The Sustainability Quotient (SQ) Program: ULE 880 & 881 Rory Bakke, Director of Sustainability GreenBiz Group

Transcription

1 The Sustainability Quotient (SQ) Program: ULE 880 & 881 Rory Bakke, Director of Sustainability GreenBiz Group 2011 Underwriters Laboratories Inc. 1

2 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign What s Next

3 Project/Personal History Decades of experience creating green business programs 2002: ID Need for Company level Sustainability standard CA GBP legislation w/o stnds Clients asking for roadmap 2004: S-BAR seed funding from StopWaste.Org 2005/6: Head high level design group & create demo 2006/7: Hiatus - need Major standards partner 2009: Leave StopWaste and go to GreenBiz/ULE enters Christmas Eve 2009 GBG ULE Alliance signed develop ULE 880 3

4 UL at a Glance Working for a Safer World since ,000 mission driven employees 64 laboratory, testing and certification facilities Customers in 94 countries More than 20 billion UL Marks appear on 72,000 products worldwide 4

5 UL s Five Business Units Life and Health Environment University Product Safety Verification Services

6 UL Environment Product Services Certification & Claims Validation Indoor Air Quality & Env. Health EPD Enterprise Services Assessments Ratings Certifications Knowledge Services Consulting LCA Database & Directories Training

7 Strategic Alliance with GreenBiz.com founded in 1999 by Joel Makower Now, part of GreenBiz Group Mission: Defining and accelerating the business of sustainability Leading media and business information services company on greening of mainstream business Websites, research, events, peer-to-peer network of sustainability executives, ULE alliance 7

8 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign

9 A comprehensive enterprise-level sustainability program from an independent, global certification agency. A program that facilitates the integration of sustainability into an enterpriseʼs core business performance.

10 The Need Businesses gain validation & credit for sustainability commitments and achievements; do business with allied companies Customers putting pressure on suppliers to improve products and services, and take proactive sustainability measures Employees and job seekers want to work for companies they believe are responsible Investors want audited data to assess risks & opportunities associated with sustainability

11 Driving the development of our enterprise standards... Government Regulation WEEE, RoHS Carbon Cap & Trade Business Leadership Strategic Focus Supply Chain Accountability Consumer Behavior Consumer Values Education and Leadership Corporate Valuations Dow Jones Index Climate Exchanges Corporate Sustainability Convergence

12 UL s SQ Program Objectives Contribute to a common language and platform for corporate sustainability Provide tools & services for resource allocation, risk management & results driven performance Recognition of SQ program participants as they progress through their sustainability journey The introduction of auditable indicators and standards to drive corporate sustainability integration

13 The Context ULE 880 seeks to incorporate third-party audited organizational sustainability indicators, and complements existing self-reporting frameworks, and standards that address discrete sustainability issues. ISO14001, SA8000, and other protocols CDP, ISO Global Reporting Initiative UN Global Compact

14 Five domains, one score Governance for Sustainability Environment Workforce Customers and Suppliers Community Engagement and Human Rights

15 1 Governance for Sustainability Overview: The intention of the Governance for Sustainability domain is to assess the extent to which the Applicant s leadership its board, executive leadership and its senior management views sustainability as part of its fiduciary responsibility and ensures that sustainability issues are well managed throughout the organization. A B C D E Sustainability Strategic Plan and Reporting Board Oversight Internal Stakeholder Engagement Organizational Ethics Creating a Culture of Sustainability

16 2 Environment Overview: The intention of the Environment domain is to assess the extent to which the Applicant has developed and implemented a system to identify the environmental impacts of its operations and strategies and programs to mitigate or eliminate the impacts. A B C D Environmental Management Company Operations: Energy and Greenhouse Gas Management Company Operations: Water Company Operations: Solid Waste Reduction E F G H Transportation and Logistics Facilities and Land Use Organizational Environmentally Preferable Purchasing (EPP) Product Stewardship

17 3 Work Force Overview: This intention of the Work Force section is to assess the extent to which the Applicant s policies and programs foster a positive work environment and engage and motivate employees, which are the foundations of a sustainable workplace. A B C D Positive Work Environment Fostering Workplace Integrity Workplace Safety Employee Health

18 4 Consumers and Suppliers Overview: The intention of the Customers and Suppliers domain is to determine the extent to which the Applicant has aligned its sustainability goals throughout its value chain. A B C D Fair Marketing and Communications Product Safety Customer Support, Service and Complaint Resolution Sustainable Supply Chain

19 5 Community Engagement and Human Rights Overview: The intention of the Community Engagement and Human Rights domain is to ensure that the Applicant is a responsible and proactive corporate citizen. A B C Community Impacts Community Alignment Human Rights

20 ULE 880 Pilot Scoring Structure Prerequisites Core Indicators Leadership Indicators 0 points 7 Indicators Up to 159 points 19 Indicators Up to 841 points 74 Indicators To receive a Certified Score, companies must meet all prerequisites and achieve points in each of the core indicators Inventories and Baselines Policies and Procedures Performance Reporting

21 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign

22 Jan 10 Start Drafting Standards SQ Program Development Nov 15,16 Stakeholder Advisory Panel Jan 11 Apr 11 2 nd Comment Period We are here End-July through Mid Sept ULE 880 Round 1 Open Comment Period Market Engagement & Feedback Q4 11 SQ Program Launch Dec/Jan Release ISR & Response Paper Program Revisions Pilots & More Revisions 881 Development Stakeholder Engagement: 850 Stakeholders Over 1800 Comments 22

23 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign

24 Program Foundation ULE 880: Sustainability for Manufacturing Organizations ULE 881: Sustainability for Service Sector Organizations Broad coverage of sustainability issues Point-based scoring structure Certified Score achieved through a 3rd party audit process Strategic Alliance with GreenBiz

25 SQ Program Business Case Business Opportunity Weigh opportunities for operational improvements Get ahead of the game, prepare your company for certification Marketing advantages demonstrate to stakeholders your commitment to sustainability Strategic Allocations Strategic Allocations Prerequisites & Core Indicators excellent starting point to develop sustainability program Use program as baseline for resource allocations Risk Management Get the correct data to the marketplace, One Story Common platform for sustainability metrics Business Opportunity Risk Management 25

26 Current Program Overview Program Enrollment Program education & scoping services Access to tools and resources (standards, guidance, etc.) Assessment & Services Comprehensive readiness assessments Baselines of specific enterprise needs (i.e. by domain) Training Certification Programs Focus Area Certifications Specific Mark issued May start with Business Unit Audit every two years Full corporate certification the UL/SQ Mark Recognition for incremental progress Business Applications Use as a foundation for supply chain assessment Supply chain data aggregation & management Integrate program with leading enterprise applications

27 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign

28 ULE 880 Pilot Program Overview Step 1 Step 2 Step 3 Certification Kick-off Determine scope in terms of organizational boundaries and applicable leadership indicators Verification Evidence provision and review in accordance with Agreed Upon Procedures Certification Review auditor findings and issuance of certified score Audit Readiness Kick-off Determine scope in terms of organizational boundaries and applicable leadership indicators Readiness Review Evidence provision and review against guidance documentation Readiness Report Submission of report of findings and whether Applicant is ready to seek certification

29 SQ Benefits for Pilot Companies Prerequisites & Core Indicators excellent starting point for supply chain survey or scorecard ID opportunities for operational improvements and cost savings Prepare company for certification Sustainable Procurement Policy reduce risk and raise transparency of suppliers of products and services Be part of a standards program that has set a new high bar for stakeholder input and transparency Help shape the standards and SQ program Demonstrate to stakeholders your commitment to sustainability values via a 3 rd party process from a well respected, global, independent certification agency

30 == Business and SQ (Sustainability Quotient) Marketing Tracking Informative Collateral Retail 17

31 Current pilot examples Certification Readiness Assessment gap analysis of prerequisite and core indicators European distribution company & Asian electronics firm Vertical Readiness Assessment gap analysis of one or more domains Business Unit Assessment the scoping of the aforementioned assessments at the business unit level Sustainable Procurement Policy incorporate ULE 880 into your procurement policy (help reduce survey fatigue) well known US software development organization & a retailer Resource & Decision Making Tool Use ULE 880 to facilitate resource allocation for corporate sustainability initiatives; identify risks and opportunities; gut check on how your program is doing Green Tech Malaysia

32 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign

33 SQ Market Drivers Program In conversation with... Company Supply Chain Programs Federal and State Organizations (GSA, State Agencies, EPA) Retailers (e.g. RILA, Walmart, Home Depot, Best Buy) Public Agency/Institutional Purchasers/Green Biz Programs - Legislative References Alliance with large enterprise software provider consolidate & harmonize data and report formats Collaboration with prominent sustainability players (BSR, CERES, CDP, GRI, CERES, ISSP, SRI Community) Audit Firms & Consultant Partners Investor Organizations

34 SQ: Market Driver Examples In RFI & as RFP Evaluation Factor - Ask suppliers/loan or grant applicants if been evaluated and verified against a recognized corporate sustainability scorecard such as ULE 880? Policy Initiatives such as CA AB361, SB 763 Risk reduction incentives insurance rates, loan rates In Supplier Outreach Program & Bid Documents

35 Topics Short History Who Developed SQ/ULE 880? SQ/ULE 880 Context & Architecture Stakeholder Process The SQ Program SQ Pilot Program Market Drivers Campaign What s Next

36 What s Next... robust enterprise level sustainability program Incorporating Stakeholder Comments Round 2 Publish ULE 880 next month Conduct & Complete Pilots Launch SQ this Winter Services & Market Driver Collaboration Developing ULE 881 for Services Sector Pursue Global Stakeholder Process for ULE 881 Institute Auditor Training & Licensing SQ Professional Program

37 Topics Special Content for ISSP: ULE 880 Prerequisites and Core Indicators

38 Prerequisites

39 Domain Section Prerequisite Governance for Sustainability 10 Sustainability Policy 14.1 Ethics Policies Environment Environmental & Social Legacies Environmental Management System Work Force 26 Work Force Requirements 29.2 Occupational Safety Customers and Suppliers 32.2 Green Claims and Truth in Advertising Community Engagement & Human Rights 37 Human Rights Requirements 39

40 Core Indicators

41 Domain Section Core Indicators Points Available 11.3 Sustainability Reporting 10 Governance for Sustainability 13.1 Stakeholder Engagement Greenhouse Gas (GHG) Inventory: Scope 1 and Scope Water Use and Wastewater Policy Waste Inventory 10 Environment Waste Reduction Management Program Waste Reduction Targets & performance Green Building and Leasing 23.2 EPP Policy 24.2 Product Design - Life Cycle Program Incorporation Performance Management System Work Force Customers and Suppliers 28.2 Diversity and Inclusion Policy Addressing Employee Concerns / Whistleblower Protection 30.2 Access to Health Care Customer Health and Safety Reporting Complaint Resolution and Customer Satisfaction Sustainable Supply Chain Code of Conduct 10 Community Engagement and Human Rights 40.2 Human Rights Risks Assessment 10 41

42 Sustainability for Enterprises Questions and Answers. Rory Bakke Director of Sustainability GreenBiz Group