Sustainable Development: Climate Change, and Corporate Social Responsibility: An Emerging Role for ISO Standards

Transcription

1 Sustainable Development: Climate Change, and Corporate Social Responsibility: An Emerging Role for ISO Standards Dan Gagnier ISO/TC 207 Chair Stockholm 2002

2 Presentation Outline Introduction A couple of Words about the Earth Conference ISO/TC a Pioneer TC Climate Change The extent of the problem The policy and business response Where do ISO Standards fit? CSR Conclusions

3 General Implications Embedded in Action Plan Reduction of species loss will have greater impact on a company that has a greater percentage of its reserves in environmentally fragile areas. Reducing poverty ie. a company with a large presence in the developing world has to consider how its work on sustainability issues can contribute directly to poverty alleviation in its operating areas. Global companies should take as much action as they can within their sphere of operations to address global climate change, as well as seeking out more pragmatic, long-term alternatives to Kyoto. Productive new/focused partnerships a key theme of the summit, driven by a recognition that no one can solve macro sustainability problems alone. Sorting out partnerships and getting them right will become more urgent.

4 Major Trends & Ten Year Agenda Trend for an increasing cultural presence of major NGOs; civil society voices will be louder than ever. This is supported by data showing that public trust continues to move to NGOs as the most trustworthy institutions Accountability, and not just corporate responsibility, is essential and that reporting is a key element of accountability. Corruption/bribery was widely recognized as a fundamental sustainability issue, affecting as it does the governance of nations in the best interests of the majorities. Energy and water were confirmed at the summit as the resource battlegrounds of the 21 st century.

5 Alcan Challenges and Conclusion Risks and opportunities will be created through implementation of SD policies Case Study: Energy and Aluminum Large and increasingly scarce energy input required Demand will drive need to demonstrate responsible use of power Leases will remain subject to community approval Flexibility for the use of power may be restricted Need to focus on: benefits of the product the reputation of the industry, and the contribution of the operation to the community and related stakeholders Continue, and drive, efforts across Alcan that identify and promote sustainability approaches that support our business case / ALCAN

6 Sustainable Development Underpinnings of a new business reality The following cross cutting issues will play an increasing role in the business environment Corporate Accountability Transparency and Reporting Sustainable Livelihoods (Poverty Alleviation) Partnerships Environmental Fiscal Reform Transfer of costs from Goods to Bads Such issues have become key elements in the position promoted by civil society, resulting in Increased public attention/pressure Expectation that companies, particularly leadership companies, will demonstrate progress in these areas Increasing evaluation of sustainability performance of individual companies by external / third parties (e.g.; Dow Jones Sustainability World Index, FTSE4Good, socially responsible investment funds, etc.) / ALCAN

7 Alcan Categories: Comprehensive System 0. Company profile 5. Competitiveness 11.Rights 1. Management efforts 5.1 Long-term profit 11.1 Discrimination 1.1 Corporate Governance 5.2 International competitiveness 11.2 Human rights 1.2 Policies, committment, values 6. Economic contribution 11.3 Employee Rights 1.3 Strategies 6.1 Employment created 11.4 Forced Labour 1.4 Management Systems / Directives 6.2 Public revenues generated 11.5 Child Rights 1.5 Guidelines / procedures / protocols 6.3 Economic contribution generated 12. Community involvement 1.6 Targets and performance 7. Value chain 12.1 Efforts to understand community concerns 1.7 Auditing 7.1 Customer relations 12.2 Corporate role in the community/region/country 1.8 Organizational learning 7.2 Supply chain management 13. Resource Management 1.9 External recognitions 7.3 Use phase aspects 13.1 Energy 1.10 Stakeholder dialogue 7.4 After use phase aspects 13.2 Water 1.11 Communication 7.5 Life cycle aspect 13.3 Major raw materials 2. Costs 8. Aquisitions / Divestments 13.4 Auxillary materials 2.1 Environmental cost accounting 9. Human health and safety (H&S) 13.5 Land use / Biodeversity 2.2 Social cost accounting 9.1 Safety 14. Pollution prevention 2.3 External effects 9.2 Health 14.1 Compliance 3. Investments and Innovation 9.3 H&S performance 14.2 Air emissions 3.1 Investment 10. Employees relation 14.3 Effluents to water 3.2 Innovation 10.1 Quality of work 14.4 Waste 3.3 Investors relations 10.2 Types of work organisation 14.5 Transports 3.4 Co-operation with science (external) 10.3 Worker participation in decision-making 3.5 BAT production processes 10.4 Education, qualification, training 4. Economic stability 4.1 Financial performance 4.2 Risk & Crisis management systems

8 Examples: Existing Tools For Comprehensive System CATEGORIES TOOLS 0. Company profile Alcan Facts Standards/Integrated 1. Management efforts Sustainability report 2001 ISO Costs Annual reporting Certifications 3. Investments and Innovation Business strategy 4. Economic stability Financial database 5. Competitiveness Marketing database 6. Economic contribution Financial reporting 7. Value chain Product Stewardship +? ISO Aquisitions / Divestments 9. Human health and safety (H&S) H&S database OSHA Employees relation 11. Rights Code of Conduct 12. Community involvement 13. Resource Management E database ISO Leading and lagging indicators have to fit into this system to help assess progress and manage a sustainable development

9 The Johannesburg Business Pledge for Action Sustainability is the Opportunity which we embrace Responsibility is the Standard by which we should expect to be judged Accountability is the Obligation which we assume Partnership is the Pathway which we pursue Maintaining leadership will require meaningful actions that build value for shareholders and our other stakeholders / ALCAN

10 ISO TC 207 a Pioneer TC Work towards Sustainable Development Engage Developing Countries in leadership roles----twinning Engage NGOs ----NGO Contact Group Ensure that international trade is enhanced Always consider SMEs

11 The extent of the Climate Change problem...

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13 CO 2 Emissions Equity?

14 Potential Impacts

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16 Where Do ISO Standards Fit? Int l Standard UNFCCC / IPCC for Parties International Standards ISO e.g. UK ETS National Standards of parties Common Standards Initiatives Global Reporting Initiative, WRI/WBCSD GHG Protocol Company Standards

17 The ISO Response ISO ISO Technical Management Board Technical Advisory Groups Technical Committees Technical Committees Ad Ad Hoc Hoc Group on on Climate Change TC TC Environmental Management ISO/TC 207 WG5 ISO/TC 207 WG5

18 ISO / IEC Accreditation and Conformity Assessment Guidance Can Be Adapted or Developed for Use in GHG Programs

19 Existing ISO Standards Can Be Used As Part Of National Actions Or Business GHG Management Programs

20 ISO and GHG Management Environmental EMS Management Systems Set, monitor and verify GHG objectives and targets. Environmental Auditing: Auditing Audit GHG performance against criteria. Environmental Life Cycle: Life Cycle Assessment Model/develop quantitative inventories of GHG emissions. Environmental Labelling: Labelling Communication of product, project or company performance. Environmental Evaluation: Performance Evaluation Development of performance indicators. Design Design: for the Environment Integrating GHG reductions through design.

21 ISO Applications EMS EA EPE LCA Ilumex AIJ Project Mexico SUSCOF AIJ Project Costa Rica Pecom Forestal Argentina WBCSD AIJ Projects (12) Latin America BP Worldwide Alcan Inc. World-wide A. H. Marks United Kingdom Energy Efficiency Sustainable Agriculture Sustainable Forestry Various Energy Efficiency Energy Efficiency Energy Efficiency

22 Malaysia-Canada Proposal The Creation of ISO/TC 207 WG5 Title: Scope: Guidelines for Measuring, Reporting and Verifying Entity- and Project-Level Greenhouse Gas Emissions International Standard; New ISO TC207 Working Group; GHG inventory principles; Entity-level GHG emissions measurement; Project-level GHG emissions/removals measurement; GHG inventory reporting; GHG inventory verification.

23 Potential Benefits Enhance the environmental integrity of GHG measurement; Promote the reduction of GHG emissions; Increase consistency, transparency and credibility in GHG accounting; Reduce GHG risks or liabilities; Increase investor confidence; Facilitate trade of GHG units.

24 Key issues for ISO - 1 Maintain a dialogue with UNFCCC Continue to raise awareness in business groups Develop standards that facilitate positive action on climate change Co-ordinate standards development activity Effectively promote existing ISO standards Evaluate need for new work and deliver climate change standards in timely manner

25 Key issues for ISO - 2 An ISO GHG climate change standard should: Be useable in domestic, regional and international frameworks Be developed using processes which are transparent, non-bureaucratic and keep transaction costs low Support but not duplicate the work of the IPCC, UNFCCC and others (e.g.; WBCSD / WRI) Focus on policy neutral, technical solutions

26 New WG5 - Ad Hoc Groups P- and O-Members invited to nominate experts to cocoordinate Ad Hoc Groups. Based on technical expertise, geographic representation and developed/developing country twinning. Ad Hoc Group Co-coordinators Entity Measurement Project Measurement Verification Cross-Cutting Subjects USA Japan UK Germany Brazil India Czech Republic Ecologia

27 Corporate Social Responsibility Recent History results in a? implication of Corporate Responsibility on shareholders, Consumers, and other Stakeholders Many CSR Initiatives: Intergovernmental Investment driven Industry Driven NGOs Faith based Multi Stakeholder

28 CSR Initiatives call for The creation of norms or standards Development and application of accepted CSR indicators Techniques for engaging stakeholders Auditing and Verification processes Transparency, and public reporting and in many cases, A means of comparative evaluation / assessment of performance (which is not consistent or uniform, and is constantly evolving)

29 COPOLCO Resolution 20/2002 Taken in response to a Council request for advice Proposes the creation of a Strategic Advisory Group to develop a proposal to assess the development of a CSR MS COPOLCO ready to prepare a Guide 72 justification COPOLCO s Global Markets WG will continue to assist

30 ISO/TC 207 s Resolution 23/2002 Create an Ad-Hoc Group on Corporate Social Responsibility Creates an ad-hoc group to review the recommendations of COLPOCO Resolution 20/2002, existing Corporate Social Responsibility guidelines, the potential application of existing ISO standards and report back to the CAG on the relevancy of this work to ISO/TC 207 in December Invites COPOLCO representatives to participate in the ad-hoc group. Requests the ISO Council to include ISO/TC207 representatives in the COPOLCO Working Group on Global Markets in completing its preliminary ISO Guide 72 study.

31 Conclusion Continued ISO/TC 207 action to support Sustainable Development, the twinning concept and NGO engagement Awareness of ISO s potential role in Climate Change has significantly increased ISO to continue monitoring international events and trends and to foster partnerships ISO has the expertise and infrastructure to make a positive contribution ISO Council needs to determine if it can constructively and effectively contribute to developing a CSR management system [recognize the need for a CSR MS and take the appropriate action]