SUSTAINABLE RISKS & MATERIALITY SET & SBDI

Transcription

1 SUSTAINABLE RISKS & MATERIALITY SET & SBDI

2 CORPORATE SUSTAINABILITY DEVELOPMENT PROCESS Implementation Structure Programs Responsibility Sustainability Strategy Sustainability Initiatives CSR/SD Report Supply Chain & Stakeholder Engagement Sustainability Risk & Materiality Evaluation Preliminary (Context Analysis) Employee & Stakeholders Engagement Awareness Knowledge Participation Analysis of Impacts, Risks and Opportunities ESRM Materiality Sustainability Value Financial value Non financial value Sustainability performance Economic Social Environment (Global Reporting Initiative: G4) Principles & International Standards Sustainable Development Creating Shared Value Dow Jones Sustainability Index Global Reporting Initiative: G4 Integrated Reporting

3 SESSION I: SUSTAINABILITY RISKS

4 ความเส ยงด านความย งย น (SUSTAINABILITY RISKS) ค ออะไร

5 หน าท ของเรา (หน วยงาน SD/CSR) ก บการบร หารจ ดการความเส ยงด านความ ย งย นขององค กร (ENTERPRISE SUSTAINABILITY RISK MANAGEMENT) ค ออะไร

6 SUSTAINABILITY STRATEGY License to Sustainability Economic SD Social Environment License to Operate License to Growth Performance Competitive Advantage Corporate Sustainability Trust Business Strategy & Sustainability Strategy

7 SUSTAINABILITY RISKS: AREA & TIME Society Risks Media Global Technology Economic Corporate Risks Social SD Environment Politic Sustainability Commitment Environment Economy Risks

8 Levels of the Licence to Operate Psychological Identification Trust Boundary Approval Credibility Boundary Acceptance Withheld/Withdrawn Legitimacy Boundary

9 COSO Enterprise Risk Management and Sustainability Source, The COSO ERM Framework, COSO, 2004

10 PHENOMENAL Economy Risks Technology Social Context Sustainability Corporate Environment Politic Risks Media

11 HOW TO DEFINE SUSTAINABILITY RISKS?

12 SUSTAINABILITY S03-SUSTAINABILITY INITIATIVES SUPPLY CHAIN - BUSINESS MODEL SUSTAINABILITY COMMITMENT & STAKEHOLDER ENGAGEMENT PRIORITIZES ISSUES - MAINS & SUPPORTS STAKEHOLDERS Sustainability Risk Management SUSTAINABILITY STRATEGIES - ENVIRONMENT - SOCIAL - GOVERNANCE - MANAGEMENT (LINKAGES) SUSTAINABILITY INITIATIVES

13 SUSTAINABLE BUSINESS MODEL

14 NOVELIS SUSTAINABILITY LIFE CYCLE MODEL Source, Sustainability Incorporated: Integrating Sustainability into Business: A Guide for Sustainability Practitioners, Sustainability, 2015

15 AstraZeneca SUSTAINABILITY BUSINESS MODEL Source, Sustainability Incorporated: Integrating Sustainability into Business: A Guide for Sustainability Practitioners, Sustainability, 2015

16 Coca-Cola: Value chain process Source: Coca-Cola Enterprise, Corporate Responsibility Report

17 BUSINESS MODEL Own and outsourced forest workers Land acquisition and leasing, forest partners, forest establishment and maintenance, restoration, environmental monitoring Eucalyptus plantations, roads and native reserves in own, leased, partnership and incentive areas Irrigation of seedlings and plantations, dirt road dust abatement, equipment washing, use of defensives Herbicides, insecticides, soil correctives, substrates Planters (manual and mechanized), subsoilers, harvesters, forwarders, cranes, flatbed carriers, trucks, tractors, woodchippers Use of fuel in forestry vehicles and equipment Eucalyptus leaves, branches and bark are left on the soil after mechanized harvest Risk of incorrect disposal of fertilizer packaging and other solid waste Risk of contamination of water bodies and reduction in water availability Conservation of springs (ecosystem services) Resources Eucalyptus clonal seedlings in own seedling nurseries and native species seedlings in community nurseries Eucalyptus planting (reform or rebudding), crop treatments, forest monitoring and protection. Restoration and conservation of native areas Results Long-, medium- and short-term planning, improvements in forest management, grants and environmental management Harvest, debarking, log sawing and stacking (next to roads). In Capão Bonito (São Paulo state), chipping Wood (and operations for producing chip) handling in wood chips in the field the field for removal to the pulp mills by road, waterway and railroads, and in the wood yards at the mills To facilitate understanding of the connection between our fi nancial and non-fi nancial performance, we present a simplifi ed diagram of Fibria s business model, following the proposal of the International Integrated Reporting Council (IIRC) 1. According to the IIRC, integrated disclosure must address the relevant externalities affecting the company, as well as resources and relationships used and affected, and how the business model interacts with externalities and the resources and relationships to create and maintain value over time. Forest management Supplier RESEARCH Technological research & development and innovation applied to forest management, sustainability, product and process development, and new uses of forests Pulp sales ACTIVITIES Debarking and chipping of wood logs Pulp production Extraction of pulp and separation of black liquor Bleaching of brown cellulosic pulp Treating of water, effluents, waste and atmospheric gases, recovery and Evaporation of recirculation of water and inputs, 90% of the humidity generation in the pulp, cutting of energy into uniform sheets and grouping in wired-tied bales Resources Results Building of the mill, purchase of inputs, materials and services, monitoring and environmental treatments Capture, treatment and recirculation of water Industrial equipment, vehicles Biomass produced and purchased, oils, natural gas Own and outsourced industrial workers Generation and disposal of solid waste in industrial landfills, risk of soil contamination Processing and reutilization of industrial waste in fields Generation and disposal of effluents in bodies of water, risk of contamination of rivers and sea Generation and emission of gases into the atmosphere, risks of air contamination, odor and sound generation Capture, use and loss of water Fire, oil and chemical leakages, incorrect disposal of solid waste Change in landscape, fauna and flora Recovery of degraded areas Storage and handling of pulp in mill warehouses, port terminals and distribution centers Generation of odor and noise, impacts on highways and roads Generation of jobs and income, private social investment, and tax generation Isolation of communities, generation of dust and noise, change in landscape, risk of road accidents, overloading of roads, changes in land values Customer Employment and income generation, social investment Carbon sequestration by forest (positive balance) Resources Results Risk of oil leakage and ballast water from vessels positive impacts negative impacts Ship chartering, hiring of distribution centers Forklift trucks, trucks, trains, port equipment, barges and ships Use of fuel by vehicles, ships and port equipment Own and outsourced port workers, transportation personnel Greenhouse gas emissions during highway, rail and maritime transportation operations Cargo handling on roads, ship maneuvering and transit Financial revenues from pulp sales 1. Towards Integrated Reporting communicating value in the 21st century Discussion Paper (available at Source, Sustainability Incorporated: Integrating Sustainability into Business: A Guide for Sustainability Practitioners, Sustainability, 2015

18 DEFINE SUSTAINABILITY RISKS VALUE CHAIN MANAGEMENT LIFE CYCLE Input - Process - Output Risks Risks Stakeholders Economy Phenomenal Issues Social Environment

19 SUSTAINABILITY RISK Detail Aspects Response Strategic Risks sustainability issues, many of which can have a signi cant strategic impact. These range from marketing position and changing consumer demand to strategic investments, stakeholder communications and investor relations. - Customer expectation: Green product, ethical consumption, - sustainable suppliers program - stakeholder engagement: customer, shareholder. - green product Operational Risks the impacts that surrounds business operations is expected to continue for the foreseeable future. - License to operate: brand & reputation - Violence weather - - Life cycle assessment - stakeholder engagement: community, social. - sustainable suppliers program - supplier relationships. Compliance Risks regulatory compliance risks resulting from an increasing number of international, national and regional programs. - health and safety, human rights and labor laws, anti-bribery and environmental law & regulation. - SEC (56-1) - audit and verification programs. Reporting Risks CSR/Sustainability reporting. - Sustainability standards. - Sustainability indices. - disclosure & transparency program. - GRI Report - Integrated Report - THSI, DJSI

20 SUSTAINABILITY RISKS Risks Types Economy Social Environment Why risk?

21 HOW TO EVALUATE THEM?

22 SOCIAL RISKS & OPPORTUNITIES TO AMPLIFIED

23 SUNCOR Opportunity to Amplify

24 - Imitation - Perception - Brand Impacts Risks Impact to Sustainability Strategy x 1 to 10 Short term Middle term Long term - Conflict What happens next?: Opportunity to Amplified: OTA Phenomenal Impact Likelihood - Social Media - Technology - Word of mouth - etc. OTA x 1 to 5 Sustainability Missteps

25 HOW TO MANAGE THEM?

26 ENTERPRISE RISK MANAGEMENT COMPONENTS Source, Enterprise Risk Management: Align Risk with Strategy and Performance, COSO, June 2016

27 Source: Risk and Corporate Responsibility, MTR-HK.

28 SESSION II: MATERIALITY

29 CSR & Industry Industry ประเด นม งเน นท เป นมาตรฐานท วไป ประเด นท เป นความท าทายในแต ละอ ตสาหกรรม ประเด นท สร างความสามารถทางการแข งข นให ก บธ รก จ Standards Stakeholders

30 Sustainability Risks & Materiality RISKS CONTEXTS Economic STRATEGY IMPACT STANDARDS Material Issues Social BUSINESS DIRECTION OPPORTUNITY CHALLENGES Environment STAKEHOLDER (ICE) TRENDS

31 Strategy Issues Analysis Reporting Materiality Performance Review Responsiveness Engagement adapted from: The Material Report: Aligning Strategy, Performance, and Reporting, AccountAbility, 2006.

32 Source: MTR, Sustainability Report 2015

33 DEFINE MATERIAL ASPECTS AND BOUNDARIES STEP 1: Identification STEP 2: Prioritization STEP 3: Validation STEP 4: Review Source: globalreporting.org

34 Source: globalreporting.org

35 Source: globalreporting.org

36 EVIDENCE OF ECONOMIC IMPACT Revenue Impact ISSUES Return on Capital Risk Management Management Quality Source: The Sustainability Accounting Standard Board, SASB Materiality Map.

37 IMPACT & CAPITAL Source: The Sustainability Accounting Standard Board, SASB Materiality Map.

38 Source: The Sustainability Accounting Standard Board, SASB Materiality Map.

39 Source: The Sustainability Accounting Standard Board, SASB Materiality Map.

40 MATERIALITY Source: Nestle, Creating Shared Value Report 2015

41 MATERIALITY ท มา: รายงานการพ ฒนาท ย งย น เอสซ จ 2558

42 MATERIALITY TEST