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ASSE PDC 2011 CSR for the Safety Professional


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

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ASSE PDC 2011 CSR for the Safety Professional

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