Pres sustainability yb mars 2011

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Pres sustainability yb mars 2011

  1. 1. Sustainability & Danone<br />Asian study case<br />Yann Brault, Director CSR AQUA & Asia Pacific Ecosysteme<br />
  2. 2. Sustainability definition<br /> The ability to provide for the needs of the world's current population, without compromising future generations.<br />(www.sustainabletable.org)<br />
  3. 3. Needs?<br />
  4. 4. Corporate Social Responsibility <br />Integrated in the Danone Economic & Social Project<br />SOCIAL<br />SUSTAINABLE<br />ENVIRONMENT<br />ECONOMIC<br />Multi stakeholderprocessensuringsustainable developmentthroughsocial, economical, & environmentalperformance<br />
  5. 5. “The frontiers of the company do not stop at the factory gates…” <br />A. Riboud (1972)<br />
  6. 6. WhatisatstakeFor a foodcompanylike ours ?<br />1 Bnpeople under-nourrished400 Mn sufferingfromobesity<br />84% of people in Brazil and 79% in Spain thinktheir society isunfair<br />40% of foodproducediswasted in USA, 800 000 people going to foodbank network<br />4 Bntonnes of waste per year and 15 Mn wastepickers<br />2 Bnpeople livedthanks to smallfarmingactivity<br />25% of worlwide population living withlessthan 1,25 USD per day<br />210 Mnpeople unemployed<br />+ 200 Mn extremelypoorworkers<br />Bring health through nutrition to the largest number of people<br />6<br />
  7. 7. Ourenvironmentischanging<br />From mass media <br />to mass interaction<br />And thus 78% trust peers re-<br />commendation, only 14% trust <br />brand communication<br />We cannot control the communication about our company<br />Explosion of social networks<br />From one-way communication to dialogue<br />From a brand perspective <br />to a companies perspective<br />From consumer’s <br />to citizen's<br />It’s about the way we create product benefit<br />7<br />
  8. 8. … thiscreatesmoreandmorechallenges<br />Trust on multinationals <br />is fading down…<br />…with growing importance <br />of NGOs<br />48%<br />29%<br />aid or trade?<br />Source: EdelmanTrust Barometer<br />Source:City University of Londen<br />…raising suspicion for <br />our products<br />Therefore: a stakeholder, <br />not a shareholder, world<br />Investors/Shareholders<br />14%<br />CEO‘s 22 countries: When a CEO makes business decisions for his/ her company, which stakeholder should be most important to a CEO‘s decision?<br />All stakeholders are equally important<br />52%<br />Customers<br />13%<br />Society at large<br />11%<br />Employees<br />7%<br />Source: Edelman Trust Barometer 2010<br />Government 3%<br />8<br />
  9. 9. Integrated in Danone MISSION and STRATEGY<br />4 ALL<br />HEALTH<br />Bring health through food to the largest number of people <br />NATURE<br />PEOPLE<br />
  10. 10. Consideredalong the overall value chain…<br />Production<br />Fin de cycle<br />Ventes<br />Un savoir-faire durable dans tous les domaines<br />De nouvelles formes de modèles économiques<br />Minimiser l’impact environnemental par le recyclage<br />Approvisionnements<br />Transports<br />Consommations<br />Assurer la disponibilité des produits en réduisant l’impact environnemental<br />Une responsabilité partagée avec nos fournisseurs<br />Favoriser une alimentation saine et responsable<br />
  11. 11. DANONE CSR approach<br />Social INNOVATION = uniqueness<br />Human Rights<br />Human Relations<br />Environment<br />Consumers<br />Governance relations<br />Sustainable business Foundations/ basics<br />
  12. 12.
  13. 13. 5 Themes & 16 Fundamentals<br />Prerequisite : <br />Minimum age & no forced labour<br /><ul><li>Equal opportunity & diversity
  14. 14. Safety at work
  15. 15. Health at work</li></ul>Human Rights<br /><ul><li> Social dialogue
  16. 16. Working time
  17. 17. Compensation & benefits
  18. 18. Learning & people development</li></ul>Human Relations<br /><ul><li>CO2 footprint
  19. 19. Environmental risks
  20. 20. Raw materials (water, milk, others)
  21. 21. Packaging impact</li></ul>Environment<br /><ul><li> Quality management
  22. 22. Group standards on Nutrition & Health</li></ul>Consumers<br /><ul><li> Business Conduct Policies
  23. 23. CSR principles vs suppliers
  24. 24. Local communities</li></ul>Governance<br />
  25. 25. THE TARGET ACTION <br />
  26. 26. 4 platforms to create social value and sustain our business<br />
  27. 27. Laiterie du Berger<br />GrameenDanone<br />
  28. 28. DANONE for Nature<br />Roll out<br />Agriculture<br />Biodiversité<br />Eau<br />Climat<br />Packaging<br />Réduire<br />Communiquer<br />- 30% CO2/kg 2008 - 2012<br />Lait danone<br />40 ans<br />Natural <br />ingredients<br />3 Plants<br />Mesurer<br />Compenser<br />Fonds Danone pour la Nature<br />
  29. 29. An answer to strategic issues<br />combining business and social opportunities<br />
  30. 30. The Danone EcosystemFund’s Scope<br />19<br />1 - EMPLOYMENT<br />2 – SKILLS AND EMPLOYABILITY<br />3 –MICRO ENTREPRENEURSHIP<br />Finance common purpose initiatives that reinforce Danone Ecosystem<br /> 100 M€ in 2009 + Up to 1% of Danone’s annual profit from 2010<br />
  31. 31. Projectseligibilitycriteria<br />4 MAIN CRITERIA:<br /> Be initiated by a Danone CBU<br /> Create economic and social value inside Danone’s ecosystem<br /> Be replicable and/or scalable<br /> Be jointly created with a not-for-profit organization (NGO for example)<br />20<br />
  32. 32. 5 clusters answering different business & societal challenges<br />SOURCING<br /> Secure the supply of raw materials locally in all countries where Danone manufactures fresh dairy products. Improve the life conditions and incomes of farming families.<br />RECYCLING<br />Structure the sector through the creation of cooperatives to collect and transform packaging materials and give them a market value. Provide income and better life condition to underprivileged population working in the sector.<br />DISTRIBUTION<br />Support alternative micro businesses and small stakeholders. Traditional logistics solutions poorly adapted to supply small quantities of goods to a multitude of small shops. Micro distribution is a means to support economical and social inclusion <br />TERRITORY<br />Have an active contribution to initiatives that bring local economical, social and environmental value to territories where DANONE operations have direct or indirect impact. <br />CARING SERVICES<br />Sensitize and train health care professionals to the link between nutrition and the health of the dependent people, particularly regarding some chronic diseases. Develop awareness of brand amongst health care professionals and KOLs.<br />
  33. 33. AQUA Lestari<br />Empower communities & protect the environment<br />
  34. 34. Sustainability Mapping<br />Water & environment protection<br /><ul><li>weak water management mechanisms in the country
  35. 35. Huge environmental issues as waste management, deforestation, unsustainable agriculture practices
  36. 36. increasing awareness toward global water crisis</li></ul>Water Access & environmental health<br /><ul><li>water business : often accused of being responsible for dryness, over-exploitation of natural resources & not give enough back to surrounding communities
  37. 37. Access to safe water especially for the poor is a growing strategic issue</li></ul>Water & communities <br />Preserve Water<br />Empower Communities<br />Community development: reason why<br /><ul><li> Bad management of the relationship with local communities (especially around factories) is a risk for business.</li></ul>Limit the impact of Packaging & Transportation<br />Operate Green Factories<br />Waste pickers communities empowerment: reason why<br /><ul><li> increasing awareness toward global warming could soon mean increasing public attention on plastic packaging
  38. 38. high risk : Aqua would be an open target</li></ul>Green Plant : reason why<br /><ul><li>growing concern of government
  39. 39. importance of showing the example
  40. 40. Cannot talk about environment protection if not the best in class with our factories</li></ul>Safety on Road: reason why<br /><ul><li> Accidents with Aqua trucks
  41. 41. Overload and over fuel consommation</li></li></ul><li>Lestari, Sustainability Model<br />Brand Diamond<br />Sustainable Water Management<br />“AQUA Community” Investment<br />Packaging<br />Recharge Area<br />Transportation<br />AQUA employees-ambassadors<br />Urban Area<br />
  42. 42. How can Sustainable Development support our brand communication?<br />1<br />Water resource management<br /><ul><li> Expertise = major trigger for AQUA superiority & relevance
  43. 43. Fully integrated in brand diamond</li></ul>AQUAselects and keeps natural goodness from the original source in every single drop “ <br /><ul><li> Selection – rigorous selection process
  44. 44. Protection– nothing between you and nature
  45. 45. Preservation –joint collaboration with local communities
  46. 46. Can be dialed up along with our actions</li></ul>A ‘reason why’<br />Uniqueness of origin<br />Protection policies<br />Natural purity<br />
  47. 47. How can Sustainable Development support our brand communication?<br />2<br />Protect the <br />environment<br /><ul><li> Not yet hot button for consumers
  48. 48. Take advantage of Lestari initiatives
  49. 49. … need to cascade through KOLs pyramid
  50. 50. integration brand + corporate
  51. 51. media integrated strategy
  52. 52. Anticipate future
  53. 53. Crack consumer interest + how to speak
  54. 54. packaging</li></ul>A reassurance<br />We are responsible<br />…and committed to protecting the planet<br />
  55. 55. How can Sustainable Development support our brand communication?<br />3<br />Societal projects<br /><ul><li> 1 for 10 program, as a part of wash
  56. 56. High contributor in past 3years for AQUA perception
  57. 57. A distant leader  a leader that cares for all
  58. 58. Walk-the-talk is key
  59. 59. no promotional speak
  60. 60. long term commitment
  61. 61. Multi impact :
  62. 62. proven to be sales trigger + equity builder
  63. 63. contributed to remove “black spots “ from brand DNA </li></ul>Personality<br />Image reinforcement<br />Consumer involvement<br /><ul><li>Postcards from aqua employees from 13 plants, 19 depo
  64. 64. 10 employees will go to NTT to see program
  65. 65. schools programs in 1000 schools
  66. 66. 30 000 beneficiaries
  67. 67. 70 000 in 2011</li></li></ul><li>Toward sustainable watershed management… <br />An ambitious community based and integrated approach ,which consist on 3 components<br />Agro Forestry<br />Watershed Conservation<br /> Organic Rice<br />Micro enterprises<br />Waste Management<br />Water Access, Sanitation & Hygiene<br />Sustainable Agriculture<br />
  68. 68. More than 30 on-going program in 18 locations<br />By Sector<br />
  69. 69. Water Access, Sanitation & Hygiene (AMPL)<br />Today, more than 35.000 people<br />Target 2007-2011: 75.000 people <br />BOGOR<br />* 6.100 benef.<br />* 2009 - 2010<br />SERANG<br />* 4.100 benef.<br />* 2009 - 2010<br />BEKASI<br />* 800 benef.<br />* 2009-2010<br />SUKABUMI<br />* 9.800 benef.<br />* 2009-2011 <br />Partners<br />PESAT<br />BERASTAGI<br />* 800 benef.<br />* 2009-2010<br />KLATEN<br />* 2.600 benef.<br />* 2009-2010 <br />NTT <br />* 50.000 benef.<br />* 2007 - 2011<br />LAMPUNG<br />* 400 benef.<br />* 2009-2010<br />KEBUNCANDI<br />* 400 benef. <br />* 2009-2010 <br />SUBANG<br />* 1.800 benef.<br />* 2009-2011<br />Resources : Google Earth<br />
  70. 70. Watershed Conservation<br />Community Forest<br />>400k trees planted, target 300 k/year<br />Organic farming communities<br />Waste Management models<br />Environmental Awareness in 100 schools<br />25 “HutanSekolah” (tree nurseries)<br />SIBAYAK Mountain<br />* Organic Farming<br />* Waste Management<br />* Fruit & wood trees<br />* School Nursery (5 000)<br />KELABAT Mountain<br />* Fruit & wood trees<br />* School Nurseries (15 000)<br /><ul><li>Community Forest
  71. 71. Hutan Mangrove</li></ul>SALAK Mountain<br />* Fruit & wood trees<br />* School Nurseries (40 000)<br />* Community Forest<br />* National Park Rehabilitation<br />MERAPI Mountain<br />* Fruit & wood trees<br />* School Nurseries (15 000)<br />Community Forest<br />National Park Rehabilitation<br />JABUNG Mountain<br />* Fruit & wood trees<br />* School Nursery (5 000)<br />TANGKUBAN PERAHU Mountain<br />* Fruit & wood trees<br />* School Nursery (15 000)<br />BATUR Mountain<br />* Waste Management<br />* Organic Farming<br />ARJUNO Mountain<br /><ul><li>Community Forest
  72. 72. Hutan Mangrove</li></ul>* National Park Rehabilitation<br />Resources : Google Earth<br />
  73. 73. The “Reforesting Soap”<br />Fires happen every year caused by agricultural activities, hunting, or charcoal production = 400 Ha forest in arjuna mount damaged / year<br />Danone Aqua contribute to solve this problem with “Parenting forest program” involving all stakeholder in arjuna mount ( Perhutani, government, LMDH , Kaliandra foundation ). In 2008 -2009 more than 70.000 trees planted .<br />
  74. 74. A Social Business Model to empower farmers<br />Besides trees planting , activity in parenting forest is economic empowerment for “Forest Village Community", one of activity is production soap from Sirih oil.<br />Demand from local market is 2000 pcs/ month<br />Production capacity from community 1500 pcs/month<br />In 2010 – 2011 will increase capacity up to 5000 pcs/month<br />(invest in oil machine and soap production facilities)<br />
  75. 75. KLATEN: PUSUR RIVER WATERSHED MANAGEMENT<br /><ul><li>33 villages, > 5000 Ha critical lands</li></ul>Water stream<br />Upstream Area<br />2. PUSUR Irrigated Area<br /><ul><li> Existing farmers’ organization embryo
  76. 76. 47 villages, 4000 Ha irrigated, 9000 families</li></ul>4. Karanglo Village Farmer’s Groupe<br />3. KAPILALER Irrigated Area<br /><ul><li>exisitingKapilaler farmers’ organization (CIRAD)
  77. 77. 17 villages, 800 Ha irrigated, 2500 families</li></ul>Downstream<br />Vegetal protein/porridge ingredient<br />(Rice, soy bean)<br />Figure 1. Farmers’ proposed organizations in Pusur River watershed<br />
  78. 78. Program “GunungSalak Lestari” Empower communities & protect the environment<br />Al-Amin<br /><ul><li>50 Ha Green Belt(77.000 trees)
  79. 79. Sustainable Agro forestry (Model “Tumpang Sari” organic)
  80. 80. Partnership with National Park, local government and Al-Amin</li></ul>Conservation Forest<br />Organic Market<br />Green Belt<br />Productive “Community Forest”<br /><ul><li>60 Ha critical land in recharge area,120.000 wood trees
  81. 81. Sustainable Agro forestry
  82. 82. Partnership with local government and Al-Amin</li></ul>AQUA Conservation PArk<br />
  83. 83. Merci<br />TerimaKasih<br />
  84. 84. CSR Operating System<br />Blackburn, William R. 2007, The Sustainability Handbook<br />
  85. 85. DANONE Fund for Nature<br />FEATURES<br />What?<br />A donation fund to offset overall Danone carbon <br />fooprint through CO2 compensation programs for brands<br />Targets?<br />Nature and Agriculture conservation<br />Scope?<br />Actions at Group level<br />Who?<br />Bernard Giraud Sustainibility VP + Myriam Cohen GM Nature<br />Projects<br /><ul><li>NGO Partnerships : with UICN for Group’s projects / with Ramsar for projects on wetlands
  86. 86. Water brand neutrality by actions on wetlands</li></ul>Figures<br /><ul><li>2009 Fundamount : 3 M €
  87. 87. 120 Millions mangroves replanted within the1st project OCEANIUM / Sénégal</li>

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