This document discusses applying social metrics to product evaluation. It outlines the Triple Bottom Line approach of considering people, planet, and profit. It then discusses the development of social metrics and defining relevant social stakeholders, themes, and aspects. Creating social metrics provides business value by increasing supply chain visibility, managing risks, and allowing for sustainability communication. The document advocates considering social, environmental, and financial indicators together rather than viewing them as a trade-off. It also discusses collaboration between PRé and DSM to develop a common approach to measuring social impacts across a product's lifecycle.

1. Applying social metrics to product evaluation
September 28, 2012

2. Market Trend – a demand for transparency
2

3. The Triple P Approach (aka the triple bottom line)
Planet Planet People Planet People
People
Profit
Profit Profit
1980’s to mid 1990’s late1990’s 2000’s, balance?
3

4. Environmental product evaluation
• Consensus on LCA methods
and approaches
• Increased customer
demand and familiarity w/
footprints
• Acknowledgement that cost
efficiencies and reduced
environmental impacts are
achievable
4

5. DSM: Bright Science, Brighter Living
“We can not be successful in a
society that fails.”
Feike Sijbesma, CEO
5

6. Social impacts: a driver for innovation and growth
How can a business create
profitability while
reducing its
environmental impact and
increase the quality of life
for people involved in
making and consuming
the company’s products?
Find the balance
6

7. Developing the approach
Get Gain
Road-test Standardize
Acquainted Cooperation
Keep it simple!
7

8. What makes the social metrics approach unique?
Supply Chain
Value Chain
Includes the Value Chain
Along the Lifecycle
+
Both + and – Impacts
Allows for Improvement
Addresses Employees, Communities, Consumers
-
8

9. Defining social stakeholders, themes & aspects
Stakeholder Group Themes Aspects
Healthy and safe working
conditions
Working
Employees Remuneration
Conditions
Prevention of underage
workers
Healthy and safe living
Community conditions
Local Communities
Development Local employment
Provision of education
Health and Well- Health condition
Consumers
being Comfort
9

10. Creating business value
• Prerequisites: compliance with company values and
international standards and internal coordination is
essential for acceptance
• Increases visibility into the supply chain
• Helps companies identify and manage potential risks
• Creates new opportunities for innovation and value
propositions
• Allows for enhanced sustainability communication to
stakeholders
10

11. Environmental or financial or social indicators?
Planet People
Profit
11

12. Not a trade-off
Planet People
Profit
12

13. PRé and DSM’s social roundtable efforts
• Conceived in early 2011 (PRé and several industry members)
• Proposes a common approach for measuring and assessing
the social impacts of products from a life cycle approach
• Creates a platform for shared learnings
• Three primary aspects
– Harmonization of approaches
– Dissemination
Harmonize Inspire
– Collaboration
Start
Engage mapping Influence Influence
Scan other
other common other major
initiatives
companies model and companies initiatives
method

14. PRé and DSM
PRé provides organizations with DSM provides nutritional and
methods, tools and support to pharmaceutical ingredients and
measure and improve sustainability performance materials to B2B
from a life cycle perspective. customers worldwide.
• In more than 21 countries • Global company, employing 22,000
• Serving more than 2,500 clients people. AR 9 bio eur. Headquarters in
The Netherlands
• Client industries ranging from • Recognized as one of the industry
chemicals to retail to food & leaders by SAM (DJSI)
agriculture • Mission: Bright Science. Brighter
Living
14

15. J. Renée Morin
Name
Pré North America
President, morin@pre-sustainability.com
Job Title| <lastname>@pre-sustainability.com
Jacobine J. Das Gupta – Mannak
Royal DSM The Netherlands
Corporate Sustainability Manager, jacobine.dasgupta@dsm.com