Sustainable SYKES. A Vision of Sustainability at SYKES
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1 Sustainable SYKES A Vision of Sustainability at SYKES
2 Table of Contents A Message from Chuck Sykes, CEO Overview Organizational Profile Sustainability Structure at SYKES Engaging on Sustainability Our Stakeholders and How We Engage Reporting for Transparency Carbon Disclosure Project, EcoVadis & Ecodesk SYKES Greenhouse Gas Inventory Results SYKES Initiatives Awards and Recognitions 2015 Goals Sharing our story 2 P a g e
3 A MESSAGE FROM CHUCK SYKES, CEO Sykes Enterprises, Incorporated has been on a steady path of positive change and refinement, making measurable progress on key initiatives including sustained growth, operational efficiencies, and diversifying our services by adding new technologies and work-at-home models. While these activities have added to an already strong foundation, it is time to share our vision of balancing our economic goals with those of the environment, our people and the communities in which we operate. Since 2013 SYKES has made marked improvements in our global sustainability practice. We calculated a 2013 baseline greenhouse gas inventory and have expanded it to include additional areas of our operations. Our CDP Supply Chain reporting has improved and in 2015 includes emissions reductions initiatives managed by our SYKES Global Sustainability Committee. We also received 2014 Carbon Neutral Certification in Costa Rica, an effort that helped engage employees around the environmental impacts of our operations. SYKES continues to positively impact our communities. For example our SYKES Academy in Costa Rica has proudly graduated 4000 participants, who have all received job offers. We will support our local communities through various outreaches, including Hillsborough County First Responders families with Coy L. Sykes Memorial Scholarships and participate in conversations around corporate philanthropy. We also recognize that responsibility and opportunity line our entire value chain, from employees and suppliers to customers, shareholders and our communities. At SYKES we know we can do more, and in 2015 we will take our first steps towards implementing the Global Reporting Initiative; engaging stakeholders to help us identify our areas of most significant economic, environmental and social impact; and continue to define what sustainability at SYKES is. We invite you learn more about where we are today and follow our journey at Sincerely, Chuck Sykes President and CEO 3 P a g e
4 OVERVIEW As a global provider of customer support solutions and employer of over 50,000 employees across twenty two countries, our people are at the core of what we do every day. We consider them our greatest asset. Whether interacting with customers, technology assets, buildings, the environment or their communities, SYKES works to provide a safe, efficient, supportive and healthy work place. Sustainability at SYKES encompasses many areas: Operational efficiencies regarding energy, waste, and water to lessen our impact on the environment and remain a profitable company; Labor practices, human rights, and adherence to our Global Standards of Conduct; Responsible disposal of technology; Aligning community participation with our business mission, positively impacting personal lives and local economies We recognize the importance of a responsible supply chain, both our own and that of our clients. Our business activities encompass supplier diversity, ethical behavior, security, human rights and environmentally sound operations. These are subjects that our clients, people and communities want to know more about. SYKES is strategically approaching sustainability, as reflected in the organization of our Global Sustainability Committee. Our priorities for 2015 include following the Global Reporting Initiative (GRI) implementation guidelines to discover the most material aspects of sustainability at SYKES. Impactful activities stretch along our entire value chain, and we are committed to finding ways to support collaborative opportunities for positive change. Organizational Profile Employees: 50, Revenue: $1.33 billion Countries: We operate across 22 countries in 67 customer contact management centers: 18 centers across Europe and Egypt, 21 centers in the United States, six centers in Canada, four centers in Australia and 18 centers offshore, including the People s Republic of China, The Philippines, Costa Rica, El Salvador, India, Mexico and Brazil. Markets served: Communications, Financial Services, Technology, Healthcare, Retail and Travel Languages Served: P a g e
5 Sustainability Structure at SYKES Global Sustainability Committee The SYKES Global Sustainability Committee is made up of Senior Managers, Directors and Global Vice Presidents from Accounting, Corporate Communications, Data Security, Ethics, Finance, Global Delivery, Health & Safety, Human Resources, Information Technology, Legal, Procurement, Real Estate, and Strategy. The committee also includes a principal officer of SYKES. The purpose of this committee is to promote sustainable business practices and create awareness of our ongoing sustainability initiatives through: reporting our carbon footprint through international questionnaires, planning and centralizing our corporate sustainability initiatives and engaging with various stakeholders to share global best practices. Regional Teams Our Latin America, Philippines and United Kingdom operations have regional teams that are focused on the environmental, economic and social aspects of our operations. As our sustainability practice grows, we will share best practices with other regions and support the growth of additional teams and programs. ENGAGING ON SUSTAINABILITY Our Stakeholders and How We Engage Engaging with our clients and our vendors is a top priority for SYKES. We encourage dialogue with stakeholders and broaden the subject areas to encompass sustainably focused topics. We encourage those with questions, comments or feedback to us at sustainability@sykes.com. Employees SYKES recognizes that employees are a key driver in our sustainability practice and we want to engage with all of our employees from a global perspective. We host quarterly global town hall meetings, which are delivered through a live broadcast and recorded. These quarterly town hall meetings include an address from our CEO, Chuck Sykes, as well as innovative ideas and best practices globally and end with a question-andanswer period. In addition, we conduct an annual employee survey to gather data around employee satisfaction and deliver annual training, which covers our Employee Code of Conduct, Anti-Fraud, Harassment, Safety, Security and Work-Life Balance. SYKES employees also have biannual one-on-one performance and career management meetings with their direct manager. Customers SYKES is actively engaging with our customers who are leaders in sustainability, and working to incorporate their thoughts and ideas into our plan. We are communicating through various supply chain sustainability questionnaires and client audits; as well as in conferences regarding our sustainability practices as SYKES. We also participate in annual customer events and summits globally. 5 P a g e
6 Suppliers As part of our sustainability program, we work with our supply chain to ensure that they conduct business with sustainability in mind. Through our SYKES Supplier Code of Conduct, supplier diversity questionnaires, and meetings with our suppliers, SYKES is consciously expand our influence through our supply chain. Community Partners and Resources SYKES has always played an active role in the communities in which we operate, working with a think global, act local mentality. Our employees participate in a variety of local community events and deliver education through SYKES Academy, various boards and councils. For more information on our impact in the community, please visit REPORTING FOR TRANSPARENCY Reporting sustainable activities increases transparency, trust and collaboration among all of the partners in the SYKES value chain. We have chosen to respond to widely known global reports to disclose our sustainability practices. Our 2014 activities included a Carbon Disclosure Project (CDP) supply chain report, EcoVadis response specific to the call center/support services industry, and data reporting through Ecodesk. Our growing focus on sustainability is reflected in the overall score improvement with both CDP and EcoVadis. CDP is an international non-profit providing a global system for companies to measure, disclose, manage and share their impact on the environment. The CDP works to motivate companies to disclose their carbon footprint on the environment and natural resources and take actions to reduce them. SYKES completed our third CDP supply chain report on July 30, 2015, which included our baseline greenhouse gas inventory. SYKES year-over-year results are included below. EcoVadis creates simple and reliable scorecards with over 150 categories and 21 Corporate Social Responsibility criteria to help reduce risk and improve supplier performance. Progress continues to be made on all criteria with regards to environmental policies, labor practices & human rights, fair business practices, and sustainable procurement matters Score 2014 Score CDP 19 EcoVadis 31/ (C) Average Supply Chain Response Score: 53 46/100 (Awarded Silver Recognition Level) 6 P a g e
7 Ecodesk is a global supply chain sustainability service provider providing a toolset for detailed analytics of the environmental and social impacts of the supply chain. SYKES completed our third response to Ecodesk on July 30, SYKES is proud to be one of the few BPO companies participating in these questionnaires and is pleased to be in sync with many of our larger clients. We aspire for continuous improvement within our sustainability scores and practices. SYKES GREENHOUSE GAS INVENTORY In 2014, SYKES completed our baseline greenhouse gas (GHG) inventory and conducted a qualitative inventory of efficiency practices among our 72 site locations. During our inventory, we found that 70% of our sites have implemented initiatives for operational efficiency in energy usage such as lighting upgrades, updated heating and cooling systems, energy efficient windows or tinting, landscaping for shade and data centers designed for energy efficiency. Our sites have also focused on reducing water consumption. More than 60% of sites have implemented practices or installed features to increase efficient use of water with updated chiller units, low flow faucets, and water filtration systems. One of our locations in Costa Rica has implemented a rainwater catchment system, which provides water for almost six months out of the year. SYKES also practices waste reduction strategies, with 71% of our sites using a third party vendor to implement recycling programs. Our site in Kalmar, Sweden offers on-site composting and all US sites are required to use an EPA compliant electronics recycler (those outside the US use an EPA equivalent). Results In our baseline year (utilizing 2013 data), SYKES reported on Scope 1 (combusted fuel) and Scope 3 (Purchased Electricity from Upstream Leased Assets) emissions. SYKES total carbon emissions was 30,302 tonnes or.77 tonnes per employee. The SYKES Global Sustainability Committee continues to assess our impact and identify areas of opportunity to more efficiently utilize resources. Our 2015 CDP Supply Chain response contains an inventory of emissions reduction initiatives and their stage of implementation including; building retrofits, solar installations, and even increased use of bicycles in certain regions. We will set goals for increased environmental performance and outline the supporting activities. We are also working towards calculating additional Scope 3 emissions for our 2016 response to include travel and waste emissions. 7 P a g e
8 SYKES INITIATIVES SYKES relies on efficient operations to provide a safe and healthy workplace for our employees, reduce our impact on the environment, and optimize profitability. We share ideas, best practices and discuss goals through our Global Sustainability Committee while keeping local culture and geographies. The SYKES Environmental Policy is a global policy that encourages regionalization based on different environmental characteristics among the 22 countries and 72 sites where we are located. For instance, our Galashiels site is ISO14001 Certified (Environmental Management System), with a focus on reducing package waste, while our Costa Rica operations have achieved carbon neutral certification. ComprometeRSE Within our Costa Rica operations, SYKES has a team of full-time sustainability specialists who manage ComprometeRSE, SYKES Latin America s corporate social responsibility strategy. Inspired by the United Nations Global Compact and the ISO 26000, the program is currently supported by more than 2,000 volunteers in the region. ComprometeRSE focuses on four main areas: people, operations, the community and social development. Costa Rica pledged to become carbon neutral by 2021 with the goal to offset environment impacts by protecting nature, reforesting, and supporting proenvironment practices. SYKES Costa Rica made the commitment to the environment and employees, suppliers, and clients to be the first carbon neutral contact center in the region. In 2008 an Environmental Committee was formed and over the next few years, the team developed various initiatives beginning with workshops and training sessions to educate our local employees. In 2010, SYKES Costa Rica received training on carbon standards, and in 2012 began measuring carbon emissions. In 2013, policies and procedures on emissions management were reviewed and reduction initiatives were implemented. In 2014, SYKES Costa Rica applied for carbon neutral certification; and in November the Government of Costa Rica awarded the Carbon Neutrality seal to SYKES Costa Rica. This team also manages one of our most important initiatives, SYKES Academy, which provides English training for job candidates who do not meet English proficiency requirements. To date, SYKES has provided job offers to over 4,000 program graduates and impacted over 12% of the local working community. Environmental, Energy and Water Initiatives Our sites in Costa Rica, El Salvador, and Manila are in the process of evaluating the installation of solar panels. Our regional Enercon team in the Philippines is also currently evaluating a water catchment and filtration system to reduce the usage of plastic water bottles. SYKES has a well-developed Employee Health and Safety Program, and many of our sites have additional features for the benefit of individual health. Over 75% of sites take part in one or more of the following: regular indoor air quality testing, the use of certified green cleaning products, and steam cleaning (nonchemical) HVAC coils. 8 P a g e
9 Other Social Initiatives SYKES is committed to making a positive social impact, and many sites participate in local corporate social responsibility programs where employees engage with the local community. Examples include programs such as the Edinburgh Breakfast Club, Costa Rican Beach Cleanup, and Habitat for Humanity. SYKES also provides educational facilities and equipment to underprivileged communities, increasing access to education through relevant and sustainable programs. Several of our sites have special features to benefit the employees. All of our sites in the Philippines provide Mother s Rooms for the privacy and comfort of pregnant and nursing mothers. Our Lakeland, FL site features adjustable height desks. Personal development opportunities for employees is important to SYKES. Some of our opportunities include higher education classes or training and development programs, which are offered at 13 of our site locations. Saint Leo University has a presence at one of our Lakeland, FL sites and provides higher education classes from the site. We have recently offered 25 full scholarships for SYKES employees who are registered for classes at the Saint Leo University Lakeland Education Center. SYKES also offers a tuition reimbursement program to our employees. AWARDS AND RECOGNITIONS EcoVadis Silver Recognition Award SYKES completed our second response to EcoVadis in 2014, earning the 2015 CSR Rating of Silver Recognition Level. This ranking has placed SYKES among the top 30% of performers evaluated by EcoVadis. Carbon Neutral Certification: Costa Rica In 2014 SYKES Costa Rica received a Carbon Neutral Certification by The National Institute of Standardization Association of Costa Rica (INTECO). Included in the certification for SYKES operations in Heredia, Moravia and Hatillo were direct and indirect emissions of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons and employee travel. 9 P a g e
10 2015 Sustainable Business Award, the Sustany Foundation Now in their 7th year, the Sustainable Business Awards, sponsored by the Sustany Foundation, recognize and honor for-profit businesses in the Tampa Bay Area that engage in practices that increase economic opportunities and improve the environment and community. SYKES was recognized for contributions in building a sustainable economy in Tampa Bay, while embracing the Triple Bottom Line advancing the interests of People, Planet & Profit through innovative practices, products and services. In 2014 SYKES was recognized with various awards demonstrating our social responsibility including: 2014 Association of Fundraising Professionals Florida Suncoast Chapter, Philanthropic Corporation of the Year Award. This link provides insight from Chuck Sykes on how our philanthropic efforts help meet community needs Nominee, Champions of Change White House Award Finalist, Most Valuable Military Employer by civilianjobs.com. To date, SYKES has hired more than 1,000 veterans, spouses and caregivers. For more information please click here. YET TO COME Being a good corporate citizen also includes a responsibility to our shareholders. To further our sustainability program, SYKES will use the Global Reporting Initiative Implementation Guidelines to discover our most significant impacts and manage the risks and opportunities associate with them. This will allow us to discover areas of competitive differentiation and profitability, drive revenues and increase market share. Over the coming year, SYKES will: Develop and deploy a global standard process for data collection of Scope 1 & 3 greenhouse gas emissions, allowing us to better track Intensity Factors. Distribute the Supplier Code of Conduct to current suppliers; including methodology for tracking and recording those in compliance. Research objectives and begin to define resource efficiency goals around our facility efficiencies, including continuing to evaluate alternative energy sources and waste reduction. SHARING OUR STORY Stay up to date with our progress, initiatives and documents at Have a story to share, question, comment or need additional information? Please us at sustainability@sykes.com. 10 P a g e
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