Nachhaltigkeit in der Wertschöpfungskette verankern Wie kommt das Thema CR in die Kernprozesse?

Transcription

1 Nachhaltigkeit in der Wertschöpfungskette verankern Wie kommt das Thema CR in die Kernprozesse? Andreas Streubig, Division Manager CR, Otto Group, Hamburg

2 The Otto Group major companies in more than 20 countries 2

3 Corporate Responsibility (CR) means to operate companies in a sustainable manner Corporate Responsibility (CR): Social Responsibility and Protection of Climate, Diversity and the Environment are harmonized with economic success The starting point is the business modell and ist influence on human beings and nature along the value chain CR is not a separate topic, but influences as a cross-divisional function into all relevant divisions of a business 3

4 In a nutshell: Why do we believe in sustainability? There is an obvious objective worsening of global challenges (such as resource depletion, global climate change, increasing prosperity gap) that needs to be dealt with Rising expectations regarding transparency and prevention of negative impacts from civil society and other stakeholders Increasing legal regulation (EU Timber Regulation, reporting on non-financials, etc.) Creating a positive environment for our own business to maintain a prosperous future of the company, a. o. Permanently sufficient resources Intact ecosystems Stable, the trade-promoting societies 4

5 impact enables effective and efficient CR management along the whole value chain Overview of the impact management process in three steps 1. Materiality analysis and strategic grading 2. Develop measures and assess according to cost/benefit 3. Implement under umbrella of CR Strategy quantitative evaluation Innovation Priority Stop Base qualitative evaluation CR Strategy % CO 2 50% FSC Paper 100% Social Programme 100% FSC Furniture 100% Sustainable cotton + Reduce negative impacts Control measures 5

6 The biggest challenge to effective and efficient sustainability management at Otto Group is the high degree of complexity Example: complexity demonstrated by textile manufacturing Yarn Chemicals Steel Machines Machines Production Lubricant Production Fabric Buttons Power Production Power Transport Services... Machines... Transport Computers Services Production Real estate > 1 million products offered > 70 manufacturing countries... Paper... 6

7 To make complexity controllable we currently use a simplified and clustered value chain structure Sample value chain for textiles 1Raw materials and processing Refinement Weaving and knitting Spinning yarn Raw material extraction 2 Finishing Sewing Finishing and packaging 3 Retail Distribution Sales Warehousing Transport 4 Customers Use Disposal and recycling 7

8 1 impact step First, environmental impacts and social risks are evaluated using a modelling tool called estell Key data sources and features of calculation system Corporate data Company financial data Use of quality-assured data and scientifically recognised methods Coverage for the whole value chain Consider essential sustainability topics Exiobase, ILO, World Bank, UN expanded input-output calculation as per Leontief Raw materials/production Finishing Retail Customers Greenhouse gases Pollutants Water consumption Land use Social standards Comparability of sustainability impacts Materiality mass: external costs (environment) h risk hours (social standards) 8

9 1 impact step Environmental impact is given in Calculation system for environmental impact Purchasing data Clothing from China for 1 mn International interrelation of added value (monetised) Key environmental figures for whole value chain Physical environmental effects of whole value chain (e.g. in x kg/ or y ha/ ) For clothing from China: 1.05 kg CO 2 / g PM 2.5 / 0.09 m 3 water/ External costs of environmental resources Region-specific impact assessment with external costs (e.g. in x /kg or y /ha) On average 89 /t CO 2 55,400 /t PM /m3 water External costs of environmental costs in the value chain 192 k (for CO 2, PM 2.5 and water) 9

10 1 impact step The results of the quantitative assessment show sustainability hotspots in the business model Biggest impacts: supply chain and consumers Environmental impacts [external costs in ] Social risks [risk man-hours] 56% 61% 38% 9% 7% 1% 28% Raw materials and production Finishing Retail Customers Greenhouse gases Pollutants Water consumption Land use 10

11 1. impact step The quantified evaluation is combined with a qualitatively assessed relevance for action Stakeholder feedback determines the x-axis of the materiality matrix y estell quantitative evaluation Innovation Stop Priority Basis qualitative evaluation x External stakeholders Internal stakeholders Reputation Regulation Business relevance 11

12 1 impact step The result of the quantitative and qualitative assessment is the new Otto Group Materiality Matrix Evaluation and strategic ranking of external impacts quantitative assessment [in and/or risk man-hours] low high Innovation Greenhouse gases Stop Social standards Pollutants Priority Water consumption Greenhouse gases Pollutants Land use Water consumption Land use Base Pollutants Greenhouse gases Pollutants Social standards Greenhouse gases Value-adding steps Raw material and production Finishing Retail Customers Impact categories Greenhouse gases Pollutants Water consumption Land use Water consumption Social standards Social standards low qualitative assessment* [external and internal action relevance] high 12

13 2 impact step Specific measures are derived and evaluated from the strategic ranking to achieve highest positive impact Example illustration of the cost-benefit analysis for measures Measures Cost [ ] Benefit* [ ]/ qualitative Estimated capital expenditure [ ] Estimated personnel cost...[ ] Quantitative benefit..[ ] Qualitative benefit... qualitative * Benefit here means a reduction in environmental impacts, in social risks and/or in action relevance for the Otto Group Benefit Benefit 13

14 3 impact step The most efficient measures are mandatory for implementation under the roof of the CR Strategy 2020 The CR Strategy has five sub-strategies, each with one overarching objective CR Strategy 2020 Raw mat./production Finishing Retail Customers Currently five substrategies Textile Strategy Durable Goods Strat. Social Programme Climate Strategy Decentralised measures in Group companies Paper Strategy each with one overarching objective 100% sust. cotton 100% inclusion -50% CO 2 100% FSC furniture 50% FSC catalogue CR incentivising: from 2014/15 achievement of CR Strategy objectives influences performance-related pay for Group Executive Board Members 14

15 Full Executive Board or CR Board of the Otto Group take CR-decisions with relevance for the Otto Group Decides Decides or prepares the decision for the full executive board Sets strategic impulse, controls, consults and prepares decisions Accomplishes pilot projects and tries implementation Are responsible for implementation Coordinates the implementation 15

16 Within the climate strategy of the Otto Group the CO 2 emission are to be cut in half until 2020 Climate Strategy Premisses Reducing CO 2 emissions will be: 1. as efficient and cheap as possible 2. achieved primarily through increasing energy efficiency 3. implemented through decentralized responsibilities Examples of measures Transport: reducing air freight, utilizing new economical vehicles and alternative engines, optimizing loads and route planning Facilities: increasing efficiency in distribution processes, lighting, IT, heating and air-conditioning, use of solar, geothermal and biomass power Mobility: fleet guidelines (max. 200 g CO2 /km) Otto Group: Tonnen CO 2 im Basisjahr 2006/07 Transport (62%) Facilities (34%) Mobility (4%) 16

17 The goal for our textile is to work against the biggest threats of conventional textile production Sustainable textil strategy The first goal we set is to source 100% sustainable cotton (currently: Bio- Cotton and Cotton made in Africa) for all own brands 2020 Cotton made in Africa (CmiA) is an initiative of the Aid by Trade Foundation that helps people help themselves through trade. Its aim is to improve the social, economical and ecological living conditions of smallholder, cotton farmers and their families in Sub-Saharan Africa. How we can save water and CO 2 by using CmiA kg CO 2 -eg/ kg raw cotton Einsparung Ø 60% CO m 3 water / kg raw cotton Einsparung 100%* 0 CmiA conventional cotton 0 CmiA conventional cotton 17 * Due to rainfed agriculture

18 Development of the sustainable assortment for durable goods Durable Goods Strategy In addition to the sustainable textile strategy a strategy for hardgoods also exists. Essential activities are already taking place for furniture and electrical equipment. Electrical appliances For electrical equipment the Otto Group is concentrating on energy savings. Wooden furniture The goal of the Durable Goods Strategy is to only sell furniture and home accessories made from FSC -certified sources by FSC is a global, not-for-profit organization dedicated to the promotion of responsible forest management worldwide. Accepted by all major NGOs, the FSC promotes environmentally appropriate, socially beneficial, and economically viable management of the world's forests. 18

19 We do not accept bad working conditions in our factories Social Programme Strategy We do have factories in risk countries. Risk countries means that there could be child labour, discrimination, excessive overtime and forced labour still exist. To implement social standards the Otto Group focuses on qualification, control and alliance to reach its long term goals. Our long-term goal is to accomblish sustainable and fair working conditions in all factories. Control of compliance of social standards/ breach of Code of Conduct Extensive offer of quality management programmes 19

20 Gaining transparency of current working conditions in factories Social Programme Strategy 20

21 Thank you for your attention! 21