Industry Voluntary Sustainability Initiatives

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Industry Voluntary Sustainability Initiatives

• Forum on Hydropower 2005 Sustainability in
  Practice Planning, Building and Operating
  Hydropower Projects

Presented byMichael van AanhoutOctober 28, 2005
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Topics

• Why are industries addressing sustainability
  collectively?
• How are they doing it?
• Lessons learned and challenges

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What are we talking about?

• Corporate sustainability
• Corporate (social) responsibility
• Corporate citizenship
• How companies and industrial sectors manage
  non-financial risks and opportunities
• --------------------------------------
• Find language that
• Fits the culture of the industry/sector
• Provides clarity of intentions to communities of
  interest

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Why is Industry Addressing Sustainability?

• Chemical Producers
• License to operate was threatened in 1980s
  global disasters, local toxics releases and
  emergency events
• Need to drive continuous improvement
• Opportunity to reduce regulatory pressure
• Petroleum Producers
• Reputation was impacted by community/ stakeholder
  and environmental concerns (2000)
• Leading (Canadian and international) practices
  existed in sector
• Concern over lagging performers
• Forest Products
• Market pressures large customers influenced by
  advocacy campaigns and consumer preferences

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Mining Association of Canada

• The status quo simply isnt sustainable
• Social License to Operate is at risk
• The bar keeps rising
• We must improve our performance, both
  operational and social
• We must improve stakeholder judgement of our
  industry by taking action collectively

Source Gordon Peeling, President, Mining
Association of Canada
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Collective Industry Response

• In Canada
• Chemicals Responsible Care (CCPA)
• Oilgas production Stewardship (CAPP)
• Forest Products Sustainability Initiative
  (FPAC)
• Mining Towards Sustainable Mining (MAC)
• Utilities Environmental Commitment and
  Responsibility (CEA)
• Maritime Industries Sustainability Initiative
  (Chamber of Maritime Commerce)
• Cement Sustainability Report (CAC)
• Internationally
• International Council on Mining and Metals
• International Hydro-Power Association

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What is Industry Trying to Achieve?

• Improved reputation through
• Improved performance and management of
  environmental, social and broader economic issues
• Communicating to key stakeholders and communities
  of interest what the industry does, what
  contributes to society, and action taken
• Improved relations through
• External outreach to communities of interest
• Understanding their concerns and expectations
• Dialogue
• Responding to concerns

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Mining Association of Canada
Performance Indicators
Toward Sustainable Mining

• Under Development
• Community Development / Aboriginal Relations
• Biodiversity

• Existing
• Tailings Management
• Energy Management
• Crisis Communications
• External Outreach

External VerificationSystem
Implementation
Tools
Technical
Measurement/Assessment Protocols

Guidelines
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Canadian Electricity Association
Environmental Commitment Responsibility (ECR)
Program
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International Council on Mining and Metals

• Sustainable Development Framework Principles
• Ethical business practices and corporate
  governance
• Integrate sustainable development within
  decision-making
• Uphold fundamental human rights and respect
  cultures
• Health and safety performance
• Environmental performance
• Conservation of biodiversity
• Responsible design, re-use, recycling, disposal
  of products
• Social, economic and institutional development of
  communities
• Commitments on critical issues
• No disposal of tailings into rivers
• No mining activity in World Heritage Sites
• Partnerships
• Biodiversity IUCN World Conservation Union
• Sustainability Reporting - Global Reporting
  Initiative

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International Hydropower AssociationSustainabilit
y Guidelines
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Lessons learned

• With reputation on the line, need to act as one
• The reputation of the best performers is impacted
  by the performance of the worst
• Can reduce demand for new regulation, if
• Industry collective action is beyond compliance
• Willingness to dialogue and negotiate openly on
  regulatory improvements
• To be effective, need
• Sustained CEO leadership
• Mechanism to foster peer pressure set
  requirements
• Alignment wide participation across the sector
• Credibility depends on
• Demonstrated performance
• Engagement of key stakeholders/communities of
  interest

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Framework for Industry Sustainability Initiatives
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Key Challenges in Effective Association-level
Initiatives

• Divergent priorities/market competition among
  members
• Setting performance reporting requirements
• Balancing the bar between leaders and companies
  with work to do to meet requirements
• Scoping
• Addressing the key economic social issues
  demanded by stakeholders and creating risk to the
  industry

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For Further Information

• Michael van Aanhout, P.Eng, CEA
• Stratos Inc.
• strategies to sustainability
• Suite 1404 - 1 Nicholas St.
• Ottawa Canada K1N 7B7
• tel [phone] ext. 243
• fax [phone]
• mvanaan_at_stratos-sts.com
• www.stratos-sts.com