GEMI - BSR Survey on. Sustainable Business & Strategy: Views From the Inside. November 15, Summary Presentation

Transcription

1 GEMI - BSR Survey on Sustainable Business & Strategy: Views From the Inside November 15, 2006 Summary Presentation

2 Participant Overview This survey examines aspects of corporate social responsibility programs management within GEMI and BSR companies. 54 responses to the survey; not all respondents completed all questions. Broad industry coverage; however, most respondents are headquartered in North America Q1. Which industry best describes your company's primary business? (n=54) Q2. In what region is your company headquartered? (n=53) Other (not specified) 31% 35% Products 11% Europe Food & Agric. Transportation 2% 4% 6% Finance 7% IT & Communications 15% Oil, Gas, Minerals North America 89% 1

3 Participant Overview The majority of respondents (77%) are with companies that are BSR members; 46% of respondents are with companies that are GEMI members. Q4. Is your company a member of BSR, GEMI or both? (n=53) Both 23% GEMI (Only) 23% BSR (Only) 54% 2

4 Highlights Companies appear to have made significant strides in addressing CSR (a term that includes sustainability). Survey Highlights CSR has a high profile within respondents companies. CSR is tracked and publicly reported. CSR efforts have delivered business value. Processes to tie CSR performance to executive compensation lag other processes aimed at addressing CSR. On the whole, non-consumer product companies seem to be further along in the implementation of processes related to CSR than consumer product companies. 3

5 High Profile of CSR Within Companies Sustainability is treated as an important subject at the highest level of respondents companies. Q11. Our CEO has made the company commitment to sustainability clear in a public manner. (n=46) Q12. SD is discussed at the Board of Directors level. (n=46) or 15% 7% 7% 36% 72% Don t Know 2% 7% 9% or 17% 28% 65% 35% 37% 72% of respondents agree (or strongly agree) that the CEO has clearly communicated the company s commitment to sustainability to the public. 65% of respondents agree (or strongly agree) that SD is discussed at the Board level. 4

6 High Profile of CSR Within Companies Seventy-nine percent (79%) of respondents believe that there is a strong connection between their company's words and actual support for CSR. Q48. There is a strong connection between my company's words and actual support for CSR. (n=38) or 18% 3% 24% 79% 55% 5

7 High Profile of CSR Within Companies Sixty one percent (61%) of respondents believe that their company s sustainability work is aligned and coordinated with its overall business strategy. Q20. Our sustainability work is well aligned and coordinated with our overall company strategy. (n=43) 16% 2% 16% or 21% 61% 45% 6

8 High Profile of CSR Within Companies Respondents companies also tend to integrate social considerations into product design and procurement. Q33. We have integrated social considerations into the core of our product design processes. (n=43) Q35. We have integrated social considerations into the core of our product procurement processes. (n=43) 26% 7% Don t Know 19% 2% 16% 39% 46% 51% 28% or or 28% 35% 7

9 CSR Tracked and Reported Typically, respondents companies have KPIs for all aspects of CSR. Q14. Has your company established organization-wide targets or KPIs (key performance indicators) around the following? No Yes 14% Employee H&S 86% 16% Environmental 84% 23% Ethics 77% 30% Supplier 70% 30% Labor 70% 42% Community & Social 58% 100% 80% 60% 40% 20% 0% 0% 20% 40% 60% 80% 100% Percentage of Companies Percentage of Companies 8

10 CSR Tracked and Reported Seventy nine percent (79%) of respondents are with companies that publicly report on sustainability goals; however, only 45% believe that reporting is an invaluable business tool. Q23. We report our sustainability goals and progress publicly in print or on the web. (n=42) Q24. Reporting is seen widely as an invaluable business tool for us. (n=42) 26% disagreed that reporting is an invaluable business tool. 7% 2% 5% or 12% 21% 17% 46% 79% 45% 28% 33% or 29% 9

11 CSR Delivers Business Value Most respondents agree that environmental (66%) and social (68%) efforts have had strong positive impacts on their company s business success. Q50. Our overall environmental efforts have had strong positive impacts on the success of our business. (n=38) Q51. Our overall social responsibility efforts have had strong positive impacts on the success of our business. (n=38) Don t Know 5% 3% 8% or 18% 29% 66% or 24% 8% 21% 68% 37% 47% 10

12 CSR Delivers Business Value Sixty-seven percent (67%) of respondents agree that their companies have realized gains in process and product improvements as a result of sustainability efforts. Q42. We have realized important gains in process and product improvements as a result of our sustainability efforts. (n=40) Don t Know 14% 3% 3% 10% or 13% 67% 57% 11

13 CSR Delivers Business Value Almost all respondents (94%) believe that CSR and EH&S will have important impacts on their company s business strategy over the next five years. Q49. CSR and EH&S will have more important impacts on our business strategy over the next 5 years. (n=38) 3% 3% 45% 94% 49% 12

14 Tying CSR to Performance Most respondents (56%) do not agree that management compensation ties directly to environmental performance in their companies, and 47% do not agree that it ties to social performance. Q36. Executive business management compensation is tied directly to our environmental performance. (n=43) Q37. Executive business management compensation is tied directly to our social performance. (n=43) 56% 16% Don t Know 40% 7% 21% 16% or 47% Don t Know 14% 33% 7% 2% 32% 12% or 34% 13

15 Industry Comparison For the most part, non-consumer product companies appear to be further along in the implementation of processes related to CSR. Q13. Sustainability concerns are an integral part of annual strategic goal setting process at the following levels of our business Non- Q16. Our organization-wide KPIs have been an effective tool that focuses staff attention on these issues. Company wide Business unit Site level Individual 46% 40% 48% 40% 64% 67% 60% 62% Non- 50% 79% 0% 20% 40% 60% 80% 100% % or Q17. We have established KPIs at other levels of the organization including: 0% 20% 40% 60% 80% 100% Q23. We report our sustainability goals and progress publicly in print or on the web. Non- Division Business Unit Site Level Individual 27% 52% 46% 54% 56% 76% 82% 80% Non- 62% 86% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 14

16 Industry Comparison But consumer product companies are further along in two aspects of processes related to social considerations. Q35. We have integrated social considerations into the core of our product procurement processes. Q44. We have strong measurement systems to assess our social impacts. Non- 45% Non- 30% 64% 54% 0% 20% 40% 60% 80% 0% 10% 20% 30% 40% 50% 15