LEADERSHIP IN SUSTAINABLE DEVELOPMENT REPORTING

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LEADERSHIP IN SUSTAINABLE DEVELOPMENT
REPORTING Presentation at Standards New
Zealand Conference 20 February 2002
Rodger Spiller Executive Director NZBCSD
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Providing business leadership as a catalyst for
change toward sustainable development, and
promoting eco-efficiency, innovation and
responsible entrepreneurship.
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Sustainable development is about ensuring a
better quality of life for everyone, now and for
generations to come.

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Leadership Forum
February 2000
Sustainable New Zealand Scenario
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Sustainable New Zealand Scenario
ECONOMY
Knowledge-intensive Responsive Niche-focused Clust
ered
Kiwis are confident entrepreneurial
Wealth is created sustainably
SOCIETY
ENVIRONMENT
Proactive Educated Networked Diverse Caring
Stretch goals for Waste reduction Air and water
quality Energy efficiency Biodiversity Restoration
Everyone walks the talk
Leadership Strategic Framework Goals
Indicators Metrics
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Our Aims

• Business leadership
• Demonstrate best practice
• Policy development
• Global outreach

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Our Members

• 3M New Zealand Ltd
• BP Oil NZ Ltd
• City Care Ltd
• Deloitte Touche Thomatsu
• Eagle Technology Group Ltd
• Fletcher Building Ltd
• Fonterra Co-operative Group Limited
• Foresight Institute of NZ
• Hubbard Foods Ltd
• Interface Agencies
• Landcare Research
• Meridian Energy
• Mighty River Power Ltd
• Milburn New Zealand Ltd
• Money Matters NZ Ltd
• Morel Co
• Natural Gas Corporation
• NIWA
• Palliser Estate Wines of Martinborough Ltd

• PricewaterhouseCoopers
• Richmond Ltd
• Sanford Ltd
• Shell New Zealand Ltd
• Simpson Grierson
• Telecom New Zealand Ltd
• The Boston Consulting Group
• The Living Earth Company
• The Warehouse Group Ltd
• The Warehouse Group Ltd
• Toyota NZ Ltd
• Transpower
• Trust Power
• Urgent Couriers Ltd
• URS - NZ Ltd
• Waimangu Volcanic Valley
• Waste Management N.Z. Ltd
• Watercare Services Ltd

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DEDICATED TO MAKING A DIFFERENCE

• Coalition of 150 international companies
• From over 30 countries and 20 sectors
• 30 national and regional partner organisations
• 700 business leaders involved globally
• United by shared commitment to Sustainable
  Development

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THE REGIONAL NETWORK - BCSDs and Partner
Organizations -
BCSD North Sea Region
Vernadsky Foundation Russia
BCSD Poland
EPE France
CGLI USA/Canada
BCSD Czech Republic
BCSD Mongolia
FE Spain
BCSD Austria
BCSD Croatia
FFA Spain
BCSD Latin America
CII India
BCSD Gulf of Mexico
APEQUE Algeria
BCSD Mexico
BCSD Taiwan
BCSD Honduras
BCSD Thailand
BCSD El Salvador
PBE Philippines
BCSD Venezuela
BCSD Malaysia
BCSD Costa Rica
BCSD Colombia
BCSD Indonesia
BCSD Brazil
EFZ Zimbabwe
WASIG W.Australia
BCA Australia
IEF South Africa
BCSD Argentina
BCSD New Zealand
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DEDICATED TO MAKING A DIFFERENCE
WBCSD Projects
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(No Transcript)
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Sustainable Development Reporting (SDR)
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Definition of SDR

• Public reports and information communicated by
  corporations that provide internal and external
  stakeholders with
• A clear picture of corporate values and
  principles,with a link to business objectives
  strategy,
• A transparent picture of goals and performance
  information on economic, environmental and social
  dimensions,
• The management response to performance the
  commitment to improvement,
• A description of the corporations contribution
  to the sustainable development.

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PROJECT DELIVERABLES
DEDICATED TO MAKING A DIFFERENCE

• A 30 page written report on the Business Case for
  
• Sustainable Development Reporting
• Self-Assessments tool
• Elements of good reporting Practices
• Presentation Material
• WBCSD Position on GRI and other constituents
• Summary of round table discussions with financial
  community
• Presentation package for members wanting to sell
  the concept internally

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EXPECTATIONS
What this project IS

• Give guidance to companies on the why/ what/ how
  of reporting

What this project is NOT

• Project is not to deliver indicators
• Will not tackle the issue of standarization

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DEDICATED TO MAKING A DIFFERENCE
WBCSD SDR Project Purpose - the how not the
what

• Review current tools templates, develop them as
  necessary, identify best practice, establish
  guidance
• Help the WBCSD members start fulfilling the new
  membership requirements
• Help the members more advanced in reporting to
  improve
• Find tools to help sell the idea of SDR inside
  the company to external groups

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Current NZBCSD Projects

• Sustainable Development Reporting
• Climate Change
• Zero Waste
• Sustainable Consumption
• Successful Schools
• Youth Employment

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NZBCSD SDR Project
Objective

• Lead NZ business into Sustainable Development
  Reporting (SDR)

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NZBCSD SDR Project
Deliverables

• Concise NZ Industry guide on the why and how
  for SDR
• All member companies report on progress towards
  their commitment to produce an SDR within 3 years
  of becoming a member
• Website area including industry guide, reporting
  facility and other learning by sharing tools.

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Overview of the Guide

• Section One - Why Report The Business Case for
  SDR
• Section Two - How to Report The SDR Process
• Section Three - Examples of the Process NZBCSD
  Case Studies
• Case studies of businesses that had begun the SDR
  Process
• Sanford
• BP NZ
• Hubbard Foods
• The Warehouse
• Case studies of businesses with no experience in
  the SDR process
• City Care
• Interface Agencies
• Telecom
• Urgent Couriers

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Why Report?
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Increased Financial Return and Reduced Risk for
Shareholders

• It hit us between the eyes when those two
  incidents (disposal of the Brent Spar oil
  platform and the execution of Ken Saro Wiwa in
  Nigeria) to which Shell was linked became
  front-page news around the world. Both were
  glaring examples of the need to communicate
  clearly with all audiences. In both cases we
  simply didnt. We had developed blind spots for
  emerging stakeholders and important issues.
  Simply we had lost the ability to listen. And to
  act effectively on our principles and values.
• Ed Johnson, Chairman, Shell New Zealand.

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Attracting and Retaining Employees

• "The very strong company-wide staff support
  surprised us. For many the SDR process is a
  tangible benefit in working for Meridian."
• Meridian Energy.

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Improving Customer Sales and Loyalty

• "A necessary process to measure company against
  company and thus ensure a level playing field".
• Living Earth

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Growing Supplier Commitment
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Strengthening Community Relations

• The government's efforts internationally are
  matched here in New Zealand ... by the emergence
  of the New Zealand Business Council for
  Sustainable Development which is also committed
  to promotion of the triple bottom line to ensure
  that environmental and social considerations are
  weighed in decision making alongside the economic
  considerations In the private sector, here and
  abroad, leading edge firms are finding that
  social and environmental responsibility goes hand
  in hand with brand image and market positioning
  in the twenty-first century.
• Prime Minister, Rt Hon Helen Clark.

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Contributing to Environmental Sustainability
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Developing a SDR process

• 1. Generate commitment and develop a steering
  group
• 2. Plan the sustainable development report
  contribution
• 3. Seek out examples and assistance
• 4. Map out a process and define scope
• 5. Stakeholder engagement
• 6. Select appropriate and meaningful indicators
• 7. Reflect, set targets and assign
  accountabilities
• 8. External verification
• 9. Communicate findings

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Barriers to SDR

• Lack of internal resources particularly time
• Questions about the details of what to measure
  and how to measure it
• Limited pressure to get started
• Still need to be convinced of the business case
  for SDR
• Need for more internal stakeholder management to
  take place around SDR
• Some businesses revealed that their SDR progress
  was limited by the need to sell SDR to senior
  managers and also more broadly within the
  business
• Reservations about whether external pressure for
  SDR was likely to continue.

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Case Study Insights
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• "Reasons for considering SDR include competitive
  advantage, enhancing reputation, shareholder
  value, improving sustainability culture. These
  include aspects of risk management.
• "Warts and all" is an issue, but the sooner an
  organisation is faced with reporting, the sooner
  it is faced with fixing them up. Warts and all
  increases creditability - we have realised there
  is an issue(s) we do not like it and so we are
  actually going to do something about it - but
  without painting the organisation "lily white".
  If going to do SDR credibly, organisations will
  have warts. If there are big warts the sooner
  these are faced up to the better."
• "We have received positive payback for our
  investment in SDR and implementing ISO 14000 in
  the parent company and all subsidiary companies."
  
• Eric Barratt Group Managing Director, Sanford

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• I believe that our experience will be a great
  asset as a large portion of New Zealand
  businesses is similar in size to Interface
  Agencies i.e.- small (10 people or less). If in
  future, it becomes standard to submit Triple
  Bottom Line Reports or if it becomes mandated,
  our experience will become very relevant for a
  large number of small independent businesses.
• Because it is important to me and the credibility
  of my company, I am trying to ensure that our
  first Triple Bottom Line report does not preach
  and has information that gives a true snapshot of
  where we really are at in regards to
  sustainability. I also want our report to clearly
  state that this is a first step, and be sure that
  our stakeholders understand that we are asking
  them to help us become sustainable and hold us to
  account by setting benchmarks that we will be
  measured by in future years. Small business needs
  to understand that this is a journey, not a
  destination.
• Robb Donze, CEO, Interface Agencies.

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NZBCSD/MFE SDR Project (June 01)
Key project insights

• Debate about what to measure and how
• GRI, AA1000 and other guidelines provide useful
  reference points
• Need for customisation of guidelines to
  individual companies

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For more information visit our websites
nzbcsd.org.nz
wbcsd.org