The Sustainability Code Training Concept

Transcription

1 The Sustainability Code Training Concept Overview of training courses on the Sustainability Code. German Council for Sustainable Development

2 The German Council for Sustainable Development (RNE) advisory body to the Federal government Founded by Federal Chancellor Schröder in 2001 Federal Chancellor Angela Merkel extends mandate and appoints 15 members RNE is a content-independent, multi-stakeholder body Three main tasks: Advises the Federal government on sustainability matters and the national sustainability strategy Fosters the public debate on sustainability Specifies fields of action and action projects 2

3 Sustainability. Definition according to the Brundtland Commission Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. [ ] [ ] a process of change in which the exploitation of resources, the direction of investments, [ ] technological development, and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations. World Commission on Environment and Development,

4 Sustainability implies a holistic greening of the economy... Usage of natural resources Climate-relevant emissions Stakeholder engagement Corporate citizenship Employees rights Incentive systems environmental undertaking Innovation and product management Resource management Political influence Equal opportunities social economic Value chain Qualifications Human rights Conduct that complies with the law and policy 4

5 ...and is expected by the stakeholders of an undertaking. Local governments * Rating agencies Investors * Employees * Citizens * Customers * Suppliers social environmental undertaking economic National & international policies * Civil society * Financial market Consumers * Media * Residents 5

6 Many undertakings disclose sustainability information Sustainability report Information on sustainability in the annual report Integrated report Website on sustainability performance at the undertaking Image brochure on sustainability at the undertaking Information on sustainability for individual target groups, such as investors, employees, customers 6

7 to answer stakeholders questions. Analysts look for nonfinancial parameters to evaluate undertakings. Suppliers Investors Rankings/ Ratings Employees NGOs require information on specific matters such as environmental protection and working conditions. Politicians Undertaking NGOs Politicians check need for regulation. Media Customers Location Customers expect information on product sustainability and responses to allegations. 7

8 Integrating sustainability poses a complex challenge. Analysis, planning and integration of sustainability within the undertaking Evaluation 1. Reference sustainability in undertaking s strategy 2. Determine the undertaking s key topics in light of current and future challenges 3. Illustrate the sustainability programme, including specific goals, time schedule and status reports 4. Describe dialogue processes and how outcomes are put to use 5. Deal with dilemma situations Determine the ecological and social impact as well as the value contributed by the main topics Key performance indicators (KPIs): derived from the key fields of action for measuring the attainment of goals 8

9 The Code makes corporate social responsibility tangible. Added value for companies and users, incl. lowering of transaction costs, a centralised information platform and means of comparison visibility Code logos (German/English); cooperation with market actors and international partners acceptance Integration into ratings, rankings, bond and financial markets; B2B and B2C communication, public procurement, export credit guarantees, etc. Market relevance 9

10 Main goal of the Code: re-set the framework conditions for economic success. Creates comparative frameworks to enable competitors to compare sustainability performance using standardised minimum requirements Facilitates mainstreaming through public access to sustainability information using the Code s database Promises efficiency on the market and aims to lower transaction costs and achieve standardisation through capital market actors Fosters environment for marketdriven rewards by addressing new investor groups, promoting investment opportunities and channelling capital flows into sustainable business models 10

11 An initial look shows: the Code is simple and easy to use. GRI EFFAS DNK Extent 362 pages 170 pages 56 pages Structure General Standard Disclosures Disclosures on Management Approach Economic Environmental Social Environmental Governance Social Longterm viability Strategy Process management Environment Society Criteria 58 Standard Disclosures + 92 KPI KPI Additional required data Roughly 50 % quantitative, 50 % qualitative A lot (e.g. return, EVA, operating income, etc.) 98 KPI 20 Criteria + 28 resp. 16 KPI Primarily quantitative A lot (e.g. return, EVA, operating income, etc.) Primarily qualitative Little (e.g. GHG emissions, hours spent on training) Source: Analyse aus Fachhochschule des Mittelstandes: Nachhaltigkeitsberichterstattung in mittelständischen Unternehmen, p

12 Five benefits for users 1. Makes reporting easier and comparable. 2. Meets the EU s reporting obligation and is compatible with international standards. 3. Suited to small and medium-sized enterprises (SMEs). 4. Also of benefit to civil society organisations. 5. Recognised control instrument for sustainable management. 12

13 The standard: four areas with twenty criteria Strategy Criteria 1-4 Process Management Criteria 5-10 Environment Criteria Society Criteria Strategic analysis and action Materiality Objectives Depth of the value chain Responsibility Rules and processes Control Incentive schemes Stakeholder engagement Innovation and product management Usage of natural resources Resource management Climate-relevant emissions Employment rights Equal opportunities Qualifications Human rights Corporate citizenship Political influence Conduct that complies with the law and policy The Sustainability Code is backed up by 16 EFFAS and/or 28 GRI performance indicators 13

14 The Code criteria are backed up by GRI and/or EFFAS indicators 14. Employees rights Society 15. Equal opportunities 16. Qualification 14

15 Key data on scope of validity and application The Code can be readily applied to all sizes and organisational and legal forms Relates to the same area of consolidation, such as the financial report Implementable on a comply or explain basis with greater binding character Supplemented by performance indicators relating to environmental, social and governance issues (KPIs for ESG) of GRI/ EFFAS/ DVFA Refers to: OECD-Guidelines for multinational companies, UN Global Compact, ISO Room for manoeuvre due to branch-specific differentiation, explain boxes, materiality 15

16 Impetus from Brussels: EU Commission adopts reporting obligation. The 2014/95/EU Directive has laid the foundation for the compulsory reporting of non-financial information and has thus amended the Accounting Directive. Approach: binding reporting on CSR/sustainability in accordance with the comply-or-explain approach Target group: companies of public interest with over 500 employees. Topics: environmental, social and employee-related matters, human rights, diversity as well as anti-corruption Interfaces: recognition of national and international standards (e.g. the Code) Undertakings using the Code comprehensively meet the reporting obligation requirements. 16

17 Timeframe for EU COM EU directive adopted by EU Parliament EU directive adopted by Council of Ministers Published in Official Journal of the EU EU directive comes into force Up to Directive to be transposed into national law by EU member states: method guidelines at the latest: reporting obligation EU COM Report to EU Parliament/ By Council: status of implementation of directive

18 Council recommendations on specific application. Declarations of conformity with the Sustainability Code can mark the inception of strategic sustainability communications. In this case, third-party assurance is not necessary. To raise its effectiveness on the market, the credibility of the information can be verified by an independent, third-party review. Liability for the quality of information provided rests with the undertakings. 18

19 Why the Code is suited to first-time users 1. The Code is simple, flexible and easy to handle. 2. Focuses on the material aspects; reduces complexity. 3. Facilitates the implementation of sustainability in undertakings by using a recognised standard. 4. Meets the requirements of current and upcoming regulations as well as those that business partners demand of their suppliers. 5. National training partners combined with extensive assistance in applying the Code help users to draft the declarations of conformity. 19

20 Why experienced reporters should use the Code 1. The Code is supported by Germany s government and parliament. 2. Ties in with GRI and Global Compact. 3. Provides a high degree of flexibility for corporate-specific sustainability programmes. 4. Makes sustainability performances comparable and enables benchmarking with competitors. 5. Is internationally applicable. 6. Adds comparability within the supply chain. 20

21 The Code is used by undertakings of all sizes and in all sectors. Abfallbetriebswirtschaft München * Allianz SE * AUDI AG * BASF SE * Bayer AG * BESONDERE ORTE Umweltforum Berlin GmbH * Berlin Hyp AG * Berliner Stadtreinigung AöR * Berliner Wasserbetrieben * BESONDERE ORTE Umweltforum Berlin GmbH * Bilfinger SE * BMW AG * Bundesdruckerei Unternehmensgruppe * Coca-Cola GmbH und Coca-Cola Erfrischungs-getränke AG * Commerzbank AG * Daimler AG * DekaBank * Deutsche Bahn AG * Deutsche Bank AG * Deutsche Börse AG * Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH * Deutsche Telekom AG * druckprozess GmbH & Co. KG * DZ BANK AG Deutsche Zentral-Genossenschaftsbank * E.ON SE * elobau GmbH & Co. KG * EnBW AG * Entega GmbH & Co. KG * Evangelisches Siedlungswerk in Bayern Bau- und Siedlungsgesellschaft mbh * Evonik Industries AG * Fenix Outdoor AB publ. * Flughafen München GmbH * Fraport AG * Fraunhofer UMSICHT * FROSTA AG * GESOBAU AG * Hamburger Hafen und Logistik AG * Hassia Mineralquellen * HEAG Holding AG * HEAG Südhessische Energie AG (HSE) * Henkel KgaA * HOCHTIEF AG * HOWOGE Wohnbaugesellschaft mbh * HypoVereinsbank * Igefa Handelsgesellschaft mbh & Co. KG * Interseroh * Johnson+Johnson * KESSEL AG * Kreissparkasse Heinsberg * Kreiswohnbau Hildesheim GmbH * Landesbank Baden-Württemberg AöR * Lebensbaum / Ulrich Walter GmbH * Linde AG * MAN SE * Märkisches Landbrot GmbH * memo AG * Merck KGaA * Miele & Cie. KG + Nölken Hygiene Products GmbH * NORD/LB Norddeutsche Landesbank * NORDAKADEMIE * ÖPP Deutschland AG * Otto GmbH & Co KG * Piepenbrock Unternehmensgruppe GmbH + Co. KG * Porsche AG * Puma SE * REWE Group (Zentral-AG und Zentralfinanz eg) * RWE AG * SAGA GWG * Siemens AG * SolarWorld AG * Spar- und Bauverein eg * Sparkasse Hannover * Stadtreinigung Hamburg AöR * Stadtwerke Göttingen AG * Steinbeis Papier GmbH * Studiosus Reisen München GmbH * Tchibo GmbH * Triodos Bank N.V. Deutschland * TÜV Rheinland AG * Unilever Deutschland Holding GmbH * Union Investment * UPM Kymmene * VAUDE Sport GmbH & Co. KG * Vivawest Wohnen GmbH * Volkswagen AG * Wankendorfer Baugenossenschaft GmbH * Wüstenrot & Württembergische AG * WZR ceramic solutions GmbH 21

22 The initial situation: more undertakings want to apply the Code Typical motivating factors for undertakings include: Be prepared: The EU estimates that approx. 6,000 undertakings will be immediately affected and very many more indirectly impacted (via the supply chain) by the EU s obligation to report on non-financial information. Steer sustainable business strategies: The Code sets out a clear and manageable framework and provides a structuring tool for sustainable business strategies. Create transparency: Through the Code, undertakings make their sustainability performances visible, with a higher degree of commitment and more readily comparable. 22

23 Code training partners can accompany this process using their expertise. 23

24 Interested trainers/consultants can take part in this Code training course Morning: Informational event on the Code Brief presentation of RNE, the Code and the EU reporting obligation Presentation of the Code training partner concept and the toolbox Afternoon: Code training How to use the database Practical examples Introduction to the teaching aids 24

25 ...and will then receive the toolbox and services free of charge. Requirements for Code training partners Select group of training course providers with expertise in CSR/sustainability Training courses in organisations Proficient in sustainability reporting After attending a Code train-the-trainer-course, training partners can offer their own courses based on the content of the Code toolbox, or hold training courses procured by intermediaries. Services provided to Code partners Code templates and toolbox Code training partner logo Inclusion in the Code events calendar Presence on the Code website Contact established to undertakings, associations and other intermediary organisations Undertakings procured to provide best-practice examples (Code mentors) Sending of news relating to the Code and political developments 25

26 The toolbox contains presentations, information and teaching aids. Six presentation modules Practical work sequences General information on the Code Supporting teaching aids The Sustainability Code Benchmarking sustainable economy 2nd completely revised edition 2015 WHAT IS THE CODE AND FOR WHOM IS IT INTENDED? WHERE CAN I FIND GUIDANCE AND HELP WITH THE CODE? The Sustainability Code outlines the minimum requirements for reporting on sustainability aspects. It therefore provides a framework for reporting non-financial performance and can be used by all enterprises and organizations regardless of their size or legal structure. The Sustainability Code is used in particular by financial analysts and investors to evaluate the sustainability performance of companies. Please direct your questions to: team@sustainabilitycode.org»the Sustainability Code enables companies to demonstrate their sustainability commitment to investors and consumers in a transparent, comparable and tangible way. I believe this to be a persuasive concept, because the Code is also raising great interest outside of Germany.«GREENING THE ECONOMY WITH THE SUSTAINABILITY CODE Chancellor Dr. Angela Merkel speaking at the annual RNE conference on For the latest information and guidance, such as the guideline for small and medium-sized enterprises, please go to our website: The Sustainability Code is supervised by the office of the German Council for Sustainable Development (RNE). RNE is thus affirming its aim of advancing the concept of sustainability in society and business and making the sustainability performance of companies transparent and comparable. In doing so, RNE works on behalf of the German government. German Council for Sustainable Development (RNE) Office c/o GIZ Potsdamer Platz 10 D Berlin Text no. 47, January 2015

27 The Code Team procures the participants... forward inquiries, procure best-practice examples, set up corporate profiles for declarations of conformity, add trainings to the Code calendar Code Team Code partners Code training inquire about training offer training of their own accord and on inquiry Agreement on conditions Undertakings, intermediary organisations 27

28 ...the training partners then run the courses by themselves. Train-the-trainer Cooperations courses Code training Code team trains partners Handover of toolbox Handover of the Code partner logo Ongoing support in the planning and running of events Shipment of informational materials offer Events are noted in the events calendar (Code website) and the Code newsletter Running of events procured by the Code team, or partners run their own training courses using the toolbox contents Code events 1. Advice/training to undertakings One-on-one consulting Running of seminars or training courses 2. Informational events / training courses procured by intermediaries Procurement of events between chambers of commerce/associations and training partners (e.g. seminar on the Code) 28

29 The modular training concept enables formats for specific target groups. A Basic presentation for a 1.5- hour information event, incl. a practical example by a Code mentor The Code Introduction Benefits Application Practical example 1 h 0.5 h Basic presentation on incorporating the Code into existing CSR training (e.g. sustainability reports) CSR training Sustainability reports EU reporting obligation Presentation of all standards The Code Introduction Benefits Application B Modular presentation for a 1-day workshop The Code Introduction Benefits 1 h Practical example (Code mentor) 0.5 h Transition to application 1 h Application of the Code Test/direct entry via test/live account C Break Presentation of the criteria and KPIs; presentation/ questions about data entry Communicating the Code 29

30 Code mentors: practical examples showing the Code s successful use. Code users Interest in approx. 30 min. presentation during regional Code event Report on the sustainability process and own application of the Code Lebensbaum/ Ulrich Walter GmbH Piepenbrock Unternehmensgruppe GmbH & Co. KG Spar- und Bauverein Dortmund eg Vivawest GmbH Fraunhofer UMSICHT SolarWorld AG Nölken Hygiene Products GmbH Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) HEAG Holding AG HEAG Südhessische Energie AG Entega Privatkunden GmbH & Co. KG Diepholz Hanover Osnabrück Dortmund Essen Oberhausen Bonn Windhagen Eschborn Hamburg Frankfurt a. M. Würzburg Darmstadt Stuttgart Munich Leutkirch Ingolstadt Berlin Hamburger Volksbank Sparkasse Hannover Märkisches Landbrot Coca-Cola GmbH und Coca-Cola Erfrischungsgetränke AG Commerzbank AG Deutsche Börse AG memo AG AUDI AG MAN Abfallwirtschaftsbetrieb München Flughafen München GmbH Wüstenrot & Württembergische AG elobau GmbH & Co. KG 30

31 What we offer interested trainers/ consultants. What we offer Modular training concept for the Code Code toolbox: documents to prepare and run training courses Inclusion in the Code partner network Contact established to undertakings, associations and other intermediary organisations Undertakings procured to provide practical examples (Code mentors) 31

32 Should you be interested in a Code training course or being added to the network of Code training partners, please contact the Project Office of the Sustainability Code. Contact: Project Office the Sustainability Code team@sustainabilitycode.org Telephone: +49 (0)

33 Disclaimer. This presentation has been commissioned by the German Council for Sustainable Development. The presentation is the property of the German Council for Sustainable Development and may be used by third parties free of charge. It can be forwarded to third parties under the proviso that the representations made in the presentation, including any deviations, are only disclosed to other recipients if they include the source and the Sustainability Code logo. No warranties are given as to the factual accuracy and completeness of the information contained in this presentation. Contact: Project Office the Sustainability Code Telephone: +49 (0)