GEMI Benchmarking Survey on EHS Annual Reports

1
GEMI Benchmarking Survey on EHS Annual Reports

• Richard J. Guimond, Motorola, Inc.
• and
• George Nagle, Bristol-Myers Squibb Company
• Portland, Oregon
• June 28, 2001

2
1. Does your company prepare a periodic public
EHS Performance Report?
Yes 32 No 2
3
2. If Yes, how frequent?
Others Web site updated every 4 months
varies information provided on web site OSHA
safety performance/environmental measures updated
monthly.
4
3. How many years have you published a report?
Average number of years companies have issued
reports 5 years
5
4. Why do you publish a report?

• Let employees know how the company is doing - 32
• Share company information with stakeholders - 31
• Provide transparency to government, NGOs, and
  neighbors - 26
• Respond to stockholder pressures - 11
• Provide an advantage over competitors - 11
• Meet a customer request - 7
• Others - 3

6
5. What is the length ( of pages) of your most
recent report?
Average number of pages in report 23 pages
7
6. Who are your audiences?
8
7. Does the report follow any specific format?
9
8. Does your report cover the following EHS
aspects?

• EHS Performance Data - 32
• EHS (or environmental) Policy - 31
• EHS Awards - 30
• EHS Compliance Record - 29
• Environmental Management System - 27

• EHS Goals - 25
• Environmental Remediation - 23
• Product Stewardship - 21
• Stakeholder Involvement - 19
• Employee Wellness - 14

10
8. Does your report cover the following EHS
aspects? (Contd)

• Others
• Initiatives, e.g. Champions for the Environment,
  Project XL
• Sustainable development, EHS principles, safety,
  energy efficiency
• EHS philanthropy and community projects
• Governance, issues, UN Global Compact,
  experimental animal data, environmental impact
  (Eco-indicator-95) and benchmarking
• Employee volunteer efforts, investment in
  community environmental projects, sustainable
  forestry indicators, environmental capital
  spending, environmental training data
• CSR, climate change

11
9. Please identify major sections of information
in your report.
12
9. Please identify major sections of information
in your report. (contd)

• Others
• Climate change position statement
• Environmental stewardship success stories
• Product and packaging performance
• HSE performance
• Metrics initiatives expenditures awards SHE
  philosophy remediation, compliance
• EHS values, policies, management system,
  performance, examples, timeline
• Safety health, awards recognition, managing
  for excellence, environmental performance,
  stewardship community
• SO2

13
9. Please identify major sections of information
in your report. (contd)

• Others
• Audits performed inspections and fines
  contractor safety environmental expenditures
  responsible care implementation fleet safety
• Alcohol awareness also health and safety
  performance
• We focus on our EHS programs and performance with
  case examples.
• Message from Vice President of EHS, summary of
  performance on key metrics, recognition by
  external parties/agencies
• Management systems, products, regulatory
  compliance, health safety performance, outreach
  programs
• Management systems (social, economic and
  environmental), sustainability in action (case
  studies of various initiatives)

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9. Please identify major sections of information
in your report. (contd)

• Others
• Environmental measures, safety measures,
  sustainable forestry measures, community outreach
  measures, corporate ESH, use of resources, and
  community awareness policies
• EHS performance, organizations/staffing, quality
  of management, executive summary
• Environmental performance, P2, emergency response

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10. What metrics do you report on?

• Recordable Injury/Illness Case Rate - 25
• SARA Title III - 23
• Haz Waste Generated - 23
• Lost-day Case Rate - 22
• Others - 21
• Energy Usage - 21
• Non-haz Waste Recycled - 20

• Global warming gas emissions - 14
• Water Usage - 13
• VOM emissions - 13
• EHS Expenditures - 12
• NOX emissions - 11
• Days from Work - 10
• CO emissions - 9
• HAP emissions - 7
• PFC emissions - 5

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10. What metrics do you report on? (contd)

• Others
• Electricity use Packaging use Violations
  Fines Reportable spills
• PM SO2 Mercury
• Social contributions, diversity
• Packaging waste carcinogens and suspect
  carcinogens
• VOC air emissions, manufacturing releases to
  water, solid waste, rate of waste generation,
  energy, greenhouse gas emissions, compliance
• Violations
• TRI emissions recycling NOVs fines paid
  emergency response drills, spills

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10. What metrics do you report on? (contd)

• Others
• Dichloromethane emission, 30 hazardous chemical
  emissions, heavy metals in product, ISO 14001
  registrations
• Remediation sites, citations, penalties,
  reportable incidents, oil produced water
  releases
• MSDS, contractors, inspections, compliance
• Financial highlights philanthropic
  contributions diversity data wastewater COD
  performance against internal standards (audit
  programs, certified site leaders) historically
  underutilized business (HUB) spending
  environmental liabilities
• Compliance
• HSE investments, HSE personnel, water emissions,
  heavy metals, air emissions, disposal method of
  hazardous waste

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10. What metrics do you report on? (contd)

• Others
• Environmental and forestry wildlife training
  hours, completion of audit items, forestry
  verification audits, citizen complaints,
  recovered paper consumption, total reduced sulfur
  emissions, sulfur dioxide emissions, BOD/TSD
  discharges, Chairmans Safety award winners, OSHA
  VPP participation, safety inspections, time
  operating injury-free, forestry BMP
  implementation, AFPA sustainable forestry
  initiative metrics, volunteer hours, investment
  in community environmental projects
• NOVs, reportable spills, fines paid
• Sustainable development measures, economic
  performance, production, implementation of
  Responsible Care, total waste reduction, waste
  water, all chemical emissions, motor vehicle
  incidents, dioxin emissions, transportation
  incidents, public favorability scores at largest
  sites
• Accident and non-accident releases, accidents per
  million ton mixes

19
11. How many different metrics to you report?
Average number of metrics used 14 metrics
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12. For which specific metrics, do you have
corresponding goals that are included in your
report?

• Recordable case rate, internal management system
  performance, biologically-diverse land
  preservation, energy use, water use, greenhouse
  gas emissions, off-site hazardous waste disposal,
  hazardous air emissions, hazardous water
  emissions, packaging usage, package recycled
  content
• EPIs - set goals years and will report annually
  starting next year
• Air carcinogens, energy, greenhouse gases,
  hazardous waste
• Just 2 general goals of reducing waste/accidents
  while production increases
• VOM emissions, HAP emissions, PFC emissions,
  hazardous waste generated, non-hazardous waste
  recycled, SARA releases, water usage, energy
  usage, and recordable injury/illness case rate
• Carcinogens and suspect carcinogens, SARA
  releases and packaging weight

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12. For which specific metrics, do you have
corresponding goals that are included in your
report? (contd)

• Violations, lost work days
• Responsible Care implementation, solvent
  emissions as a of use and serious II rate
• Disabling injuries, DI incidence, total injuries
  inc rate, biogas production, water use, electric
  purchases, fuel, solid waste, hazardous waste
• 5 of the 7 goals reported
• OSHA recordable, OSHA restricted, OSHA days away
  from work, reportable quantity, wastewater
  noncompliance
• The goal for all metrics is continuous
  improvement
• Injury rates, recycling, VOCs
• VOM emissions, Hazardous waste generated,
  non-hazardous waste recycled, energy usage,
  recordable injury/illness case rate, lost-day
  case rate

22
12. For which specific metrics, do you have
corresponding goals that are included in your
report? (contd)

• Energy use, office paper, toxic chemical
  releases, packaging usage, hazardous waste
  generation, solid waste disposal
• Energy, accident rates, reduction of halogenated
  VOCs
• In 1994, we established 58 goals and have
  reported progress biennially. Having met most of
  those goals by 2000, we decided to replace goals
  with 34 measures of environmental and safety
  performance.
• Air, water, solid waste, rate of waste generation
• Waste management and recycling energy use,
  corporate-wide TRI reduction recordable injury
  reduction enforcement action (reduction/eliminati
  on)
• Goals are not included for competitive reasons
• Responsible Care implementation, energy use,
  waste reduction, chemical emission reduction,
  priority emission reduction, dioxin, process
  safety incidents, spills, transportation
  incidents, waste water, injury/illness rate,
  motor vehicle incidents

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13. How do you publish your report?
24
14. Would you describe your current report
distribution as primarily web-based?
25
14. If yes, do you also produce a printed
summary report?
26
14. If yes, do you also use postcards and other
printed means to announce the availability of the
report?
27
15. Does the report address sustainable
development?
28
16. What are the percentages devoted to the
following?
29
17. How is your report prepared?
30
18. How many copies do you print?
Average number of reports printed 26,400 copies
31
19. How do you distribute the reports?

• List of other stakeholders - 25
• Corporate headquarters offices - 24
• Senior management list - 23
• Employee mailing list - 16
• Govt mailing list - 15
• NGO list - 16
• Sales offices - 11
• Customer mailing list - 12
• Others - 11
• General mailing list - 10
• Manufacturing or service facilities - 4
• Supplier list - 3

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19. How do you distribute the reports? (contd)

• Others
• EHS contacts in other companies
• Shareholders at annual shareholders meeting
  notice on companys annual report, manufacturing
  facilities as requested
• Provide on web
• Board of Directors
• Published on web
• Business unit CEOs and PR
• MEDIAlist

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20. How much staff time does it take to develop
the report?

• Average time
• 0.88 person years
• Range (minimum to maximum)
• 0.015 to 4.65 person years

34
20. How much staff time (by person years) does
it take to develop the report?
35
21. How much do you spend on your annual report
for preparation and development?
Average cost to prepare and develop report
86,801
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22. How much do you spend on your annual report
for printing and distribution?
Average cost to distribute report 29,238
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23. Do you evaluate the effectiveness of your
report?
38
23. If Yes, how do you evaluate the
effectiveness of your report?
39
24. If you use a comment card, how many
responses did you receive for your last report?
40
25. If you use a web-based card, how many
responses did you receive for your last report?
41
26. Do you plan to continue to publish your
report in the future?
42
27. What changes to you plan?
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27. What changes do you plan? (contd)

• Others
• Make it even more web-based
• Include health, safety, social and economic
  information going forward
• Social commitment
• Expand net content adding social responsibility
  beyond HS include global EHS performance data
  issue net based report with printed executive
  summary
• Conform with GRI
• Expand the social responsibility section.
• Expand EHS and sustainability, especially social
  data in 2002
• Sustainability metrics include some GRI aspects
• Research, stewardship, data

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27. What changes do you plan? (contd)

• Others
• To detail projects that are important and
  relevant at the time possibly add more metrics
• We intend to cover more financial figures.
• Expansion on internet
• Move towards GRI format
• Additional metrics
• Contemplating moving more information to the web
  and reducing the size of the printed report
• Expand data on social programs
• EHS compliance EHS philanthropy more air,
  water, waste emissions
• Incorporate new metrics based on our newly
  developed goals
• Metrics, sustainability
• Include more social metrics, move towards GRI,
  more on internet

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28. What benefits do you believe the company has
obtained from publishing the report?

• Improved EHS awareness and relations with
  employees - 29
• Improved reputation with neighbors or NGOs - 26
• Improved relations with government bodies - 26
• Increased reputation or sales with customers - 25
• Better understanding of EHS policies and
  performance from managers - 17
• Reduced external criticism about the company - 13
• Better understanding of companies EHS
  expectations of suppliers - 9
• Others - 4

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28. What benefits do you believe the company has
obtained from publishing the report? (contd)

• Others
• Used in recruiting and to give employees sense of
  companys concern and commitment on aspects
  addressed by the report.
• Improve shareholder value.
• It is anticipated that the report currently being
  prepared will result in improved understanding of
  the financial impacts of our EHS programs on the
  part of socially responsible investors.
• Improved reputation with investors

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29. Do you believe that the company obtains
sufficient benefits compared to the resources it
takes to publish the report?
48
30. What type of paper did you print your last
report on?
Average post consumer content 65 range was
10 to 100
49
31. What percentage of companies use soy inks?
50
32. What month did you release your most recent
report?
51
33. Did it include data and information for the
entire previous calendar or fiscal year?
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34. Does your financial annual report contain a
reference to your EHS report or a section on EHS?
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35. If yes, what type of information does it
include?

• It references the report and our Companys
  Internet site. Also has standard SEC section and
  remediation liability.
• Very brief reference to finding more information
  on the web.
• Mostly cost information.
• Report includes environmental information as
  presented in SEC reports.
• Performance and achievement.
• How to request the report.
• Values, performance results, web site address
• CEO statement from HSE report
• The financial annual report includes a summary of
  significant EHS accomplishments, a table of
  environmental expenditures, and a discussion of
  remediation matters and references the
  availability of the EHS report.

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35. If yes, what type of information does it
include? (contd)

• Environmental spending (capital and operating
  maintenance), information on Superfund/remediation
  and major enforcement actions.
• Summary of environmental efforts/performance.
• Only the web address and required information on
  environmental liabilities.
• Talks about the management system and supplier
  policy in discussion section. Also in
  Chairman/President letter discusses
  responsibility in terms of alcohol awareness,
  environmental protection, community support and
  charitable contributions.
• Very brief information on major activities.
• Safety, environmental liabilities and
  expenditures.
• General statement
• Specific operational report contained 2 pages on
  sustainable development and 2 pages on corporate
  citizenship and 2 pages on employees

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35. If yes, what type of information does it
include? (contd)

• In the investor information section, there are
  directions on how to request a hard copy of the
  EHS report and how to access it from the
  internet.
• Some environmental information included as part
  of SEC requirements. Additional highlights
  related to EHS may also be included. No specific
  reference to the separate EHS report.
• Information on how to obtain the EHS report.
• Required environmental disclosure.
• Reference
• Remediation costs

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36. Do you try to integrate the financial report
and the EHS report in any way?
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36. Do you try to integrate the financial report
and the EHS report in any way?

• Reference to each report in the other. Also
  information is linked electronically on the web
  under the general title of sustainability.
• Want to going forward perhaps print and release
  at the same time.
• Yes identical graphical layout.
• We use some of the same numbers in each.
• ESH risks included in the financial report
• Yes, in the EHS report there is linkage to
  financial performance.
• Yes, the EHS department provides information for
  the EHS discussion contained in the financial
  report.
• Sustainability report summarizes the financial
  data
• Include summary of these topics in annual report
  and publish at same time

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37. What additional comments would you like to
share about your companys plans and experiences
on this topic?

• Measuring the amount of action that EHS
  information is generating on the web.
• We have a long way to go, but reviewing the
  reports of GEMI companies has been very helpful.
• Our company is working with HR and Public Affairs
  group to include expanded social responsibility
  aspects into the public report. Weve also
  contracted with a marketing consultant for
  assistance.
• We recognize the importance of reporting and plan
  to increase it during the next two years.
• We are planning to utilize our companys web page
  more in the future, and increase awareness of the
  efforts globally including more information on
  emerging issues and global EHS activities.

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37. What additional comments would you like to
share about your companys plans and experiences
on this topic? (contd)

• Were learning and look forward to seeing the
  results of this survey.
• The greatest value of the report seems to be in
  increasing the internal understanding of the
  companys EHS goals, programs, and performance.
• Following GRI has been helpful in providing a
  more complete picture
• We have 2 outside reviews of our report -
  verification by AD Little and review/report
  challenge by John Elkington.
• Cost to produce online version of EHS report.
• It always takes longer to do than you think it
  will. Plan in advance with many internal
  stakeholders.

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37. What additional comments would you like to
share about your companys plans and experiences
on this topic? (contd)

• Dont publish a report when you cant make the
  reports relevant to your readers you are only
  going to toot your horn about the good things the
  company has done and you do not want to discuss
  pitfalls, setbacks, and mistakes.

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38. What additional comments should have been
asked on this topic?

• How often do companies routinely update their EHS
  information on their web site? We do it every
  four months.
• Whats your companys biggest challenge with
  regard to addressing social responsibility in an
  integrated manner with EHS?
• Do we provide information that provides useful
  information to financial analysts to better
  understand how our EHS efforts provide value to
  the companys financial performance?
• The benefit vs. effort hours is misleading we
  would track and use metrics without a corporate
  report.
• How many of your reported metrics are solely for
  external reporting how many additional HSE
  metrics are used to run the business, yet are not
  reported externally - list (link to business
  strategy, performance).

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38. Do you have any other comments on this
survey form or this survey process?

• Great topic and very timely for us. This is an
  area that seems to be evolving.
• I believe the survey did not assume HS was an
  aspect of social responsibility - which it is.
• Good survey. Im anxious to see the results.
• Process was fine.

63
39. What future topics should GEMI benchmark
which would have significant value for your
company?

• Survey on investor relations.
• NGOs/stakeholder strategy - how do you solicit
  input from various stakeholders, frequency of
  contact and communication, benefits, risks,
  lessons learned, initiated at corporate level vs.
  interaction at business unit or facility level.
• Environmental/social responsibility accounting
  practices, associated data gathering methods,
  issues and IS strategies.
• Emerging HSE issues.
• Training professional EHS staff.
• What drives EHS management - reduce costs reduce
  risk increase business value keep out of jail?
  Then ask other questions that help determine how
  much effort a company puts behind what they say
  they do. Do they walk the talk?

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39. What future topics should GEMI benchmark
which would have significant value for your
company? (contd)

• Would like to see some metrics on ISO 14001 and
  18001 e.g. certified, combined with ISO 9000,
  costs, time frame to roll out.
• Benefits of producing an environmental or
  sustainability report and how to track ones
  success in this area.
• How comparable are reports that follow standards
  such as GRI, PERI, or CERES from company to
  company within a similar industry or in diverse
  industries?
• Is third-party verification in this area reliable
  based on the relatively recent emergence of these
  types of publications?
• GHG inventory methodologies (assets
  excluded/included how to handle
  acquisitions/divestitures GHG reduction targets).