Social metrics are the new vanguard of sustainability. In a world of fast-paced communications, businesses need social impact data to find improvement opportunities and differentiate their products in the market. Consumers expect transparency of product impact on environmental and social issues. Until now, there has not been a practical business tool that can be used by companies to assess the social impacts of their products. Introducing the 'Handbook for Product Social Impact Assessment'; developed by PRé Sustainability and a Roundtable of 12 leading companies: Ahold, AkzoNobel, BASF, BMW Group, DSM, L'Oréal, Marks & Spencer, Philips, RB, Steelcase, The Goodyear Tire & Rubber Company, and a chemical company. The Handbook provides companies with a tool to understand risks and opportunities for product development, supply chain selection, and collaboration, and to improve reporting and communication in a credible way. What You Will Learn: Uncover why and how the social footprint of your products affects your business. Learn how social footprinting can help you to understand possible risks and improvement opportunities for product development, supply chain selection, and collaboration. Gain insights into unique corporate cases: learn how BMW, DSM and other members applied the methodology to assess the social impacts of their products. Learn about the most common challenges expected and how to tackle them. Gain insights into the next phase for development of the Product Social Footprinting methodology and the Round Table for Product Social Metrics.

1. Start Analyzing the Social Impacts of Your Products
Why and How
PRé Sustainability || BMW Group || DSM
October 2014

2. Social Footprint.
WHY do we want to measure social impacts of
products ? | TRENDS
Jacobine Das Gupta ‐ DSM

3. Trends
 Consumers want guilt‐free products
GOOD FOR
OTHERS
GOOD FOR
PLANET
GOOD
FOR ME

4. Trends
 Transparency requested about a product origins, conditions, impact

5. Trends
‘If you can’t
measure it,
you can’t
manage it’
Peter Drucker
 Companies want to make impacts measurable and track progress

6. How does it reflect in the strategy of companies?

7. DSM
Our purpose is to create brighter lives
for people today and generations to come
Health Nutrition Materials
ECO+: Products with a measurably better environmental footprint
People+: Products that measurably improve people’s lives

8. Management of Corporate and Product Footprint
strengthens BMW Group‘s Sustainability
Corporate Strategy
BMW Group is the most sustainable automotive company
Sustainability Strategy E‐Ressort.
Environmental Economic Social
Goal: Improvement of environmental impacts in the complete product life cycle.

9. WHY we started the Roundtable?

10. Why the Roundtable for Product Social Metrics
 Companies wanted to measure and assess

11. Why the Roundtable for Product Social Metrics
 Practical and shared methodology was missing

12. Why the Roundtable for Product Social Metrics
 Experts from 12 companies joined forces to advance this area

13. 15 min | The FRAMEWORK to Measure Social Footprint
of Products | METHODOLOGY
João Fontes ‐ PRé Sustainability

14. Product Social Footprint
 Measures at product level as opposed to corporate

15. Product Social Footprint
 Increases transparency and allows comparing products

16. Product Social Footprint
 Can cover the entire life cycle
supply
chain consumption end of life

17. Product Social Footprint
 Multiple applications
supply
chain consumption end of life
Supply chain management
Risk assessment
Product design
Waste management
Social and community investments

18. What product social footprint measures
Impacts on
Workers Consumers Communities
along the life cycle of a product or a service

19. What product social footprint covers
>> starting with the company
Company
Production
Workers
Local community

20. What product social footprint covers
>> then the supply chain
Workers
Company
Local communities
Production
Supply chain
Suppliers

21. What product social footprint covers
>> then the supply chain
Supply chain Company
Production
Materials Suppliers Design Production Sales
Workers
Local communities

22. What product social footprint covers
>> plus impacts on the consumers
Supply chain Company
Production
Materials Suppliers Use
Workers
Consumers
Local communities
After the gate

23. What product social footprint covers
>> and after consumption
Supply chain Company After the gate
Production
Materials Suppliers Design Production Sales Use Recycle
Workers
Consumers
Local communities

24. How to measure product social footprint
Handbook by the Roundtable for Product Social Metrics
[September 2014]
g. applicability, balance, feasibility
Developed by 12 leading companies

25. How to measure product social footprint
Handbook by the Roundtable for Product Social Metrics
[September 2014]
g. applicability, balance, feasibility
• 19 Social Topics
e.g. work‐life balance, well‐being, local capacity building
• about 2 Performance Indicators per Social Topic
• Footprint Method
based on the companies approaches and
supporting quantitative and qualitative data

26. How to measure product social footprint
>> Social Topics

27. How to measure product social footprint
>> Data
Quantitative
data
&
Qualitative
data

28. How to measure product social footprint
>> Method
: Data <‐> Reference Value
: Data <‐> Reference Scale
Quantitative
approach
&
Scales‐based
approach
Quantitative data ‐‐>
Quantitative and Qualitative data ‐‐>

29. How to measure product social footprint
>> Method
Referencing
Quantitative
approach
Scales‐based
approach
: Data <‐> Reference Value
: Data <‐> Reference Scale

30. How to measure product social footprint
>> example: measuring Workers’ Training and Education
Referencing
1 hour of training per worker during the reporting period

31. Results: Social Footprint on a Dashboard
Product life cycle
Stage 2 Stage 3
Stage 1 …

32. Results: Social Footprint on a Dashboard

33. 10 min | SHARING INSIGHTS |
Insights from one of the pilots
Marzia Traverso ‐ BMW Group
Jacobine Das Gupta ‐ DSM

34. Insights from the pilot
 Product: plastic oil pan used in BMW cars
made of a material produced by DSM
 About the Methodology:
• Assessment of social impact of a product along its value chain is feasible
• Both scales‐based and quantitative approaches are possible
• Product data or allocated corporate data can be used

35. Insights from the pilot
Life cycle stages
Tier 2 ‐ N Tier 1 Polymers Moulder Assembly Transport Retailer Consumer Disposal
Workers
Training
%age of workers
trained during the
reporting period
Out of
Scope
1 2 1 2 1 1 NA
Out of
2 Scope

36. Insights from the pilot
 Added Value for businesses:
• Makes social impact of products measurable and visible
• Allows comparing the social performance of the life‐cycle stages
• Allows future comparison with other products in category group
• Identifies opportunities to improve social performance along the life cycle

37. Insights from the different pilots
The methodology proposed is
 Feasible
 Understandable
 Applicable for different sectors
Benefits for business include:
 Identification of areas for improvement
 Identification of opportunities for product development

38. 5 min | What’s NEXT | WRAPUP
João Fontes ‐ PRé Sustainability
Marzia Traverso ‐ BMW Group
Jacobine Das Gupta ‐ DSM

39. Product Social Footprint adds value
 Makes both positive and negative impacts measurable and visible
 Provides detailed figures for communications and decision‐making
 Supports companies in multiple areas
supply
chain consumption end of life
Supply chain management
Product design Waste management
Risk assessment
Community investment
Marketing and Communications

40. Roundtable for Product Social Metrics ‐ Phase 3
 We are just starting the journey
 Opportunity to collaborate and improve

41. Roundtable for Product Social Metrics ‐ Phase 3
 Roundtable Phase 3 about to start
We welcome industry companies to join the group!

42. 15 min | Q&A
SB Moderator initiates and lead

44. João Fontes
www.product‐social‐impact‐assessment.com
www.pre‐sustainability.com/social‐footprint
fontes@pre‐sustainability.com