Coal Industry Advisory Board

Transcription

1 Cal Industry Advisry Bard A Survey f CIAB Members n Cal and Sustainable Develpment Vlume 1 Octber 2002 Page 1 f 21

2 Summary The Cal Industry Advisry Bard surveyed its Members regarding attitudes t sustainable develpment and their rganisatins activities relating t cal and sustainable develpment. The purpse was t ascertain the degree f practical expressin being given t sustainable develpment - the subject f previus wrk by the CIAB. The questinnaire sught the fllwing infrmatin. The nature f the respndent s rganisatin; The perceived imprtance and degree f acceptance f the principles f sustainable develpment within the Member s rganisatin; The Member s views n sustainable develpment pririties fr the cal industry and Examples f sustainable develpment activities. This reprt has tw vlumes: Vlume 1 reprts, analyses and cmments n the respnses received. Vlume 2 presents the full text f descriptins f sustainable develpment activities prvided by Members rganisatins. Twenty-nine respnses were received, a respnse rate f 73%. Electricity generatrs and cal prducers were abut equally represented and there were fur respnses frm rganisatins invlved in the cal industry in ther ways. Eleven respnses were frm multi-natinal rganisatins; three frm rganisatins perating in develping ecnmies and fifteen were frm rganisatins perating in develped ecnmies. Eleven respnses related t Eurpe, eight related t multi-reginal activities; there were fur frm each f Nrth America and Asia-Pacific and tw thers. Respnses indicated that in general, sustainable develpment was cnsidered an imprtant element in decisin-making, with 83% f respnses saying it was very imprtant and a further 14% cnsidering it smewhat imprtant. There were n bvius differences accrding t rganisatinal activity and reginal fcus. Supplementary cmments supprted this view althugh a minrity cmmented that in a cmpetitive industry ecnmic cnsideratins prevailed. Ninety percent f respndents said that acceptance f sustainable develpment principles was nw mre imprtant r much mre imprtant than three years ag. Significant differences depending n rganisatinal activity and reginal fcus were nt evident. Respnses indicated a wide acceptance f sustainable develpment principles, althugh ne that was greatest in senir management and abve, with lwer acceptance amngst ther emplyees. Eighty six percent f respnses indicated that sme r much cmmercial advantage culd be gained by applying the principles f sustainable develpment. Only ne respndent saw n ptential fr cmmercial advantage. Organisatins perating in the Asia-Pacific regin recrded the highest prprtin f much advantage respnses. All respnses indicating n r little cmmercial advantage were frm Eurpe, which recrded the lwest prprtin f much advantage (30%). Respndents were asked t rate twelve actins as t their imprtance t cmpanies perating thrughut the cal chain. There was widespread supprt fr the majrity f the suggested actins within a cntext f prviding secure and lw cst energy supply. The suggested actin f Ding nthing differently was the lwest pririty verall and in each sub-categry by a large margin. The fur highest verall ranked actins were: Take actins t reduce the envirnmental impacts f cal prductin and use. Page 2 f 21

3 Prvide a secure surce f energy supply. Develp and use new technlgies that reduce the greenhuse gas and ther emissins frm cal prductin and use. Prvide lw cst energy. Sme reginal differences in pririties were nted: While 86% f respndents reprted that the principles f sustainable develpment were smewhat imprtant r very imprtant in decisin making in their rganisatin, the actin f Adpt and endrse sustainable develpment principles in rganisatins perating in the cal industry ranked sixth verall, behind mre specific actins. Nrth American respndents ranked this actin secnd, while respndents frm the Asia-Pacific regin ranked it tenth. Establish imprved ways fr engaging stakehlders was ranked tenth verall. Nrth American respndents ranked it third while respndents frm Asia-Pacific ranked it eleventh. Respndents described up t fur activities that their rganisatin had undertaken r is undertaking t imprve the sustainable develpment perfrmance f cal. The mst frequently mentined activity was air emissins reductin, fllwed clsely by research and develpment. The next frequently mentined activities were energy efficiency imprvement, public plicy advcacy, stakehlder prgrams and health safety and envirnment activities. There were very few mentins f emissins trading and CDM/JI activities. An verall assessment f the respnses is instructive - while the rganisatins that participate in the CIAB are nt representative f the glbal cal industry, the survey des give an insight int attitudes and practices within the cal industry in IEA Member cuntries. Clearly a large majrity f respndents recgnise the imprtance f sustainable develpment and its increasing influence n decisin making within the cal industry in recent years. Als, the respnses shwed that a lt f wrk is being dne t imprve the perfrmance f the cal industry. Yet there was a wide range in the extent f activities and in sme cases these did nt reflect the stated recgnitin f the imprtance f sustainable develpment. At ne extreme were respnses that indicated that changes in current practices were nt necessary r that ecnmic imperatives prevailed. At anther extreme were rganisatins that had embarked n brad initiatives t better align their practices t sustainable develpment pririties. Mst respnses were between these psitins. The range f respnses reflected the custmary evlutinary prcess ne that cmmences with a sle internal fcus n ecnmic pririties fr the business and then bradens t include lcal envirnmental issues and the cmmunity. Leading rganisatins are nw mving t lk at mre glbal issues, t recgnise and share the respnsibility fr the scial and envirnmental impacts f using their prducts (including waste dispsal) and t lk utwards t engage stakehlders. The survey respnses shw that verall there has been cnsiderable mvement frm cnsidering ecnmic issues in islatin, with high recgnitin f peratinal envirnmental issues. While there were sme specific examples, there was n evidence f cnsistent, industry-wide activity n the fllwing areas: Scial issues, Prduct issues, Glbal issues, The integratin f scial, ecnmic and envirnmental cnsideratins, Gvernance, and Stakehlder engagement. Page 3 f 21

4 In an industry that des nt enjy a gd reputatin, stakehlder engagement activities and cllabratin thrughut the cal chain were given relatively lw pririty, cnsistent with an industry still develping its apprach t sustainable develpment. Page 4 f 21

5 Vlume 1 Cntents Intrductin... 2 Sectin 1: General Infrmatin... 2 Questin 1.1: Invlvement in the Cal Industry...2 Questin 1.2: Organisatinal Scpe...2 Questin 1.3: Reginal Fcus...2 Sectin 2: Sustainable Develpment Acceptance and Imprtance... 2 Questin 2.1 Imprtance f Sustainable Develpment Principles in Decisin Making...2 Questin 2.2: Changes in the Acceptance f Sustainable Develpment Principles ver the past three years...2 Questin 2.3: Extent f Acceptance f Sustainable Develpment Principles within the Organisatin...2 Questin 2.4: Ptential fr Cmmercial Advantage frm Applying Sustainable Develpment Principles...2 Sectin 3: Sustainable Develpment Pririties fr the Cal Industry... 2 Questin 3.1: Rating f suggested actins fr the cal industry...2 Cmments n the tp fur ranked actins...2 Table Sectin 4. Examples f Sustainable Develpment Initiatives... 2 Overall cmments...2 Cal Prducer Cmments...2 Electricity Generatr Cmments...2 Table 4.1 Cal Prducers...2 Table 4.2 Electricity Generatrs...2 Table 4.3 Other Cal Industry Activities and Grand Ttal...2 Page 5 f 21

6 Intrductin The CIAB cnsidered the rle f cal in sustainable develpment in 2000 and A CIAB psitin paper prepared fr the Wrld Summit n Sustainable Develpment in Jhannesburg, August 2002 summarised the findings f this wrk. 1 In 2002 the CIAB cnducted a survey f the psitins f its Members and their rganisatins activities relating t cal and sustainable develpment. The purpse was t ascertain the degree f practical expressin being given t sustainable develpment. This reprt has tw vlumes. Vlume 1 reprts, analyses and cmments n the respnses received. Vlume 2 presents the full text f descriptins f sustainable develpment activities prvided by Members rganisatins. Prcess A brief questinnaire was develped by CIAB assciates and circulated t all CIAB members in early June. CIAB assciates cnsidered interim results in Washingtn DC in early July 2002 befre further respnses were received and the final analysis cmpleted. The Questinnaire The questinnaire, which is included in Vlume 2 f this reprt, sught infrmatin in the fllwing areas: The nature f the respndent s rganisatin; The perceived imprtance and degree f acceptance f the principles f sustainable develpment within the Member s rganisatin; The Member s views n sustainable develpment pririties fr the cal industry and Examples f sustainable develpment activities. Respndents were infrmed that individual respnses wuld nt be identified the first three sectins. These results were reprted in aggregated frm, with sme selected cmments quted. Organisatins that elected t be named in their respnse t Sectin 4 have been identified. Twenty-nine CIAB Members cmpleted the survey: a 73% respnse rate. 1 Cal and Sustainable Develpment achieving balance in pririties July 2002 A psitin paper by the Cal Industry Advisry bard prepared fr the Wrld Summit n sustainable Develpment Jhannesburg, August Page 6 f 21

7 Sectin 1: General Infrmatin This sectin asked fr infrmatin abut the Member s rganisatin. Questin 1.1: Invlvement in the Cal Industry The primary activity f the respndents rganisatins is summarised belw. Cal prducers and electricity generatrs were equally represented and there were fur respnses frm rganisatins invlved in the cal industry in ther ways. 2 Cal Prductin Electricity Generatin Other Questin 1.2: Organisatinal Scpe Mst rganisatins perated in develped ecnmies r internatinally Eleven perated internatinally Three were dmestic rganisatins perating in a develping ecnmy Fifteen were dmestic rganisatin perating in develped ecnmies Multinatinal Develping Develped Questin 1.3: Reginal Fcus Eurpe was mentined mst frequently as the fcus f peratins, fllwed by multi-reginal fcus. 3 Multi-reginal Asia-Pacific Eurpe Nrth America Other Cnfirmatin and cnslidatin f rganisatins primary activities were undertaken t simplify analysis. 3 Cnfirmatin and cnslidatin f the reginal fcus f rganisatins was undertaken after the survey returns were received t simplify analysis. Page 7 f 21

8 Sectin 2: Sustainable Develpment Acceptance and Imprtance This sectin asked fr infrmatin abut the perceived imprtance and degree f acceptance f the principles f sustainable develpment within the Member s rganisatin. Questin 2.1 Imprtance f Sustainable Develpment Principles in Decisin Making Respnses cnfirmed that sustainable develpment was an imprtant element in decisinmaking, with 83% f respnses saying it was very imprtant and a further 14% cnsidering it smewhat imprtant. There were n bvius differences accrding t rganisatinal activity and reginal fcus. Nt at all Imprtant Smewhat Imprtant Very Imprtant Cmpany Type Prducers Generatrs 2 10 Other 0 4 Operatinal Develped scpe Develping 1 2 Reginal interest Multinatinal 2 9 Asia-Pacific 0 4 Eurpe Nth America 0 4 Other 1 1 Multi-reginal 2 6 Selected cmments by respndents fllw: We believe that ur lng-term success depends n achieving excellence in three distinct areas: envirnment, safety and return t sharehlders. Any cal cmpany that des nt earn and keep the public s trust will struggle t acquire new permits, attract high-quality emplyees, wrk successfully with the regulatry cmmunity, and achieve excellence in ther areas f perfrmance such as cst cntrl. The principles, if applied crrectly, are gd business practice and necessary t sustain the cal business and its acceptability by the public ver the lng term. Sustainable develpment is seen as an integral part f ur business apprach and as cntributing t the triple bttm line. As the wrld is mving tward a sustainable develpment sciety, a financial perfrmance f a cmpany is seen nly as part f the ttal assessment f that cmpany. It is imprtant that the three main aspects n sustainable sciety - financial, envirnment and sciety develpment - shuld be duly cnsidered when any cmpany takes decisins. The ntin f sustainability is central t gd and effective decisin making. It is imprtant because it addresses lng-term cncerns, fr example security f supply, demand expectatins, envirnmental and safety issues, and the recruitment and retentin f skilled persnnel. Such cncerns ultimately sustain businesses and need t be recnciled with shrt term decisins, in particular quick fixes that may nt prve acceptable r affrdable in the lng term. The principles f sustainable develpment have grwn in imprtance in the rganisatin, but many decisins are still made n the basis f reaching a slutin within the shrt t medium term. Page 8 f 21

9 It is widely understd by decisin makers that the utlk especially fr cal-based pwer generatin will be determined t a large extent by the amunt f attentin paid als t eclgical factrs and by the grwing cncern fr the envirnment in additin t ecnmic and scial cnsideratins. Cal s prspects in the pwer generatin sectr will depend enrmusly n the prgress made in develping technical slutins fr clean cal cmbustin whse ultimate bjective may well be the CO2-free cal-fired pwer statin. Identified as a key driver by Chairman and Bard, and being driven thrughut the rganizatin as a key respnse required t imprve the perfrmance f the sectr, and the cmpany within the sectr. Our SD prgram is part f rganizatin wide effrt, which is far reaching and cmprehensive. Sustainable Develpment is the idea that humans pursue fair and just prsperities amng all grups and generatins while vercming varius cnstraints, specifically envirnmental prblems, under a new ecnmic and scial system with the basis f resurce and energy cnservatin. As a member f the energy industry, actively pushes frward with business plicies aimed t materialize sustainable develpment. Decisin making is cncerned with survival, nt sustainability. New investment decisins n electricity generatin are based n price cmpetitiveness, limited impact n envirnment bearing in mind the restrictins resulting frm Kyt cmmitments. Questin 2.2: Changes in the Acceptance f Sustainable Develpment Principles ver the past three years Ninety percent f respndents said that acceptance f sustainable develpment principles was nw mre imprtant r much mre imprtant than three years ag. Significant differences depending n rganisatinal activity and reginal fcus were nt evident. Cmpany Type Operatinal scpe Reginal interest N change Mre imprtant nw Much mre imprtant nw Prducers Generatrs Other Develped Develping Multinatinal Asia-Pacific Eurpe Nth America Other Multi-reginal Selected cmments by respndents fllw: We have lng been cmmitted t the principles f sustainable develpment. Hwever, that cmmitment has deepened in the past three years, and the imprtance f embracing such principles in rder t achieve success has becme even mre apparent. The prfile f sustainable develpment has grwn significantly within the cmpany, assisted in particular by: a cmmitment t have new HSEC plicies and prcedures in place and encmpassing a much brader range f peratinal types and lcatins, in develped and develping cuntries, Page 9 f 21

10 the internatinal fcus n sustainable develpment issues underlined by the appraching wrld summit (WSSD) in Suth Africa, internatinal cmmitments t greenhuse gas emissins targets and changing cmmunity expectatins; the cmpany s cmmitment t, and active, participatin in the GMI and WCI; specific sustainable develpment challenges fr the cmpany s cal business such as the impact f HIV/AIDS n ur cal industry emplyees and their families and cmmunities in Suth Africa; injuries and fatalities in ur cal mining peratins that, despite imprvements, remain unacceptably high; grwing cncern abut the cntributin f CO2 emissins frm fssil fuel use t the risk f climate change. Such develpments have underlined the increasingly clse alignment f sustainable develpment gals with the cmpany s lng term business bjectives. The increasing ppularity f the sustainable develpment cntext has nt led t significant changes in ur peratins because the existing practices are already strngly aligned with sustainability. If anything, the ppularity f sustainable develpment has prvided cal mining with an pprtunity t demnstrate t lcal cmmunities and the general public the imprtance f carefully examining ne-sided envirnmental prpsals in terms f their ecnmic and scial impacts. In this regard, lcal cmmunities in cal mining regins have learned t ask and demand answers t questins abut ecnmic csts and scial (jb) impacts fr these prpsals. Lcal cmmunities have even made gvernments rescind prpsals that had unacceptable scial and ecnmic csts. Sustainable develpment has had imprtant influences n the public and their perceptins abut balance between envirnment, ecnmic and scial factrs and their willingness t actively intervene. The circumstances surrunding ur cmpany have been changed in many respects and we have been implementing activities emphasizing envirnmental initiatives. One f such initiatives is that we have decided t publish an annual Envirnment Reprt cncerning activities f ur grup cmpanies. The first Envirnment Reprt was issued in This is an evidence f acceptance f the imprtance f the sustainable develpment principles in ur cmpany. A frmal statement f plicy has been established. The principles have grwn in imprtance fr a number f externally driven reasns including the grwth in scially respnsible investment, new legislatin and gvernmental plicy, new standards fr businesses (ISO 14001, AA1000 etc), mre business-targeted activism, and greater expsure via the internet. All have driven the business t cnsider and develp its psitin in relatin t crprate respnsibility and sustainability. Questin 2.3: Extent f Acceptance f Sustainable Develpment Principles within the Organisatin Respnses indicated a wide acceptance f sustainable develpment principles, althugh ne that was greatest in senir management and abve, with lwer acceptance amngst ther emplyees. 4 4 Respndents nminated mre than ne categry, hence the ttal exceeded the number f respndents. Page 10 f 21

11 Cmpany Type Operatinal scpe Reginal interest Bard Senir Managers Operating persnnel All emplyees Prducers Generatrs Other Develped Develping Multinatinal Asia-Pacific Eurpe Nth America Other Multi-reginal Selected cmments fllw: They may nt call the principles SD; hwever, all emplyees are active in the ecnmic, scial and envirnmental aspects f ur business. There is acceptance f the principles f sustainable develpment at the highest level. This has filtered dwn thrughut the rganisatin, due t the implementatin f plicy, reprting and rganisatin wide cmmunicatin. Rather than principles, the practices cnsistent with sustainable develpment are widely accepted within ur rganizatin. We believe that sustainable develpment cncepts must be embraced at the tp f the rganizatin first. The use f ur Cde f Business Cnduct and ther gvernance principles ensures the cncepts are fllwed elsewhere in the Cmpany. Senir management accept the principles, althugh their applicatin is nt yet central t decisin making, which is still primarily driven by shrt-term cmmercial cnsideratins. Few emplyees are aware f what sustainable develpment means in principle r in practice unless they are directly invlved in meeting the cmpany s bligatins n sustainable develpment reprting. In reality, there is sme limited acceptance/awareness at all levels in the cmpany. There is a high awareness f envirnmental issues and the cmpany respnds psitively t these. In s far as envirnmental perfrmance measures are used by gvernment as indicatrs f sustainable develpment trends, there is an acceptance, but the wider principles f sustainable develpment are nt explicitly cnsidered r discussed. Questin 2.4: Ptential fr Cmmercial Advantage frm Applying Sustainable Develpment Principles Eighty six percent f respnses indicated that sme r much cmmercial advantage culd be gained by applying the principles f sustainable develpment. Only ne respndent saw n ptential fr cmmercial advantage. 5 The grup f rganisatins perating in the Asia-Pacific regin recrded the highest prprtin f much advantage respnses (75% f regin s ttal cmpared t the verall prprtin f 46%). All respnses indicating n r little cmmercial advantage were frm Eurpe, which recrded the lwest prprtin f much advantage (30%). 5 One respndent did nt ffer an pinin and ne respnded dn t knw. Page 11 f 21

12 Cmpany Type Operatinal scpe Reginal interest Cmmercial advantage NONE Little Sme Much Prducers Generatrs Other Develped Develping Multinatinal Asia-Pacific Eurpe Nth America Other Multi-reginal Selected cmments by respndents fllw: Only thse cmpanies wh demnstrate a cncern fr the envirnment, the cmmunities in which they perate and the safety and wellbeing f their emplyees will be able t survive and prsper ver the lng run. Incrprating sustainable develpment cnsideratins in peratinal and planning decisins is increasingly seen as essential t staying cmpetitive and creating lasting value within the cmpany. Early mver advantages are available t cmpanies that appreciate the significance f sustainable develpment and act and plan accrdingly. Cnversely, cmpanies that fail t anticipate the implicatins fr their future business envirnment risk falling behind and lsing cmpetitiveness and value. The grwing significance f ethical share funds is an indicatin f hw sustainable develpment is assuming increasing imprtance as a cmmercial bjective, and the interests f sharehlders and ther stakehlders are becming mre clsely aligned. We believe the adptin f principles f sustainable develpment may affect the cmpany financial perfrmance. Better results are achieved aviding ppsitin by lcal cmmunities, attracting stakehlder and sharehlders that are mst sensitive n ethical and envirnmental issues, increasing peratin efficiency. By the implementatin f sustainable develpment principles, risk is reduced, business and technical efficiency is imprved, market share gained and reputatin enhanced. Sustainability is nt an issue directly linked t cmmercial advantage. Sustainability fr Canadian cal mines is instead directly related t the regin where the mines are lcated. It invlves the peple wh are cnnected t the cal chain, the businesses wh depend ecnmically n the cal industry and the lcal envirnment where ptential effects wuld be experienced. Sustainable develpment prvides a means f reducing the business risk t sharehlders at perating cal mines. Mines need public spnsred apprvals t perate and can ften require public resurces (land and minerals). Sustainability is mre clsely linked t the cst structure f cal mines and lng-term cmpetitiveness in the marketplace rather than any particular cmmercial advantage. The envirnmental and scial dimensins f cal mining shuld nt be manipulated as sme kind f cmmercial marketing scheme. Sustainability addresses the ptential risks faced by cal mining due t public perceptins and miscnceptins within the jurisdictins gverning the mining activity. In this regard, sustainability may be mre a sharehlder issue than a marketplace issue. Prpsed slutins and utlines fr the implementatin f EU-wide emissin trading wuld result in unpredictable and unacceptably high risks. On the ther hand if the ther flexible elements (JI, CDM) can be used and EU-regulatins take int cnsideratin different climate Page 12 f 21

13 cnditins acrss the cntinent, sme advantage culd be gained. Als the usage f ther energy surces than cal (e.g. nuclear, gas, wind, renewables) might bring sme benefits. We believe that stable supply f cal based n ur cmpany s philsphy, custmers-firstprinciples, cntributes t sustainable develpment f bth ecnmies f a cal-prducing cuntry and ur cuntry, and that the scieties give credibility t such cntributin by such cmpany s perfrmance. Implementing envirnmental initiatives further enhance ur cmpany s credibility amng the sciety and as a result we will be placed in an advantaged psitin in ding businesses. Cmpetitive psitining ahead f regulatry plicy There are many strategic gains t be made, particularly in securing future business and keeping ahead f sme f ur clsest cmpetitrs. Applying the principles demnstrates that the cmpany is a respnsible frward-lking peratr and enhances the brand. There are als wider benefits, fr example in relatin t transparency: imprved stakehlder relatins and a strng reputatin and image (an increasingly imprtant factr in attracting and retaining the best persnnel). Part f ur apprach is t identify what is the business advantage, althugh the prime mtivatin at this stage is verwhelmingly the need fr the industry t address the emissins frm cal in rder t secure its place in the lnger-term energy mix. We already perate t the highest envirnmental standards. Sciety in general, demands practices cmpatible with the envirnment, s it is beneficial fr cmpany image t fllw them. On the ther hand, clients are nt ready t pay mre yet fr green electricity with lwer envirnmental impact. Page 13 f 21

14 Sectin 3: Sustainable Develpment Pririties fr the Cal Industry This sectin asked fr members views n twelve suggested sustainable develpment pririties fr rganisatins perating thrughut the cal chain such as mining, marketing, transprt, cnsumptin, waste management and by-prducts. Questin 3.1: Rating f suggested actins fr the cal industry The respnses indicated widespread supprt fr the majrity f the suggested actins within a cntext f prviding secure and lw cst energy supply. The suggested actin f Ding nthing differently was the lwest pririty verall and in each sub-categry by a large margin. The respnses are shwn in the table 3.1, listed in rder f decreasing average verall scre and analysed by the sub-categries f rganisatinal activity, peratinal scpe and reginal fcus. Cmments n the tp fur ranked actins The fur highest verall ranked actins had an average scre f mre than 4.3 ut f 5.0 and were cmmn t all but three f the ten sub-categries tp ranked actins. The fur tp ranked actins were: Take actins t reduce the envirnmental impacts f cal prductin and use. Prvide a secure surce f energy supply. Develp and use new technlgies that reduce the greenhuse gas and ther emissins frm cal prductin and use. Prvide lw cst energy. Nrth American respndents placed tw actins in their tp fur pririties that were nt rated as highly by any ther sub-categry f respndents. There were: Rank 2: Adpt and endrse sustainable develpment principles in rganisatins perating in the cal industry (verall rank f 6). Rank 3: Establish imprved ways fr engaging stakehlders (verall rank 10). Respndents perating in develping ecnmies ranked Adpt and endrse sustainable develpment principles in rganisatins perating in the cal industry as the furth pririty (verall rank f 6). Respndents perating in the Other reginal interest categry ranked third the actin Imprve the health and safety perfrmance f the cal industry (verall rank f 5). Ntable variatins within the respnses by sub-categries were as fllws. 6 Respndents frm the Asia Pacific regin ranked Imprve prduct stewardship thrughut the cal chain as seventh, whereas it ranked eleventh verall. Respndents frm Nrth America ranked Prvide a secure surce f energy supply as sixth, whereas it was ranked verall as secnd. Respndents frm the Other regin ranked Develp and use new technlgies that reduce greenhuse gas and ther emissins frm cal prductin and use eighth, whereas this actin was ranked third verall. Other pints f interest were as fllws: While 86% f respndents reprted that the principles f sustainable develpment were smewhat imprtant r very imprtant in decisin making in their 6 An arbitrary selectin criterin was used t select ntable differences in sub-categry scres. This was a difference in ranking f 4 r mre places (cmpared t the verall ranking) cmbined with a scre difference f mre than tw standard deviatins. Page 14 f 21

15 rganisatin (see Questin 2.1), the actin f Adpt and endrse sustainable develpment principles in rganisatins perating in the cal industry ranked sixth verall, behind mre specific actins. Nrth American respndents ranked this actin secnd, while respndents frm the Asia-Pacific regin ranked it tenth7. An industry that is critically regarded by many stakehlders, ranked Establish imprved ways fr engaging stakehlders tenth verall with a scre f 3.7 ut f 5.0. Nrth American respndents ranked it third while respndents frm Asia-Pacific ranked it eleventh. Sme cmments prvided by respndents fllw: It wuld be gd t prvide with the prduct, certificates that shw the applicatin f gd envirnmental practices n all the phases f prductin, transprtatin, strage, manipulatin etc. Sustainable develpment principles are needed t identify and pririties issues and guide actins. Reliable, lw cst energy frm cal has underpinned ecnmic develpment and high living standards in develped cuntries, thereby helping t liberate them frm the pursuit f basic needs and accrd scial and envirnmental issues the imprtance they deserve. Fr develping cuntries, affrdable energy is a prerequisite fr ecnmic and scial develpment and, therefre, fr alleviating pverty and raising cmmunity health standards. Emissins f pllutants and CO2 frm cal use are the mst imprtant envirnmental issues facing cal, and majr imprvements in these areas culd be achieved by transferring established develped-wrld cmbustin technlgies t develping cuntries where cal cnsumptin is frecast t grw strngly ver at least the next 20 years. The key sustainability issues fr cal - such as energy cst, emissins and technlgy transfer are influenced by factrs that range acrss the varius stages in the cal chain. Cmmunicatin/cllabratin amngst prducers, cnsumers, develpers/financiers and plant and equipment makers is essential fr understanding these issues and develping effective, crdinated respnses. Establishing an accurate understanding f the envirnmental impacts f cal use and alternative fuels/inputs based n impacts at every stage in the ttal prduct lifecycle rather than just the final act f cnsumptin/cmbustin - is essential fr balanced and effective energy plicy-making. The type f actins t reduce greenhuse gas emissins must als be linked t cuntry specific issues, fr example develping cuntries will taken actin thrugh the Clean Develpment Mechanism. Again ecnmic cnsideratins must play an imprtant rle. Transfer f technlgies must be needs driven and transfer can be suth/suth. Partnerships are critical fr leveraging f resurces and taking a hlistic apprach t prduct stewardship. Cal mines exist in a dynamic wrld that cnstantly changes. Cntinuus imprvement is a necessity, nt a luxury. Hwever, this is nt a justificatin fr radical change but acceptance f measured change. As the ld saying ges, practice what yu preach. In this regard, principles are imprtant t give directin, but practices are the fundamental building blcks t imprve sustainability. If this pint fcused n practices, it wuld deserve a 10. Security f supply is ne f the strengths f cal which needs t be cntinuusly reinfrced. It cntributes directly t bth the ecnmic and scial legs f sustainable develpment. Prviding lw cst energy als cntributes strngly t the ecnmic and scial legs f sustainable develpment. By this means, cal als cntributes indirectly t the 7 The verall scres fr actins ranked frm seventh t eleventh were tightly gruped within a range f 13% and may nt be significantly different. Page 15 f 21

16 envirnment by helping t keep energy affrdable which prvides the ecnmic strength t adpt high standards fr envirnmental prtectin. This pint states what shuld be bvius. Where there are knwn impacts, the cal industry shuld wrk diligently t reduce them and wrk tward eventual eliminatin if pssible. This activity must be guided by science and ecnmics t ensure that there are real benefits fr resurces used. Reducing emissins f all types as a cnsequence f deplyment f better technlgies remains a high pririty but such technlgies must demnstrate sustainability in terms f their ecnmic and scial implicatins. Technlgies which deliver multiple benefits including cst reductins and imprved prductivities must be the main pririty. The issue f technlgy transfer is cmplicated. The respnse t this pint is based n an assumptin that there are n real market barriers fr develping cuntry access t cmmercially available technlgies ther than thse impsed by dmestic regimes. The majr issue fr technlgy transfer wuld appear t be uptake rather than availability. As suggested by the CIAB s recent India reprt, gvernment interventin int the marketplace and gvernment wnership in key sectrs frms the largest barriers t technlgy transfer. The issues faced by varius sectrs within develping cuntries (including the cal industry) are typically nt unique; they have been faced and addressed in numerus develped cuntries, and the slutins are well-knwn and cmmercially available. This pint has been taken t mean interactin between different links in the cal chain helping each ther ut with prduct stewardship. This actin is lwer in pririty than thers because each link in the cal chain is prbably best psitined t deal with its specific issues. In sme instances, there may be pprtunities t share ideas r slutins. Fr example, cal mines can accmmdate ash dispsal fr mine-muth pwer plants. This actin is nce f high imprtance and refers t the value created by an rganizatin like the CIAB which links all parts f the cal chain. It is imprtant fr each part f the cal industry t understand and accmmdate the issues and pririties frm ther parts, and t seek jint slutins where feasible. Health and safety perfrmance are very individualized elements f the cal industry. Cllabratin n a lcal r reginal basis can prvide sme pprtunities fr imprvement but the greatest ptential lies within rganizatins t imprve thrugh better practices and imprved emplyee training, educatin and awareness. Many parts f the cal industry in many cuntries have strng health and safety perfrmances. Fr example, Frding implements an incentive prgram in all its cal peratins which includes safety perfrmance as a ne-third cmpnent t augment ther prgrams fr safety including emplyees wn sense f health and well being. Experience has shwn that when emplyees have multiple incentives t imprve perfrmance, they tend t d s efficiently. Engaging key stakehlders is a fundamentally imprtant actin fr imprving sustainable develpment in the cal industry, particularly thse related t the ecnmic and scial dimensins f cal. It is vital that stakehlders realize the imprtant value that the cal industry brings t them persnally, and fr their cmmunities. It has been assumed that the term market mechanisms refers t taxes, tradable permits and ther instruments created by gvernment fiat. These are nt apprpriate vehicles fr sustainable develpment as they tend t prmte speculative behaviur and pit ne industry against anther in a game t seek gvernment favur. The gvernment shuld nt be placed in a psitin t pick and chse envirnmental perfrmance winners and lsers based n arbitrary r plitically mtivated criteria. We believe each cuntry must establish its wn sustainable develpment plicy. The general cncepts f sustainable develpment are applicable wrldwide; hwever, the specific curses f actin must be established n a cuntry-by-cuntry basis. Key stakehlders t be engaged are the users f the prduct, particularly pwer utilities. Mechanisms fr the imprving the cllabratin with utilities are nt apparent, and the trends in the market twards shrt term cntracts and spt transactins mitigate against the building f cllabrative partnerships t address prduct stewardship. Page 16 f 21

17 Table 3.1 Organisatin Activity Operatinal scpe Reginal interest Electricity Develped Develping Multinatinal Asia- Nrth Generatr Ecnmy Ecnmy Pacific Eurpe America Cal Prducer Other Regins Multireginal Q5. Reduce envirnmental impacts Q3. Prvide secure energy supply Q6. Develp new technlgies t reduce emissins Q4. Prvide lw cst energy Q10. Imprve health and safety perfrmance Q2. Adpt and Endrse SD principles Q7. Assist technlgy transfer t develping cuntries Q9. Imprve cllabratin and cmmunicatin in cal chain Q12. Establish market mechanisms t reward imprved envirnmental perfrmance Q11. Imprved stakehlder engagement Q8. Imprved prduct stewardship Q1. D nthing differently Overall Average Page 17 f 21

18 Sectin 4. Examples f Sustainable Develpment Initiatives The final sectin in the survey asked respndents t describe up t fur activities that their rganisatin has undertaken r is undertaking t imprve the sustainable develpment perfrmance f cal. Respndents were given the chice f having their rganisatin identified with their activities and abut half agreed t be named. A summary f the results, gruped under rganisatinal activity and nineteen generic sustainable develpment grupings is shwn in Tables 4.1, 4.2 and 4.3. This analysis recrds each mentin f generic activities in the individual respnses t Questin 4.3. The tables shuld be interpreted with the fllwing in mind: The amunt f detail in individual respnses varied greatly and this influenced the number f scres entered in the tables. A degree f judgement was necessary t grup the activities. Respndents were asked t reprt n nly fur main activities. While an rganisatin may have nt mentined an activity in its chsen list f fur, this shuld nt be interpreted that it is nt active in this way. Fr example many well-established activities that are relevant t sustainable develpment may nt have been nvel enugh t rate a mentin. Overall cmments The mst frequently mentined activity was air emissins reductin, fllwed clsely by research and develpment. The next frequently mentined activities were energy efficiency imprvement, public plicy advcacy, stakehlder prgrams and health safety and envirnment activities. There were very few mentins f emissins trading and CDM/JI activities. Mentins f integratin f the three pillars f sustainable develpment were few. Cal Prducer Cmments Research and develpment and air emissins reductins were again the mst frequently mentined. Incrprating sustainable develpment principles (althugh mstly frm ne respnse), public plicy advcacy, stakehlder prgrams, health safety and envirnment prgrams and land prgrams were next mst frequently mentined. Electricity Generatr Cmments By far the mst frequently mentined activity was air emissins reductin, fllwed research and develpment. Respnses frm rganisatins engaged in ther activities in the cal industry were mre brief and cntained fewer mentins f generic activities. The full text f the activities described in the respnses are presented in Vlume 2, gruped by rganisatinal activity and listed alphabetically. Page 18 f 21 Printed n 02-Dec-03 at 5:44 PM

19 Table 4.1 Cal Prducers Incrprating Educatin & Public SD principles Awareness Plicy PRODUCERS int business Prgrams Advcacy Stakehlder Prgrams Public Reprting Participatin in Gvernment HSE Initiatives Prgrams R&D Technlgy CDM/JI Transfer Activities Emissins Trading Sequestratin and strage Land Prgrams Efficient Cal Alternate Recvery Fuels Air emissins reductin Energy Efficiency Imprvement By-prduct utilisatin Scial and Cmmunity Prgrams Ttal Arch Cal Inc BHP Billitn Cnsl Energy Frding Cal Organisatin B Organisatin F Organisatin K Organisatin L Peabdy Energy RAG Ri Tint Energy RWE Rheinbraun UK Cal PLC Sub ttal Page 19 f 21

20 Table 4.2 Electricity Generatrs GENERATORS Incrprating SD principles int business Educatin & Awareness Prgrams Public Plicy Advcacy Stakehlder Prgrams Public Reprting Participatin in Gvernment Initiatives HSE Prgrams R&D Technlgy Transfer CDM/JI Activities Emissins Trading Sequestratin and strage Land Prgrams Efficient Cal Recvery Alternate Fuels Air emissins reductin Energy Efficiency Imprvement By-prduct utilisatin Scial and Cmmunity Prgrams Ttal Enel S.p.A Eskm KEPCO Electric Pwer Develpment C Helsinki Energy Bard Pwergen UK plc Organisatin I Organisatin J 0 Organisatin M An internatinal independent pwer cmpany Organisatin O TEPCO Sub ttal Page 20 f 21

21 OTHERS Nrflk Suthern Table 4.3 Other Cal Industry Activities and Grand Ttal Incrprating SD principles int business Educatin & Awareness Prgrams Public Plicy Advcacy Stakehlder Prgrams Public Reprting Participatin in Gvernment Initiatives HSE Prgrams R&D Technlgy Transfer CDM/JI Activities Emissins Trading Sequestratin and strage Land Prgrams Efficient Cal Recvery Alternate Fuels Air emissins reductin Energy Efficiency Imprvement By-prduct utilisatin Scial and Cmmunity Prgrams Ttal Organisatin A Organisatin C Organisatin H Sub ttal GRAND TOTAL Page 21 f 21