Measuring and reporting on sustainability impacts

Transcription

1 Measuring and reporting on sustainability impacts Symposium Business in Development new avenues for complementarity and collaboration Vienna, 30 June 2014

2 Systain: CSR strategies for industries with complex global supply chains Hamburg Berlin Istanbul Shanghai References (selection) : Dhaka Hong Kong Systain offices Partner offices Countries of acitivites

3 Key questions driving sustainability management What are the enviromental and social effects of business activites? What are the feedback implications on business what are resulting risks and opportunities? What kind of actions increase postive and decrease negative effects?

4 Challenges for companies regarding CSR fact base on sustainability impacts CHALLENGES FOR CSR MANAGEMENT 1. Transparency of impacts How to measure across the complete value chain EXTERNAL PRESSURE 2. Determination of business effects How to determine resulting business effects (regulation, reputation, customer requirements) CLIENT SITUATION GLOBAL REPORTING INITIATIVE (GRI) G4 EU ORGANIZATION ENVIRONMENTAL FOOTPRINT (OEF) INTERNATIONAL INTEGRATED REPORTING FRAMEWORK > suppliers > 1000 products > 10 countries

5 Requirements for a quantitative sustainability fact base 1 CONSIDERATION OF THE COMPLETE LIFE CYCLE supply chain own manufacturing and retail use phase disposal/ recycling 2 CONSIDERATION OF ALL RELEVANT SUSTAINABILITY ISSUES climate environment natural resources water social compliance human health... 3 CONSISTENT VALUE AS A BASE FOR COMPARABILITY Identifying the social and environmental relevance of emissions as 1 kg CO2 or 1 kg SO2 or the use of 1 l water 4 EFFICIENT AND REALISTIC IMPLEMENTATION IN A COMPLEX ORGANISATION

6 estell top-level view Total effects throughout the value chain und sustainability topics SUSTAINABILITY IMPACT SCORECARD e estell by systain CLIMATE SUPLY-CHAIN TRANSPOR T ENERGY FACILITIES USAGE RECYCLING Comparability due to a consistent evaluation standard external costs USE OF WATER EMISSIONS Transparency of sustainability impacts throughout the value chain RESOURCES Transparency of particular contributors to sustainability impacts SOCIAL- RISKS Size of the circle or square depicting the external costs (environment) or risk hours (social risks)

7 Systains tool estell uses only readily available data MEASURING IMPACTS WITH ESTELL e estell by systain Input-Output-data 2 Environmental 2 - and socioeconimic data 3 / ha/, m 3 /, t/, hours/ GHG-Emissions of paper production: 0,74 kg/ *# 1 : e.g. SAP, Oracle, DATEV, Navision 2 : data from EU projects (Exiobase, NEEDS, FUND, TEEB) 3 : data from international statistics (WHO, ILO, Worldbank etc.) * Example Company data Procurement data (in ) from ERP-Systems 1 by product and country of origin Environmental impacts and working hours throughout the value chain External costs of environmental impacts 2 Risk hours per working hours 3 /ha, /m, /t R(h)/h EXTERNAL COSTS of environmental impacts and SOCIAL RISKS THROUGHOUT the value chain Procurement of paper: * # GHG-Emissions of procured paper: 91,4 t*# External costs of GHG-Emissions: 66 /t*# External Costs for GHG-Emissionen of procured paper: *#

8 Case study 1: Social Compliance issues due to German consumption RISIK-HOURS IN THE SUPPLY CHAIN OF THE TOP 10 SECTORS IN GER IN BILL. HOURS Textiles Textil Touristik Touristic Electronics Elektronik 2,1 1,7 3,4 35% Deutscher Textiles Textilhandel 28% 17% 20% Lebensmittel Food 1,6 Baugewerbe Construction 1,2 Tier 1 Tier 2 Tier 3 Tier 4 - n Fahrzeugbau Automotive Logistics Logistik 1,2 0,9 Deutscher Fahrzeugbau Automotive 42% Möbel Furniture und Maschinenbau Machinery 0,8 0,8 14% 23% 21% Chemische Chemistry 0,4 Quelle: Systain 2013, Wettbewerbsfaktor Social Compliance Management Tier 1 Tier 2 Tier 3 Tier 4 - n

9 estell allows to dig deeper into the structure of impacts in tiers, sectors and countries 1.2 Bn. risk hours spread over: 40% 30% 20% 10% 0% Tier 1 Tier 2 Tier 3 Tier 4-n Remaining sectors (i.e. Construction, Finance) Industry products Transports, Mobility and Telecommunication Energy Australia 1% Industrial primary products Farming and Resource exploitation 52 Mio. risk hours accumulated in: Mexico 1% Turkey 1% Europe 3% Indonesia 4% Rest 23% South Africa 9% Brasil 3% Risk working hours Tier 4 - n China 6% 28% Russia 6% India Source: Systain 2013, Competition factor Social Compliance Management (German)

10 Case study 2: The supply chain dominates the greenhouse gas emissions of most industries SCOPE-1-, SCOPE-2- AND SCOPE-3-UPSTREAM-EMISSIONS PER SECTOR* Scope 1 Scope 2 Scope 3 Automobile & Komponenten Automotive Basiskonsumgüter Consumer Staples Energie Energy Finanzwesen Financial Services Gesundheitswesen Healthcare Immobilien Real Estate Industrie Industry Informationstechnologie IT Nicht Consumer Basiskonsumgüter Discretionary Roh-, Hilfs- & Betriebsstoffe Chemistry Telekommunikationsdienste Telecommunications Transportwesen Transportation % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quelle: CDP / Systain 2014, Wettbewerbsfaktor Scope 3 Management systain

11 Nevertheless only very few companies provide a transparent picture of GHG emissions OF 175 COMPANIES (DACH) REPORT: 80% 62% 4% 140 companies Scope 1/2 108 companies Scope 3 at least 1 category 7 companies Scope 3 (upstream) complete Quelle: Auswertung CDP-Berichtsdaten (Dach), 2014, Systain systain

12 I am looking forward to an interesting discussion Dr. Moritz Nill Director Berlin Office Mail: Tel: Address: Rosenstrasse Berlin Germany

13 Driver Impacts Effects Resource scarcity Price increase Availability > Changes in cost structure and stability of supply Regulation Taxation, ETS, subsidies Material and technology ban > Changes in cost structure (direct und via supplier) Changes in disposal regulations > Changes of sales markets Customers Brand credibility and reputation Seeking for environmental performance > Increased transparency > Shift to green procurement > Shift in demand patterns Direct risks Physical effects to operations due to climate change > Threat to the stability of the value chain > Shift in markets systain