Responsible Electronics 2013: Corporate Reporting and Transparency

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Presentations from the EICC conference Responsible Electronics 2013, Oct 1-3 in California.

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  • This data is put into use. Users of Bloomberg Terminals worldwide have the ability to access CDP data as shown here. 1 million CDP data points are downloaded from Bloomberg terminals every 6 weeks.
  • CDP data is also available on google finance for publicly listed companies who are part of our formally requested sample and that respond. As you can see here the CDP score is listed on Google Finance. Simply collecting this information is a starting point, but the real value is in providing metrics for the market to use. As such, sustainability ratings are becoming increasingly more important for the valuation of the financial market. CDP data is also available on our website. The public is able to find out who responds and read the entire response of each company who makes their response public. Choosing to make a response public is the choice of the company.
  • Responsible Electronics 2013: Corporate Reporting and Transparency

    1. 1. Welcomes you to Sponsored by Exhibitors
    2. 2. How is EICC tackling CSR Reporting and Transparency?
    3. 3. Transparency • Identified as a key issue in 2012 • Formed task force, developed KPIs and maturity curve • Launching “data mining” project to help member companies track KPIs in their EICC audits and SAQs • Looking for ways to improve VAP protocol to collect better, quantifiable KPI data. • Coming soon - An enhanced EICC baseline, and confidential benchmarking on KPIs for member companies.
    4. 4. Transparency KPIs: Labor Health and Safety Environment Ethics and Governance - % workers consistently within 60 hr work week - % of workers consistently meeting EICC rest day requirement - % of purchasing managers responsible for working hours results of suppliers - Injury rate - occupational disease rate - # lost days from injury - absenteeism rate - # work-related fatalities - Total Weight of Hazardous and Non-Hazardous Waste by type and destination. - Total Weight of Waste by Type and Disposal Method - % and total number of business units analyzed for risks related to corruption - % student workers - % workers under 18 - % student workers that have a contract agreement signed by the vocational school, the company and the student - Description in place to ensure tasks assigned to young workers are appropriate for their age - % of total workforce represented in formal joint management-worker health and safety committees - Total Water Withdrawal by Source - Total water discharge by wastewater quality Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations. - risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. Number of successful prosecutions and amount of related fines Total Direct (Scope 1) & Indirect (scope 2) Greenhouse Gases by Weight - # of legal actions for anti- competitive behavior, anti-trust, and monopoly practices and their outcomes % of workers trained on their rights - Grievance mechanisms in place, evidence they are in use and accessible to young/student workers Evidence of unreported injuries and/or work-related disease or fatalities. Have public GHG reduction goal and share reduction achieved in absolute and normalized values (EICC) - % of employees trained in organization’s anti-corruption policies and procedures. - Y/N Does the company have a publicly available conflict minerals policy.
    5. 5. Working Maturity Curve - TTF AwarenessAwareness ImpactImpact CommitmentCommitment IntegratedIntegrated StrategicStrategic Information from these levels contribute to EICC’s aggregated information. Proposal: must have 10 members report on a metric before it is aggregated.
    6. 6. Awareness AwarenessAwareness ImpactImpact CommitmentCommitment IntegratedIntegrated StrategicStrategic • Identify 10 KPIs to start program (easiest to report) • Develop corporate commitment to track and report on these KPIs in own operations (with eye to tracking and reporting in supply chain over time) • Begin developing company-specific roadmap for all steps in maturity curve.
    7. 7. Commitment AwarenessAwareness ImpactImpact CommitmentCommitment IntegratedIntegrated StrategicStrategic • Report on 10 KPIs for own operations (to EICC, public if interested) • All 10 KPIs should have quantitative metrics to report • Develop plan to report on 26 KPIs for own facilities and supply chain • Develop goals for at least 10 KPIs, report to EICC (and public if interested).
    8. 8. Impact AwarenessAwareness ImpactImpact CommitmentCommitment IntegratedIntegrated StrategicStrategic • Report on 26 KPIs for own operations and 10 for supply chain • All KPIs should have quantitative metrics to report • Almost all reporting should be public • Finalize plan to report on 26 KPIs for supply chain • Report on year-over-year progress on KPI goals for own operations (and i possible, for supply chain) If not progress has been made, explain why. • Develop additional KPI quantitative metrics within key 26 to add depth to reporting • Develop KPIs unique to your business and begin reporting on them
    9. 9. Strategic AwarenessAwareness ImpactImpact CommitmentCommitment IntegratedIntegrated StrategicStrategic • Report on 26 KPIs for own operations and all 26 for supply chain • All KPIs should have quantitative metrics to report • All reporting should be public • Report on year-over-year progress on KPI goals for own operations (and if possible, for supply chain) If not progress has been made, explain why. • Report on additional quantitative metrics associated with KPIs for deeper data • Reportin on KPIs unique to your business, set goals, and track over time
    10. 10. Maturity curve in action tracking transparency performance improvement 1. Awareness 2. Commitment 3. Impact 4. Strategic 5. Integrated L - Working Hours Working on corporate commitment. TBD. L – Child Labor Have had corporate commitment since 2007. Have not reported baseline data, will report to EICC in 2014 H&S – Injury rates Have had corporate commitment since 2007 Reporting casualties and lost days publicly for own operations since 2008 Reporting on 12 key H&S metrics for own operations since 2012, will begin reporting to EICC immediately. Reporting on 5 key H&S supply chain metrics since 2012 for tier 1 suppliers. Built dashboard for reporting and will share with other EICC members H&S key metrics included in Annual report since 2011. ENV – GHG emissions Developing corporate commitment ENV – waste Developed corporate commitment Establishing a baseline in 2014 ENV – wastewater Developed corporate commitment to tracking and mitigation Established wastewater baseline and reported publicly in 2011 Reporting on wastewater by facility and developed intensity benchmarks. Developing long- term broader reporting for supply chain in 2014. ETH – anti-corruption Establishing corporate policies in 2013
    11. 11. EICC’s Annual Reporting • Traditionally have reported on activity across industry, but not much on performance. • Currently performing “data mining” of VAP audits to present an industry performance baseline in 2014 (11 KPIs, 8 connected to GRI indicators). • By 2015, hope to expand to 26 KPIs, and continue to increase data set across industry.
    12. 12. Welcomes you to Sponsored by Exhibitors
    13. 13. www.cdp.net | @CDP CDP: sustainability reporting and ranking Maxfield Weiss, Senior Manager CDP North America EICC Conference October 2, 2013
    14. 14. www.cdp.net | @CDP  Overview  Increasing Investor Interest in CDP  CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)  CDP Data Link to Sustainability Ratings/Rankings  Company Benchmarking & Supplier Ranking Agenda
    15. 15. www.cdp.net | @CDP Mission   To transform the global economic system to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions.
    16. 16. www.cdp.net | @CDP About CDP  CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP has 501(c)3 charitable status in the U.S. via its fiscal agent and sponsor liaison, Rockefeller Philanthropy Advisors
    17. 17. www.cdp.net | @CDP  Overview  Increasing Investor Interest in CDP  CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)  CDP Data Link to Sustainability Ratings/Rankings  Company Benchmarking & Supplier Ranking Agenda
    18. 18. www.cdp.net | @CDP CDP Signatories: Increasing Investor Interest To transform the global economic system to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions. Forests 100 Companies reporting via FFD Water 340+ Companies reporting via CDP Climate change 4100+ Companies reporting via CDP 0 15 30 45 60 75 90 0 150 300 450 600 750 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Assets($trillion) NumberofSignatories CDP Signatories & Signatory Assets: 2003 - 2013 Climate change signatories Water signatories Forests signatories Climate change assets Water assets Forests assets
    19. 19. www.cdp.net | @CDP CDP: Providing data to educate and inform the market
    20. 20. www.cdp.net | @CDP  Overview  Increasing Investor Interest in CDP  CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)  CDP Data Link to Sustainability Ratings/Rankings  Company Benchmarking & Supplier Ranking Agenda
    21. 21. www.cdp.net | @CDP 1. Management Strategies, targets, emissions reduction activities 2. Risks & Opportunities: Regulatory, physical and other 3. Emissions & Energy reporting: Energy use, greenhouse gas emissions 4. Supply Chain module: Customer specific information – e.g. allocating emissions to members The CDP questionnaire inquires about:
    22. 22. www.cdp.net | @CDP Disclosure drives behavior change Data informs investment and procurement analysis and engagement Benchmarking accelerates learning Disclosure process improves performance
    23. 23. www.cdp.net | @CDP Disclosure Score Performance Score Understanding Climate Disclosure & Performance Leadership Index rankings - CDLI & CPLI
    24. 24. www.cdp.net | @CDP Financial performance of leading CDP companies (Global 500) CDP & Sustainable Insights Capital Management link climate change engagement to finical performance Companies with superior CDP disclosure provide:  +5.2% return on equity  +18.1% cash flow stability  +1.6% dividend growth over low scoring peers
    25. 25. www.cdp.net | @CDP  Overview  Increasing Investor Interest in CDP  CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)  CDP Data Link to Sustainability Ratings/Rankings  Company Benchmarking & Supplier Ranking Agenda
    26. 26. www.cdp.net | @CDP CDP data informs ratings and rankings  CDP placed 1st most credible and 2nd most familiar sustainability ratings/rankings in study  ~75% other most familiar, relevant ratings/rankings incorporate CDP data  CDP partners with other organizations and companies that provide research, data products, indices and ratings/rankings to companies, investors and consumers.
    27. 27. www.cdp.net | @CDP CDP’s Link to the Newsweek Green Rankings GREEN SCORE Companies on the S&P 50500 and the Global 500 are ranked by their overall Green Score. This score is derived from three component scores: 1.Environmental Impact Score 2.Environmental Management Score 3.Environmental Disclosure Score* *Assesses the breadth and quality of company environmental reporting, as determined by the level of involvement in key transparency initiatives. These include the CDP.
    28. 28. www.cdp.net | @CDP CDP’s Link to the Newsweek Green Rankings Apple #118 (-68 since 2011) Technology Equipment Apple's Green Score took a hit this year due to the company’s resistance to participating in public reporting via the Carbon Disclosure Project (CDP) for the second straight year. The CDP is a leading environmental nonprofit that publicly surveys the world’s largest companies on their greenhouse-gas emissions, management systems, and reduction Caterpillar #252 (-108 since 2011) Industrial Goods Caterpillar slipped from 144 in 2011 to 252 in 2012, in part due to weakened public-disclosure practices. It failed to complete a submission to the Carbon Disclosure Project this year and did not prepare its corporate responsibility report according to Global Reporting Initiative guidelines (a widely accepted standard). Additionally, the company was fined $2.55 million by the U.S. Department of Justice as a result of engines that did not conform to environmental regulations...
    29. 29. www.cdp.net | @CDP Shareholders Care – Bloomberg Over 1,000,000 CDP data points are downloaded via Bloomberg every 6 weeks
    30. 30. www.cdp.net | @CDP Shareholders Care – Google Finance
    31. 31. www.cdp.net | @CDP New collaborations to streamline corporate sustainability reporting Through an agreement with SAM, from 2013 responding companies will have the option of sharing their CDP data with DJSI thus avoiding duplication (DJSI has incorporated 7 CDP climate change questions) Through an MoU, CDP and GRI are working together to promote the harmonization of sustainability reporting guidelines. (GRI has adopted CDP climate change questions into GRI G4) CDP and SASB signed an MoU to promote greater understanding, visibility and support for the development of disclosure standards for climate change-related and sustainability issues. (CDP’s data will determine the materiality of climate change-related issues in more than 80 industries.)
    32. 32. www.cdp.net | @CDP  Overview  Increasing Investor Interest in CDP  CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)  CDP Data Link to Sustainability Ratings/Rankings  Company Benchmarking & Supplier Ranking Agenda
    33. 33. www.cdp.net | @CDP Companies are utilizing CDP data intelligence tools to:  Establish emissions targets  Identify initiatives of best practice  Benchmark their emissions targets  Assess the risks to the business  Assess the level of detail that competitors are disclosing Companies are Using CDP Data
    34. 34. www.cdp.net | @CDP CDP Supplier Data Use by Purchasing Companies Supplier Evaluation In conjunction with members L’Oreal & Coca-Cola, CDP developed a supplier score card designed to inform meaningful interactions between buyer and vendor. Price Negotiation “When suppliers ask for price increases due to energy cost, we first turn to their CDP reporting history. We require reporting on energy and climate risk management before granting these increases unless there are exceptional circumstances.” Risk Management Marfrig Group uses the data collected from suppliers through CDP Supply Chain to conduct a risk and opportunity analysis on climate risk management.
    35. 35. www.cdp.net | @CDP Thank you. Maxfield Weiss Senior Manager, Disclosure Services 646.517.1457 maxfield.weiss@cdp.net
    36. 36. Welcomes you to Sponsored by Exhibitors

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