Integrating sustainability in decision-making processes

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1 Integrating sustainability in decision-making processes André Porlier Director, Corporate Affairs and Sustainable Development Société de transport de Montréal Montréal, Canada

2 Presentation outline The STM today Integration of sustainable development into STM s Strategic Plan 2020 Integration of sustainable development criteria into decision-making processes Main challenges Keys to success

3 The STM today 15th largest company in Québec, 2nd largest public transit organization in Canada, 3rd in North America permanent employees Over 1.3 million passenger rides per day Métro Bus 4 métro lines, 68 stations 759 métro cars 219 bus lines buses Paratransit 3.2 million passenger rides in 2013 A $1.3 G budget

4 Compelling results

5 Three scenarios for growth in ridership 540 million trips for a 20% reduction in GHG emissions in transport by Réel

6 Integration of Sustainable Development into STM s Strategic Plan

7 Sustainable development at the centre of STM s brand image

8 STM s approach to Sustainability First environmental protection plan (2003) Sustainable development team and committee (2008) First sustainable development report (2008) Adoption of a sustainable development action plan (2009) Adoption of a sustainable development corporate policy (2010) Sustainable Development Plan 2020 (2013)

9 Sustainable Development Plan 2020: two areas and ten priorities 9

10 Integration of Sustainable Development Plan into Strategic Plan Each action in the Sustainable Development Plan 2020 is integrated into an action in the Strategic Plan 2020 Follow-up every four months

11 Reporting Sustainable Development Report produced yearly since 2009 In line with the Global Reporting Initiative (GRI) Guidelines Assessment of STM s environmental, social and economic performance

12 Integration of sustainable development criteria into decision-making processes 1. Project prioritization : Project portfolio management 2. Project development : Design standards and criteria 3. Selection of products and suppliers: Sustainable procurement 4. Recommendations submitted to the Board of Directors: Review of compliance with the sustainable development policy

13 Project portfolio management Rigorous process to prioritize investment projects - Five stages reflect the life cycle of a project Since 2011, each project description must highlight its contribution to sustainable development Role of sustainable development team: Support project managers in identifying project s contribution to sustainable development Develop tools and guides to help identify upstream options to maximize environmental, social and economic benefits Establish guidelines to factor in sustainability contribution in project prioritization

14 Design standards and criteria Provide the terms of reference for all STM engineering projects Revision every two years: sustainability criteria are gradually added to the document green spaces, energy-efficient equipment, eco-friendly management of residual waste, etc. Role of sustainable development and environment teams gradual upgrade of sustainability criteria based on available technologies and corporate priorities and commitments (e.g. SD Plan 2020 aims for LEED certification of all new construction projects)

15 Sustainable procurement Sustainable procurement: Integration of environmental and social criteria into the procurement processes for goods and services, in a way that reduces the impact on the environment, increases benefits to society and strengthens the economic sustainability of organizations throughout the full life cycle of the product STM s tools: Corporate guidelines on sustainable procurement Handbook for application of guidelines and Guide on eco-labels Training program Role of sustainable development team: Development of tools and guides with the procurement team Support in integrating sustainability criteria in calls for tenders

16 Recommendations submitted to the Board of Directors Since 2012, all recommendations submitted to the Board of Directors must contain details demonstrating that they comply with the commitments outlined in the sustainable development policy Role of sustainable development team: Review all recommendations to maximize their environmental, social and economic benefits Challenge recommendations when appropriate Help highlight each recommendation s contribution to sustainability

17 Main Challenges Change the perception of employees Survey among employees about their knowledge of sustainability and how they perceive it Spring 2012 (1713 respondents) 96% support sustainable commitment of STM 82% link SD exclusively to the environment Perception that sustainable development only involves the corporate level Better prepare and equip employees so they can integrate SD notions in their every day work

18 Keys to success Commitment by senior management to sustainable development Establishment of SD team and committee Integration of SD into corporate Strategic Plan Integration of SD into current decision-making processes Support to company sectors when implementing actions Annual production of SD report highlighting progress Performance assessment and management review

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