (relevance) of the UNGC principles to UN purposes causes lessons learned to escape institutional memory (lack official guidelines, organized / systemic effort) </li></ul><ul><li>Silence at the centre stifles innovation and service delivery, and permits practice that does not promote advancement of international norms / UN goals </li></ul><ul><li>No logical, ethical or legal bar exists to managing the Organization's staff and service functions to be consistent with the Compact principles </li></ul><ul><li>Every part of the Department of Management has to assess the way it does business in light of the principled imperatives </li></ul><ul><li>- Judge Karen Burstein, Report to USG, February 2004 </li></ul>
  6. 6. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Human Resources WG </li></ul><ul><li>Progress made since 2004: nothing? </li></ul>
  7. 7. Our own practices Let’s remind ourselves of the Human Rights principles: 1. Businesses should support and respect the protection of internationally proclaimed human rights; and 2. Make sure they are not complicit in human rights abuses. HR management challenge / field application: Personnel / DPKO joint interest in civil and human rights field training… link of OHCHR activities and guidelines for business…
  8. 8. Our own practices <ul><li>… and the Labour principles: </li></ul><ul><li>3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; </li></ul><ul><li>6. Eliminate discrimination in respect of employment and occupation. </li></ul><ul><li>HR management challenge / internal application: recognition of staff unions, human capital, employee satisfaction, gender, anti-discrimination </li></ul><ul><li>Can we learn from business in areas of management style, efficiency, customer orientation? Can we inspire internal champions, improved working environment, staff morale? </li></ul>
  9. 9. Our own practices <ul><li>… and the Labour principles: </li></ul><ul><li>4. The elimination of all forms of forced and compulsory labour; </li></ul><ul><li>5. The effective abolition of child labour; and </li></ul><ul><li>Supply chain management challenge / field application: Does your supplier for example force people to work overtime, or take their identity cards before employment? Does your supplier employ children? Have you asked? </li></ul>
  10. 10. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Investment Management WG progress: </li></ul><ul><ul><li>Investment Management Services (IMS) discussions with internal IM staff, advisors, services providers and consultants to formulate methodologies, plans for evaluating impact </li></ul></ul><ul><ul><li>IMS doing qualitative analysis of companies invested in , considering UNGC principles </li></ul></ul><ul><ul><li>Nest step: developing investment policy promoting UNGC principles </li></ul></ul><ul><ul><li>UN Joints Staff Pension Fund Board approved approach aimed at integration of sustainable development and UNGC principles into Fund operating processes and investment policies… asked periodic reports on implementation… </li></ul></ul>
  11. 11. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Investment Management WG progress: </li></ul><ul><li>Principles for Responsible Investment (PRI) initiative of UNGC and UNEP Finance Initiative: </li></ul><ul><ul><li>Development of investment principles based on environment, social and corporate governance (ESG) criteria </li></ul></ul><ul><ul><li>26 international public pension funds involved </li></ul></ul><ul><ul><li>UNJSPF involved, expected to join other pension funds in endorsing PRI due to be launched at NYSE, 26 April 2006 </li></ul></ul>
  12. 12. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Investment Management WG progress: </li></ul><ul><li>Background: UNGC 2004 Leaders Summit: </li></ul><ul><li>Who Cares Wins report (UNGC) </li></ul><ul><ul><li>“ Financial institutions should commit to integrating environmental, social and governance factors in a more systemic way in research and investment processes…” </li></ul></ul><ul><li>The Materiality report (UNEP FI) </li></ul><ul><ul><li>“ Innovative techniques are being developed to perform financial analysis of environmental, social and corporate governance criteria in response to growing investor demand…” </li></ul></ul><ul><li>Fiduciary responsibility: of investment manager to fund holder </li></ul><ul><ul><li>Short versus long term profitability, risks …is a company / organization with sound ESG systems in place not a better, more stable investment? </li></ul></ul>
  13. 13. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Procurement WG progress: </li></ul><ul><li>UN Procurement Service (UN/PS) </li></ul><ul><ul><li>Appendix to solicitation documents, bringing UNGC and its principles to attention of the supplier </li></ul></ul><ul><ul><li>Website – dedicated page to explain the UNGC initiative </li></ul></ul><ul><ul><li>Effort recognised by General Assembly Resolution A/RES/59/288 </li></ul></ul><ul><ul><li>UN Supplier Code of Conduct (with implementation guide, self-assessment check-list and remediation guide): feedback received from IAPWG and Office of Legal Affairs: expect promulgation early 2006 </li></ul></ul>
  14. 14. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Procurement WG progress: </li></ul><ul><li>“ UN Global Marketplace”: </li></ul><ul><ul><li>Portal to access info on procurement by all UN agencies, managed by UNDP/IAPSO in Copenhagen… electronic registration form to include more questions related to UNGC </li></ul></ul><ul><ul><li>IAPSO publications series: to be placed on Marketplace website with e.g. “How to do Business with the UN” guide including references to UNGC / responsibility issues </li></ul></ul>
  15. 15. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Procurement WG progress: </li></ul><ul><li>UN Environmental Management Group (EMG) </li></ul><ul><ul><li>2005 sustainable procurement survey among UN agencies, led by UNEP with WB and IAPSO… report to be presented to EMG in 2006 </li></ul></ul><ul><li>UN/PS next steps include planned review of current agency procurement practices with ref to UNGC, seek views of stakeholders (finance, audit, legal, main clients), do report with recommendations to 30 th IAPWG meeting </li></ul>
  16. 16. The Principles <ul><li>and while we’re at it, reminder of the latest UNGC principle: Anti-Corruption </li></ul><ul><li>10. Businesses should work against all forms of corruption, including extortion and bribery </li></ul><ul><li>Added at the June 2004 Global Compact Leaders Summit, NY, following wide consultation with participants </li></ul><ul><li>Learn with business challenge: UN Office on Drugs and Crime (relevant convention secretariat host in Vienna), UNGC Office and Transparency International: new guidance material for business… and public agencies? </li></ul>
  17. 17. The Principles … and as we move to facilities management, the UNGC Environment Principles: 7. Businesses should support a precautionary approach to environmental challenges; 8. Undertake initiatives to promote greater environmental responsibility; and 9. Encourage the development and diffusion of environmentally friendly technologies .
  18. 18. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Facilities Management WG progress: </li></ul><ul><li>INFM-5, Sept 2004, Beirut: </li></ul><ul><ul><li>recommended - buy-in of senior management, internal / external awareness raising, training, environmental policy and environmental management systems (EMSs), website database with best practice examples, link relevant websites, joint learning meeting with UNGC companies, annual report back at INFM meetings </li></ul></ul><ul><ul><li>shared examples, experiences – “Fair Pack” case study (UNEP – contracted workers rights, benefits), Safety Construction Guidelines compliance, contracts, technical protocols </li></ul></ul><ul><li>INFM-6, Feb 2006, Addis Ababa: </li></ul><ul><ul><li>track progress , share examples and experience, suggest improvement, practical focus areas </li></ul></ul>
  19. 19. Our own practices <ul><li>UNGC internalization: </li></ul><ul><li>Facilities Management WG progress: </li></ul><ul><li>HQ Facilities Management Division: </li></ul><ul><ul><li>yearly occupational health & safety training </li></ul></ul><ul><ul><li>improve code compliance (e.g. evacuation routes) </li></ul></ul><ul><ul><li>environmental policies, management systems : materials, products, practices (incl energy efficiency, waste management, 3Rs - reduce/re-use/re-cycle) </li></ul></ul><ul><ul><li>UNGC principles posted on INFM website </li></ul></ul><ul><ul><li>supporting EMG sustainable procurement Issue Management Group led by UNEP, WB, IAPSO </li></ul></ul><ul><ul><li>coordinator on standards, best practices at offices away from HQ to advance green buildings </li></ul></ul><ul><ul><li>internal briefings with UNGC Office </li></ul></ul>
  20. 20. Our own practices <ul><li>Where do YOU stand? Are you organized? Your systems in place? </li></ul>
  21. 21. We’re too big, complex? Compare a typical multinational corporation Managing for quality in the UN System
  22. 22. Internalize the principles <ul><li>Communicating progress: indicators, reporting systems </li></ul><ul><li>Global Reporting Initiative (GRI) Guidelines: supplement for public agencies (cf examples from government departments at www.globalreporting.org ) </li></ul><ul><li>Setting up a reporting system - example of UNEP DTIE: started in 2004 with “sustainability team”, GRI-based performance indicators defined, data collected, 1 st sustainability report in 2006 </li></ul><ul><li>UNEP DTIE practical actions: employee survey (inputs); recycled paper (savings); new computers on lease system, old ones taken by company ONYX for recycling; new office vehicle – Toyota hybrid car; monitoring monthly staff mission air travel GHG emissions </li></ul>
  23. 23. <ul><li>UNGC Principle 8… the most wide-ranging principle, and its applicable 2002 GRI Core Indicators </li></ul>EN1 Total materials use other than water, by type [Materials] EN2 Percentage of materials used that are wastes (processed or unprocessed) from sources external to the reporting organisation [Materials] EN3 Direct energy use segmented by primary source. [Energy] EN4 Indirect energy use. [Energy] EN5 Total water use. [Water] EN6 Location, size of land owned, leased, managed in biodiversity-rich habitats. [Biodiversity] EN7 Description of the major impacts on biodiversity associated with activities and/or products and services in terrestrial, fresh waster and marine environments. [Biodiversity] EN8 Greenhouse gas emissions [Emissions, Effluents and Waste] EN9 Use and emissions of ozone-depleting substances. EN10 NOx, SOx, and other significant air emissions by type. [Emissions, Effluents and Waste] EN11 Total amount of waste by type and destination. [Emissions, Effluents and Waste] EN12 Significant discharges to water by type. [Emissions, Effluents and Waste] EN13 Significant spills of chemicals, oils, and fuels in terms of total number and total volume. [Emissions, Effluents and Waste] EN14 Significant environmental impacts of principal products and services. [Products and Services] EN15 Percentage of the weight of products sold that is reclaimable at the end of the products’ useful life and percentage that is actually reclaimed. [Products and Services] EN16 Incidents of and fines for non-compliance with all applicable international declarations/conventions/treaties, and national, sub-national, regional, and local regulations associated with environmental issues. [Compliance]
  24. 24. The public / UN agency in context <ul><li>Your boundaries of responsibility </li></ul><ul><li>internal operations, outputs and outcomes: </li></ul>Agency Policies, Work Programme e.g., kwhrs of energy conserved via solar hot water system rebate project Organisational Performance / Facility Management e.g. energy consumption in kwhrs by a public agency
  25. 25. “ The world around us is changing… we have to adapt to the realities outside.” - UNSG Kofi Annan Millennium Summit September 2000 for more information www.unglobalcompact.org www.unep.fr www.globalreporting.org