Csr measuring outcome


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Csr measuring outcome

  1. 1. Measuring Outcome What  to  measure  and  its  ra@onale    Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  1  
  2. 2. Public Private PartnershipPar@cipatory  approaches  in  environmental  economics   Business-centric approachKnowledge ensures market participation Leverage localrepository for and fit-for-purpose projects as a marketcarbon abatement, enabler activity toadaptation and foster private sectormitigation participation Generate value forEconomic market participantsdevelopment but in the form ofwith socio- environmentalenvironmental Specifically tailored to financecompetencies the local culture andMeasuring  Performance.  April  4th  2013     knowhow DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  2  
  3. 3. Green Economy for Sustainable DevelopmentA  low  carbon  development  Think  Tank   Vision Support DCCE was launched on on Jan. 18th 2011 during WFES “Private sector market enabler” by HH the Prime Minister and HE Ban Ki MoonMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  3  
  4. 4. Multi-Industry ApproachPrivate  sector  lead  and  focused  –  UAE  case  study   Energy  Cluster  created   Private-­‐Sector-­‐lead,   to  foster  Green   supported  by  key   Economic  Growth   leaders  in  u@li@es,   amongst  the   smelter  and  refinery   stakeholders   Structured  to  maximize   Close  coordina@on  with   economic  benefits   Interna7onal   through  Porter’s   Organiza7on  and   Economic  Clusters   especially  UNDP   Model  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  4  
  5. 5. Green House Gas Inventories Managing  the  Dubai  GHG  inventory  and  now  conduc@ng  a  UAE-­‐wide  Inventory   > Methodologies M   R   V   • GHG  Inventory   • Mapping  and   • Strategy  and   Analysis   Targets   . Total greenhouse gas emissions, Mt CO2e Forestry ▪  Establish Buildings (Direct emissions) ▪  Build picture of   Waste Agriculture 2011 emissions ☐ Transport “business as usual” (BAU) bottom-up, Power and water emissions forecast of key Industry (Direct emissions) 2005 2010 2015 2020 2025 2030 baseline drivers through 2030, and assessment of Abatement cost € per tCO2e 60 •  Cost per tonne potential scenarios ▪  Define 50 40 30 20 of abatement, requirement for relative to BAU 10 0 5 10 15 20 25 30 35 38 -10 •  -20 cost curve and Tonnes of -30 -40 -50 link to potential -60 -70 -80 -90 abatement that global this lever could -100 measures offer ▪  Ease  of  c apture  (in  near-­‐term) Readily achievable More challenging Difficult Decide where ▪ Cost  today AssessNegative ▪ Appliances and electronics ▪ Geothermal, small hydro ▪ LED lighting energy efficiency ▪ Engine efficiency, LDVs1 ▪ Tillage and residue mgmt ▪ New build lighting controls ▪ Energy efficiency packages, ▪ Chemical process focused policy in ▪ Cropland nutrient mgmt commercial new build optimization ▪ Energy efficiency, oil & gas ▪ Retrofit lighting controls ▪ Methane leakage prevention, ▪ Solid waste (excl. landfill implementation oil & gas gas flaring) ▪ Fuel shift, industry ▪ Cogeneration, other industries short term by prioritiesModest ▪ Landfill gas flaring ▪ Solar & wind2; smart grids ▪ Nuclear ▪ Increased bus transport ▪ Oil to gas shift, power ▪ Biofuels – 2nd gen. domestic ▪ Reduced flaring, oil & gas ▪ Energy efficiency packages, ▪ Cogeneration, oil & gas residential new build weighing cost of ▪ Biofuels – 1st gen. imported ▪ Reduced deforestation ▪ Solar water heaters ▪ Energy efficiency, other industries ▪ Agronomy practices, grassland management ▪ Soil restorationHigh ▪ Afforestation/ reforestation, forest mgmt ▪ ▪ ▪ Increased subway transport Wastewater treatment Engine efficiency, HDVs1 ▪ ▪ Carbon capture and storage Livestock feed supplements and vaccines abatement against ease of implementation ▪  Determine ▪  Based on overall feasibility Abatement “low- assessment, carbon” determine overall growth path for emissions under 2005 2010 2015 2020 2025 2030 path the “low-carbon” Measuring  Performance.  April  4th  2013     scenario DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  5  
  6. 6. UAE Aviation State Action PlanDeveloping  an  integrated  low  carbon  roadmap  for  UAE  Avia@on   Development  of    CO2  plan   Monitoring  and  Repor7ng   Mi7ga7on  strategy     §  Methodology  and  criteria   §  Data  streams  op@miza@on   §  Descrip@on  of  ER  measures   §  Defini@on,  formats  and   §  Standardized  data  policy   §  Cost  and  financing  of  measures   procedures   §  Current  and  forecasted  ac@vi@es   §  Assess  CO2  reduc@on  over  cost  of   §  Baseline  emissions   §  Common  areas  of  development   ER  measures   §  Growth  and  expansion   §  Suitability  to  MBM,  NAMAs  or   §  Timing  of  measures     §  Stakeholder  mapping   Sectorial  approaches   §  Legisla@ve  outlook   ü  Avia%on  Sector  GHG  Inventory   ü  M&R  Dra6  Policy   ü  Compendium  of  ER  measures  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  6  
  7. 7. Selected  Por]olio  Ac@vi@es  Diverse  ac@vi@es  with  emission  reduc@on  core  competencies   Dubal  GTX   Dubal  D18+   Desalina@on   Regenera@ve  Burners   •  Steam  Op@miza@on  across  the  en@re  plant   •  Emission  Reduc@on  in  Aluminum   •  Energy  efficiency  of  desalina@on  Pumps   •  Use  of  waste  gases  in  mel@ng  furnaces  in   •  350,000  tCO2  p.a.   Produc@on  based  on  new  produc@on   through  the  use  of  newer  technology   lieu  of  cold  air  burners   process  architecture   •  15,000  tCO2  p.a.   •  35,000  tCO2  p.a.   •  250,000  tCO2  p.a.   Green  Building  PoA   CFL   Solar  Farm   Waste  Heat  Recovery   •  Energy  efficiency  in  Abu  Dhabi  Municipality   •  Free  distribu@on  of  CFL  bulbs  to  Dubai   •  Installa@on  of  a  10MW  solar  power  plant   •  U@liza@on  of  waste  heat  from  kiln   •  196,000  tCO2  p.a.   residents  (includes  EK  staff   on  the  Dubai  Al  Ain  road   produc@on  to  generate  15  MW  of   accommoda@on)   •  14,000  tCO2  p.a.   renewable  power   •  60,000  tCO2  p.a.   •  75,000  tCO2  p.a.   Inlet  Coolers   Absorp@on  Chillers   Alterna@ve  Fuels   Dubai  Municipality  STP   •  U@liza@on  of  pre-­‐cooling  stackable  units  in   •  U@liza@on  of  heat  as  primary  mean  to   •  U@liza@on  of  Refuse  Derived  Fuel  in   •  Capture  CH4  and  convert  it  in  bio-­‐cng  for   power  genera@on  to  bring  inlet  to  ISO   generate  district  cooling  power  for  en@re   industrial  furnaces  as  fuel  replacement   fleet  purposes   performance   Dubal  facility   •  62,000  tCO2  p.a.   •  85,000  tCO2  p.a.   •  40,000  tCO2   •  45,000  tCO2    Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  7  
  8. 8. “What  gets  measured,  gets  Done.”     “…  the  general  tendency  in  many   companies  is  to  evaluate   performance  primarily  on  the  basis   of  cost  and  efficiency.  There  are   many  more  criteria  to  judge…”       Peter Drucker (1909 – 2005)Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  8  
  9. 9. Defining the outcomeLessons  leant  from  project  management  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  9  
  10. 10. Reasons for measuring performanceEfficiency  and  stakeholders   60 % of respondents 50 40 30 20 10 0 Primary reason for measurement Assessing Performance Operational Efficiency Aligning Employees Behaviours Financial Control Strategic Decision Making External Reporting Strategic Planning Compensation/Rewarding Validating Strategy Neely, A.D.; Yaghi, B. and Youell, N. (2008) “Enterprise Performance Management: The UK State of the Art”, Oracle and Cranfield School of Management.Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  10  
  11. 11. How do countries differ?A  compara@ve  approach   Australia China Japan UK USA Performance Performance Aligning Employee Performance Aligning Employee Assessment (64.37%) Assessment (77.55%) Behaviours (53.40%) Assessment (58.82%) Behaviours (36.59%) Aligning Employee Aligning Employee Performance Improve Operational Improve Operational Behaviours (59.77%) Behaviours (35.71%) Assessment (44.66%) Efficiency (52.94%) Efficiency (34.96%) Improve Operational Improve Operational Improve Strategic Aligning Employee Performance Efficiency (56.32%) Efficiency (35.71%) Decision Making Behaviours (43.44%) Assessment (34.15%) (43.69%) Compensation and Improve Strategic Validating Strategy Financial Control Compensation and Reward (35.63%) Decision Making (40.78%) (39.82%) Reward (22.76%) (31.63%) Improve Strategic Compensation and Strategic Planning Improve Strategic Improve Strategic Decision Making Reward (29.59%) (37.86%) Decision Making Decision Making (33.33%) (35.91%) (21.14%) Financial Control Strategic Planning Financial Control External Reporting Financial Control (32.18%) (28.57%) (29.13%) (32.87%) (19.51%) Strategic Planning Financial Control Improve Operational Strategic Planning External Reporting (26.44%) (20.41%) Efficiency (25.24%) (30.77%) (14.63%) External Reporting Validating Strategy External Reporting Compensation and Validating Strategy (20.69%) (17.35%) (22.33%) Reward (24.20%) (13.82%) Validating Strategy External Reporting Compensation and Validating Strategy Strategic Planning (18.39%) (16.33%) Reward (22.33%) (19.00%) (13.01%)Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  11  
  12. 12. Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  12  
  13. 13. Green Economy for Sustainable DevelopmentWhat  does  the  policy  wishes  to  achieve   > Pursue  a  low-­‐carbon  economy   Although  we  are  environmentalist  at  heart,  Dubai’s  core  competency  is  its   business  acumen  and  should  focus  its  efforts  towards  developing  the  synergy   between  business  sector  lead  environmental  ini@a@ves.   Whilst  all  governments  follow  the  typical  top  down  approach,  Dubai  would  follow   the  economic  development  ODA  model  (government  invest  1  dollar  to  achieve   100  dollars  of  GDP)   Develop  a  long  term  plan  to  carbon  intensity  of  GDP  through  the  pursuit  of   economy-­‐wide  measures.   Pursue  a  best  living  environment  approach  in  line  with  UAE  2021   Develop  a  set  of  measures  aimed  towards  anrac@ng  best-­‐prac@ces  and  climate   change  related  development  to  the  Emirate  of  Dubai  by  leveraging  the     Ø  Sources  of  finance     Ø  Technology   Ø  Intellectual  Property  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  13  
  14. 14. Rationale for the PolicyWhy  is  climate  change  an  issue   o  Resources  are  u@lized  inefficiently,   which  means  despite  growth,  the   environmental  cost  is  hidden  and  is  not   taken  into  account   o  The  environmental  cost  will  have  to  be   assessed  and  responsibili@es  assigned  to   avoid  an  event  whereas  a  global   agreement  is  counterproduc@ve  to   Dubai’s  economy   o  The  global  communi@es  are  converging   o  Global  environmental  concerns  can  have   drama@c  effects  on  the  local  economy,   star@ng  form  the  loss  of  valuable  land,   resources  and  infrastructures   o  The  pursuit  of  energy  leadership  is  a  key   opportunity  seeking  complementarity   form  the  business  sector  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  14  
  15. 15. ComparabilityWhich  project  is  best  for  the  Environment?   Renewables   Demand  Side  Management   Case  study  10  MW  PV  Solar  Park   Case  study  1  million  free  CFL  bulbs   Investment:  USD  20m   Investment:  USD  2.5m   Emissions  Reduc@ons:  12,000  tCO2  per  annum   Emission  Reduc@ons:  60,000  tCO2  per  annum    Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  15  
  16. 16. Context of measurement • Performance  Management  is  a   Performance  Measurement  is  a  process  by  which  a   systemic  link  between  company   business  unit  objec7vely  assesses  and  evaluates  the   strategy,  Investments,  and   extent  to  which  it  is  accomplishing  a  specific  objec7ve,   processes.    Performance   goal,  or  mission.  Performance  measurement  alone  is   Management  is  a  comprehensive   incomplete.       management  process    Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  16  
  17. 17. Outcome objectivesWhat  is  the  ul@mate  success  factor  by  stakeholder   Dis@nguish   Enables  decision   Promote   Manage  by  results   between  program   making   accountability   success  and  failure   Allow  for   Provide  means  of   organiza@onal   Jus@fy  budget   Op@mize   performance   learning  and   requests   Investments   comparison   improvement   Establish  catalysts   Raise  early   Fulfill  mandates   And  so  on…   for  change   warnings  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  17  
  18. 18. Common DenominatorWhy  do  we  use  CO2e   GWP   GWP   Chemical   Emission (IPCC  2nd  Assessment   (IPCC  4th  Assessment   Sources Formula Report)   Report)   Carbon  dioxide CO2 1 1 Combus@on  Processes Landfills,  coal  mining,  waste   Methane CH4 21 25 water  treatment,  biomass   combus@on Agricultural  soils  and  nitric   Nitrous  oxide N2O 310 298 acid  produc@on Subs@tutes  for  ozone   Hydrofluorocarbons HFCs   11,700   14,800 deple@ng  substance,  semi-­‐ conductor  manufacturing Electrical  transmission  and   Sulphur  hexaflouride SF6 23,900 22,800   distribu@on,   Subs@tutes  for  ozone   Perfluorocarbons PFCs   6,500  -­‐  9,200   7,390  -­‐  12,200 deple@ng  substance,  semi-­‐ conductor  manufacturingMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  18  
  19. 19. Carbon BudgetHow  much  have  we  spent?  (in  Gt  CO2e)   Budget       Emission  Per   Emissions  to   Balance  to         (21st  century)   year   Dec.  31st  2012   Dec.  31st  2099  CO2   1,456   14.6   175   1,281  Receivables  CO2  Payable   1,456   30   360   1096  Difference   206%   25%   75%   Only 40% of human CO2 emissions are being absorbed, mostly by vegetation and the oceans. The rest remains in the atmosphere. A natural change of 100ppm normally takes 5,000 to 20.000 years. The recent increase of 100ppm has taken just 120 years.Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  19  
  20. 20. PRISM approachValue  chain  analysis   Processes   • (What  capabili@es  do  we   need  to  operate  and   enhance  these  processes?)   Strategies   Capabili@es   • (What  cri@cal  processes  do   • (What  contribu@ons  do  we   we  require  if  we  are  to   require  from  our   execute  these  strategies?)   stakeholders  if  we  are  to   maintain  and  develop   these  capabili@es?)   Stakeholder   Stakeholder   Sa@sfac@on   Contribu@on   •   (Who  are  the  key   stakeholders  and  what  do   they  want  and  need?)   PRISM   • (What  strategies  do  we   have  to  put  in  place  to   sa@sfy  the  wants  and   needs  of  these  key   stakeholders?)  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  20  
  21. 21. Stakeholder perspectivesThink  of  a  u@li@es  provider…   Stakeholder  Sa7sfac7on   Stakeholder  Contribu7on   (Stakeholder  Wants  &  Needs)   Stakeholders   (Organiza%on  Wants  &  Needs)   Customers  &   •  Fast, Right, Cheap & Easy •   Trust,  Loyalty,  Profit  &  Growth   Intermediaries         •  Purpose, Care, Skills & Pay Employees   •   Hands,  Hearts,  Minds  &  Voices         •  Trust, Loyalty, Profit & Growth Suppliers   •   Fast,  Right,  Cheap  &  Easy   •  Legal, Fair, Safe & True Regulators  &   •   Rules,  Reason,  Clarity  &  Advice   Communi7es   •  Return, Reward, Figures & Faith Investors   •   Capital,  Credit,  Risk  &  Support  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  21  
  22. 22. Setting Indicators Mission: Protect people and property Strategic Goal #1: Reduce damage caused by motor vehicle accidents Annual performance goal 1A: Reduce serious accidents by 20% per 100 km traveled by 2012 Measure: Number of accidents per 100 km traveledMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  22  
  23. 23. Before we can map your strategy . . .Quan@fiable  strategic  objec@ves   Make sure objectives Too o Improve  Costumer   have a direct vague Service   relationship to goals and goals have a direct relationship to   mission and o Reduce  Costumer   values. More collec@on  @mes  by  30%   precise by  year  end  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  23  
  24. 24. BSC in a NutshellGreen  Scorecards?   •  A  framework  for  breaking  strategy  into  ac@onable   components  called,  Strategic  Objec%ves.     •  An  effec@ve  Strategic  Management  System  for  aligning   day-­‐to-­‐day  work  to  an  organiza@on’s  vision  and  strategy.     •  An  integrated  framework  for  informing  strategic   budge%ng,  and  allowing  the  organiza@on  to  learn  what   works  and  to  become  more  strategy  focused.     In  other  words,  the  BSC  is  an  integrated  performance-­‐based   strategic  planning  and  management  system.  It  is  not  just  a     measurement  system!  Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  24  
  25. 25. Examples from Humanitarian Industry Strategic Performance Objectives (SPOs) are key to understanding the BSC. They represent the building blocks of the BSC. Each one of you should familiarize yourself with the 10 SPOs.Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  25  
  26. 26. Cascading and defining outcomes These are examples of activities designed by the OPCOs to contribute to the corporate strategy, based against impact, cost, complexity andMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  26   constraints
  27. 27. Dashboard Monitor only the yellow and red flags…. … from the OPCO dashboard…. … Click on any traffic light to receive detailed info Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  27  
  28. 28. Planning is key Each indicator is explained in details in the Indicator Sheet The 2008 corporate targets are included on each indicator sheet Click on the“See details byRO” link to getan overview of the regionaltargets for the indicator in questionMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  28  
  29. 29. Keep it simple The Traffic Lights Status page gives you the traffic lights distribution by perspective, by region and by Strategic Performance Objective Traffic lights distribution status is updated when new results are available on the BSC site. The latest update can be seen below the tableMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  29  
  30. 30. Daily routines To quickly access detailed results by perspective or by region use the appropriate dropdown menu The main BSC dashboard gives you a general overview of UNOPS performance at any given point in time. Performance status for each indicator and region are displayed on the BSC dashboardMeasuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  30  
  31. 31. Reflections 1.  Don’t start with what should we measure. 2.  Instead start with what questions do we want to be able to answer. 3.  The questions that matter for different organisations are context dependent. 4.  So do not look for standardised sets of measures that can be used for CSR. 5.  We can, however, look for standardised frameworks – such as the Performance Prism – to help structure our thinking.Measuring  Performance.  April  4th  2013     DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  31  
  32. 32. GET INSPIREDIvano  Iannelli  |  pril  4  2013 Measuring  Performance.  A ivanoi@dcce.ae  |  www.dcce.ae   DCCE  Confiden@al:  Do  not  distribute  without  prior  explicit  approval  .  Slide  32   th