The Corporate Response

1
The Corporate Response
Stephanie Deltour Benjamin Brejot Andriamialisoa
Iholihanta
Fabien Hersent Pierre Jersale Damien Sers
2
Sources

• Selection of company with
• http//www.comite21.org/entreprises21/index.htm
• Terra Nova / Novethic
• http//www.rapports-developpementdurable.org/fr/in
  dex.htm
• Website of companies

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Sources reports

• le gouvernement dentreprise Accor stratégie
• R a p p o r t d e d éveloppement dura b l e 2 0 0
  2 L afarge m a i 2 0 0 3
• LAFARGE ET LENVIRONNEMENT 2003 RAPPORT 2001
• Rapport DÉVELOPPEMENT DURABLE Renault 2001
• Développement Durable 2002 Rhodia
• RAPPORT DACTIVITE ET DEVELOPPEMENT DURABLE
  2002SUEZ
• SUEZ ENVIRONNEMENT RAPPORT RESPONSABILITE
  ENVIRONNEMENTALE ET SOCIETALE 2002
• Développement Durable 2002 VEOLIA Environnement
• Rapport développement durable 2002 Monoprix
• R appor t d e r e s p o n s a b i l i t é s o c i
  a l e e t e n v i r onnementale 2002, LA DEMARCHE
  DANONE
• Rapport environnement santé et sécurité Pechiney
  en 2002
• 2 0 0 2 RAPPORT DE DEVELOPPEMENT DURABLE
  Sanofi-Synthélabo
• STMicroelectronics Rapport environnemental et
  Rapport social 2001
• Weve chosen those companies for their visibility
  and originality in the appropriation of the
  sustainable development concept.
• Sectors are quite different industry, food,
  car, chemistry

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Companies from the south

• SONATRACH, Harmony Gold we wanted to compare the
  strategies of important firms of the africa
  continent to those in developed countries, and
  see how they adapt to a difficult social
  environment.
• The impact of their business is as large as those
  of foreign companies so we selected them to have
  a balanced comparison.
• however it is important to underline the fact
  that smaller firms or even groups of farmers in
  poorer continents (Africa, South America, Asia)
  are implementing measures to contribute to the
  conservation or improvement of their environment.
  
• Of course their actions seem smaller because they
  are acting on their level, but it is a huge
  change in the way that they have realized the
  importance of acting as much as you can. (this is
  why we talked about the people from the wood
  industry who are trying to find solutions to mix
  their vital economical activity with a
  sustainable environment)

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Introduction

• Most visible actions are green product or fair
  trade, sometimes its used as mkt gadget. Well
  see in this presentation profound reorganization
• OEDC defines 4 types of actions
• public voluntary programs (EMAS and ISO)
• agreements between local authorities and firms
• unilateral actions taken by firms (AERES)
• agreements between firms and private partners
  (labeling associations)

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Contents

• The commitment of different management directors
• Management and HR policies
• Social performance
• Environmental performance
• Economic performance
• Quality
• Partnerships with NGO s
• Transparency
• Mecenat
• Insertion
• Conclusion

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The commitment of different management directors

• Examples

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• Sanofi-aventis (Health sector)
  commitment in the HSE (Hygiene Safety
  Environment) in all the levels and for all the
  products.
• Veolia Environnement (water and
  waste sector) charter of which one on the
  lobbying with the international organizations
  concerning the fundamental rights, the
  environment, the deontology, the safety and the
  Labour Law
• ST MICROELECTRONICS (electronics
  sector) the ecology costs nothing, member of
  the WBCSD (World Business Council for Sustainable
  Development)

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Presentation of diverse interpretations of the
sustainability concept

• Renault (car sector) Three
  keywords are transparency, governance and
  performance.
• Suez (water, energy sector)
  make better by consuming fewer resources.
• Suez Environnement (waste,
  water sector) federative action plan thanks to a
  waybill including the principles of the policy
  (responsibility, prevention, precaution,
  participation, eco-efficiency) by detailing their
  objectives and their action plans and means.

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• Veolia Environnement definition
  of the sustainable development reconcile
  creation of economic wealth with environmental
  protection and contribution to the well-being
  populations
• Monoprix (supermarket) map of
  the responsibilities (under the shape of a wheel)
  with domains such as social (internal and
  external), environmental (control of the
  impacts), economic (group, shop and products) but
  also of the transparency (piece of information,
  reporting).
• ST MICROELECTRONICS They follow
  the 3 R rule reduce, reuse, and recycle.

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MANAGEMENT AND HR POLICIES
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INTERNAL AND EXTERNAL ACTIONS

• Renault   stakeholder chart 
  a community database for recycling.
• Veolia Environnement 
• values client-oriented, responsibilities,
  innovation, performance and solidarity.
• corporate chart on ethics, convictions,
  responsibility.
• Recent board of directors of their own,
  independent of VivendisBoard
• Training created a pedagogical simulator to
  train people on conducting a domestic waste
  incineration plant
• Connex employees Cessions of general culture and
  edition of a multicultural recipe book.
• Survey among 1000 employees in a leading position
  on their vision of the firm and their
  professional experience (done by the CSA)
• Wood industries in Africa meetings and
  agreements for new, legal and sustainable
  resources as well as reliable suppliers
• Monoprix  Performance-related
  bonus for every employee since 2002
• HOWEVER THESE ARE ISOLATED ACTIONS OR MERE
  DECLARATION OF INTENT WHICH DO NOT CHANGE/IMPACT
  THEIR CORE BUSINESS

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DEEP EFFORTS AND CHANGES FOR THE WORKFORCE

• BP (fuel oil sector) affect and benefit
  people worldwide
• diversity (15 of female top leaders among the
  610), meritocracy, integration of local and
  disabled workers
• system of risk management
• Long-term improvement in safety
• performance (DAFWCF)annual frequency
• (per 200,000 hours) of injuries that result in a
  person
• being unable to work for a day (shift) or more

• SONATRACH no economical development without
  sustainable development
• HSE mission no accident, no human or
  environmental injury
• Drop of accident frequency rates

Workforce fatalities 2002 12 2003 1
Workforce fatalities 2002 13 2003 20 2004 11

Other measures -ISO 14001 certification of main
operations -Risk assessment in IUCN sites -New
vessels to reduce oil spills risks
Other measures -social investment, collaboration
with UNDP -investments in less polluting/alternati
ve energies -recycling of water, oil, protection
of the soil
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STRONG ADAPTATION TO LOCAL ISSUES

• Give Something Back quality office supplies
• 25 million dollars turnover, 90 employees, 12000
  clients
• idea that a firms mission is to serve the
  community and not the stakeholders
• allow 72 of their benefits to local social,
  environmental causes chosen through a democratic
  vote 40 to the clients, 30 to employees and
  30 decision of founders
• Harmony Gold n1 gold miner in South Africa,
  worlds n6
• Health
• HRMS Harmony Risk Management System to prevent
  accidents and provide 24 h healthcare to workers
• Vulnerability of workers 33 affected by
  AIDS/HIV thus more likely to contract other
  diseases (tuberculosis, silicosis, lungs, hearing
  losses )
• Highly Active Anti-Retroviral Therapy (HAART)
  treatment (514 workers in 04) Healthiest
  Workforce Campaign
• Social and education
• Equity (Historically Disadvantaged South
  Africans) housing
• Bursaries, jewelry school, sports academy,
  African Jewel Self-Help Group
• Environment
• tolerant indigenous plants to rehabilitate mining
  lands
• BUT few actions or control
• EVEN WHEN THE ENGAGEMENT IS TRUE AND VISIBLE IT
  IS DIFFICULT TO COVER ALL FIELDS OF ENVIRONMENTAL
  ISSUES

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SOCIAL PERFORMANCE

• Objective equity and participation of all
  social groups

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Sanofi- Aventis 

• Malaria Mission program against major diseases
  in Southern countries
• Researches for orphan medicines
• Respect of cultures
• Employment of disable people
• Mixedness men/women

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Suez Environnement 

• Build Operate Train Transfer in Africa
• ISO 9002 and 14001 certification of all the sites
  in Africa
• In Brazil, employment of low qualified people
• Sensitisation to customers on water value
• Platform to guarantee the respect of norms
  concerning the reject of used waters
• Water and sanitation for all program
• Alphabetisation policy of employees

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Veolia Environnement 

• Sensitisation of suppliers to the firms vision
• WATERDEV 
• Mobilisation during the French and Central Europe
  flooding in 2002
• In Niamey, program to give a free and individual
  access to drinking water to the poorest
• Initiative Type II driven by the UNITAR for a
  sustainable urbanisation

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Danone (food sector)

• Danone Way, sustainable charter for
  the whole group
• Social protection of fundamental needs
  (retirement, work accidents,...) for the
  employees and their family
• World-wide study on social dialogue and security
• Global program Odyssée

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Some Other Firms

• Monoprix
• - architectural efforts
• - proceedings to encourage conso-actors
• - participation in the Equals1 city-tactic
• Renault
• - supplier advises
• - member of the WBSCD
• - vehicles sold at a price of 5,000 in
  emerging countries

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Environmental performance

• Ecological objective resources management and
  conservation, environment protection

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Peugeot (car sector)

• Reduction
• of water consumption (and treatment)
• of the atmospheric emissions.
• Prevention of grounds
• Use of painting dilute with water.
• Study of cars lifecycle.
• Conception of more clean engines, more
  aerodynamic and lighter models or even
  improvement of fuels.
• Rate of waste valuation at 85 of the
  production.
• Training to better manage its behavior on a
  website dedicated to products and green services.

Renault recycling 95 of the weight of the
vehicle, also reflection on the lifecycle
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ST MICROELECTRONICS

• Objective to be ecologically neutral before 2010
  in CO2 throwing out not to take more than
  returning
• energy efficiency, renewable energies, the wells
  of carbon and the reforestation.
• The purpose would be to reduce CO2 emission for
  more than 10 million tons (period 1994 2010) for
  a 900 million dollar energy saving.
• They want to be recognized as one of the most
  environment friendly companies
• application of their Decalogue
• overtaking and anticipation of statutory
  requirements
• Comparison of the company with other
  international companies to overtake the most
  successful
• Organization Total Quality and Management of the
  Environment
• A " environment Champion" local collect all the
  initiatives and passes it to the group and to the
  director of the site.
• Estimation method
• ratio between the real performance and the
  standard (the best realization is always taken as
  standard) represented by a radar diagram
• One concerns entrances (electricity, water,
  paper), the other one is the exits (waste, COV)

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ST MICROELECTRONICS

• In their environmental management, a list of ten
  impacts categories has been associated to
  science progress.
• global warming, impoverishment of the ozone
  layer, total COV emissions,
• atmospheric acidification, photochemical ozone
  creation, toxicity of emissions in the air,
• need of classic oxygen, eutrophication, heavy
  metals, aquatic ecotoxicity.
• Indicators are expressed in million dollars of
  added value (turnover less purchase costs)
• Theyve reduced 30 of their water consumption
  compares to 94
• They will recycle 95 of the waste of
  manufacturing before 2005
• For now, 98 of their paper is recycled and
  their use was reduced of 46 Reduction of 95
  publications thanks to the CD-ROM and DVD
• They respect permanently a sound level of 60db on
  the boundary of their site

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Veolia Environnement

• the company wants to apply " concretely and daily
  a system of environmental management .
• But for the moment their objective is to reach 60
  of the activities in 2005 and still only for
  the relevant activities (Distribution drinking
  water, waste, energy, Transport). They write
  minimal requirements, which does not push to the
  best.
• employees training to the eco-environment.
• Desalination of the sea water and the brackish
  waters to furnish the Israel region
• treatment channels of electric and electronic
  equipments waste.
• use of renewable energies
• interesting objectives
• reduce the olfactory nuisances (researches to
  neutralize the smells of the purification
  installations)
• look for the landscape integration.

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Lafarge (ciment sector)

• They apply a prevention measure for accident
  throwing out and have an emergency plan of
  intervention in all sites.
• Environmental audit of all sites in progress of
  acquisition or disinvestment.
• For all their quarries, rehabilitation plan
  meeting stakeholders expectations, and if they
  can, creation of favourable zone to the wild life
  which contributes to the conservation of
  threatened species.
• Examples of action
• rehabilitation of a quarry part in garden with a
  visual and sound screen which isolate the site
  still in exploitation.
• Preservation of historic vestiges, discovered
  during construction of the new installations, in
  the opening or during the exploitation, is also a
  priority.
• Actions for resources economy
• energy valuation (biomass, rice balls),
• recycling of tires,
• valuation of animal flours and various waste.
• RECYCLING INSTEAD OF USING FUEL OR
• OTHER POLLUTING MATERIAL

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Others

• Danone
• it passes specifications to the farmers so that
  they apply the good environmental practices.
• Schedule Sustainable Agriculture Initiative with
  Nestlé and Unilever on sharing of sustainable
  agriculture experiences, three experimental
  operations were launched and then audited.
• List of the main impacts in relation to their
  activity or not.
• Guide of water and energy savings.
• Wheel of ecological conception of packaging.
• Rhodia (chemistry sector)
  regeneration of groundwaters by recirculation of
  some water used in the factory and construction
  of a cogeneration factory.
• Accor (hotel sector) in France,
  hotel with sun boiler. In Australia, clean
  construction following the HQE ( high
  environmental quality) initiative

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• Total Final Elf (fuel oil sector)
  research for precursory signs of rivers pollution
  thanks to bio-indicators which measure the
  biodiversity evolution after self-controlled
  throwing out.
• Sanofi-Aventis
• 33 reduction of the COV emissions, all the
  throwing out or consumptions are estimated over
  three years
• 91 of the waste are valued.
• Suez Environment
• 5 principles responsibility, prevention,
  precaution, participation and eco-efficiency.
• They associate stakeholders (local governments,
  local associations, the NGO) to the environmental
  charter.
• Equipment of their car fleet of electric or
  natural gas engines.

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ECONOMIC PERFORMANCE

• Objective Creation of wealth for all through
  modes of production and sustainable consumptions

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Economic Performance

• General Approach
• Shock between two models stakeholder and
  shareholder
• One solution hybrid model
• Loans with traditional models
• Compromise between two models double convergence

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Economic Performance

• Corporate Cases
• Michelin (tire sector) help for corporate
  development thanks to a subsidiary company of the
  group, the SIDE (Company of Industrialization and
  Economic Development).
• -gt technical and financial assistance in
  connection with local communities
• Suez Environment depollution contracts,
  participation in sustainable development of
  several countries (Argentina, Mexico, France),
  presence in the Dow Jones sustainability Index
  World
• Veolia Environnement conciliation of
  requirements of short-term profitability
  (financial markets) and need for an economic
  development in the long run.
• -gt partnerships public/private, expertise and
  subsidizes contribution
• Monoprix bio and fair products, pioneer on
  sustainable products.
• Danone presence in several index (Dow Jones
  Sustainably Index, ASPI Eurozone)

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• STMicroelectronics environmental
  index, classified in the first companies
  contributing to the SD.
• -gt 2000 77 million dollars saved for 29 spent
  (thanks to conservation and recycling).
• -gt the only company which shows by AB, that it
  is possible to grow rich by respecting the
  environment and by having a social ethics
• Rhodia creation of new programs and
  products.
• New opportunities a good corporate management in
  SD can allow the participation in ethic funds
  and so value shareholders investments.

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Economic Performance

• Corporate vision and evaluation of economic
  performance in SD

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Quality certifications and criteria

• General Aspect
• Quality criteria Global Reporting Initiative
  (formed by corporate associations, NGO, academic,
  consultant and supported by UNO).
• Quality of the suppliers EAFQ or QS 9000
• Environmental Management ISO 14000 standards,
  Eco-Management Audit Scheme (EMAS) (developed by
  EU).
• Personnel protection and safety international
  standards OSHAS 18001 and SA 8000 standards.

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Quality

• Corporate Analysis quality program and actions.
• Sanofi-synthelabo - Audit HSE (Hygiene, Security
  and Environment), COVALIS (intern limits)
• - Objectives
  in TRIBIO (Bio-security, bio-ethic and bio-
• vigilance) and ISO certification.
• Suez Environment EQS process
• -gt obtain some adapted certifications,
  electricity production from bio-gaz and
  work-accidents reduction.
• Veolia Environment - process depending on firms
  strategy.
• - progress
  observations (index).

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Quality

• Monoprix suppliers audit by
  PriceWaterHouseCoopers.
• Danone - use of Vestalis (software showing
  operational risks) for Danone Way
• - integrated management Thémis
• - research and development in
  nutrition.
• STMicroelectronics - future certification
  OHSAS 18001 (Occupational Health and Safety
  Management System).
• - sites with EMAS
  and ISO 14001 standards.
• - systematic
  regulation and precise and serious application
• Rhodia HSE process, ATC method (risks
  analysis), urgency plan.
• Pechiney security golden gloves
  behaviors, security and work quality.

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Quality

• Conclusion certifications are important steps in
  quality process for all firms but specific
  actions give also more securities in sustainable
  development policy.

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PARTNERSHIPS WITH NGO s

• Various levels of corporate implications and
  concerns

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• Lafarge and WWF in order to reduce ecological
  impact (7 indicators) rehabilitation of cement
  quarries at the end of their lifecycle following
  international standards respect of
  biodiversity. Ex  Bamburi
• Monoprix Department store their textiles are
  controlled for their ecological certification
  OEKO-TEX in partnership with the WWF
• Suez and ONF  waste recycling, carbon shafts to
  encounter greenhouse effects and creation of
  greenery public spaces.
• Pechiney 
• - partnership for climate-friendly actions (PCA)
  created by the Environmental Defense NGO
• - Member of the Firms Association for Reducing
  Greenhouse effects (AERES), as well as the French
  association Firms for the Environment (EPE)

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Transparency

• Website PSA
• Phone Call Center Suez Environnement
• Raw resources used and impacts on environment
  Veolia
• Independent people analyzer Danone

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Mecenat / Insertion

• PSA / SAMU Social Cars supplying
• Vivendi environmental projects
• Sanofi Aventis children help
• Danone sport patronage
• LOreal donations to associations
• AGF association network for help

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Negative points

• According to Terranova, environmental performance
  scarcely appears on reports. Social policy arent
  important 10 of firm
• No equity in the firm decisions Sanofi
  Aventis, TotalFinaElf, LOreal
• Lack of R D about the new energies gas,
  electricity, hydrogen
• Lack of transparency Veolia

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Conclusion

• Pressure on company
• NGO, consumer, worker, shareholder, legislation,
  public opinion, competition
• Advantages of SD
• Risk decreasing
• Differentiation, image benefit
• Innovation
• saving