Corporate Social Responsibility and what it means for your company
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1 ECOVADIS PUBLIC Corporate Social Responsibility and what it means for your company AIM-Progress Supplier Day Dubai 23 March 2017 Boris Abramovic Supplier Engagement Executive
2 Agenda Going beyond regulatory compliance Implementing a CSR Management System How EcoVadis can help your company ECOVADIS PUBLIC 2
3 CSR What is Corporate Social Responsibility? ECOVADIS PUBLIC 3
4 Regulation & going beyond compliance LEGAL VOLUNTARY DOUBLE OBJECTIVE REACTIVE PROACTIVE International Standards Objective: Create business value REGULATIONS & LAWS Local Laws CSR Management System Results Policies Actions Go beyond legal requirements Reduction in Energy Consumption CO2/GHG Emissions Monitoring Safety incidents... Objetive: Avoid legal issues Meet legal requirements Pollution Bribery Discrimination ECOVADIS PUBLIC 4
5 Creating business value from PERFORMANCE Value Creation Performance Mgmt CSR ratings & scorecards Conventionnal Self Assessment Questionnaire Site Audit «Compliance» Risk Mgmt Depth / Resources required ECOVADIS PUBLIC 5
6 Company purchasing practices are changing A KEY CRITERIA FOR YOUR CUSTOMERS BENEFITS FOR YOUR CUSTOMERS Price Quality On-time delivery Sustainability Risk Management Protect the brand Supply Chain Disruption Cost Reduction Improve Total Cost of Ownership Reduce waste Reduce consumption Innovation Product differenciation Access to new markets ECOVADIS PUBLIC 6
7 Benefits of implementing CSR for YOUR company Customers Attract customers Retain customers Protect reputation & brand Competitiveness Competitive advantage Operational stability Costs Reduce costs Reduce energy use Reduce waste Increase productivity Reduce absenteeism Compliance Get ahead of regulations Counter social pressure ECOVADIS PUBLIC 7
8 Increasing adoption of sustainability standards... ECOVADIS PUBLIC 8
9 International Sustainability Standards ECOVADIS PUBLIC 9
10 Initiatives in Middle East ECOVADIS PUBLIC 10
11 Agenda Going beyond regulatory compliance Implementing a CSR Management System How EcoVadis can help your company ECOVADIS PUBLIC 11
12 What is a Management System? A management system is a framework of processes and procedures used to ensure that an organization fulfills all tasks required to achieve its objectives. PROCESS OBJECTIVE PROCEDURE ECOVADIS PUBLIC 12
13 What is a Management System? About Management Systems A few examples of international standards setting the requirements for management systems are: Quality Management System (e.g. ISO 9001) Environmental Management System (e.g. ISO 14001) Health and Safety Management System (e.g. OHSAS 18001) ECOVADIS PUBLIC 13
14 Focus on Continuous Improvement About Management Systems An effective management system allows companies to improve performance through a process of continuous improvement. Improvement Improvement directly supports efficient resource use business continuity risk reduction streamlined productivity ECOVADIS PUBLIC 14
15 What is a CSR management system? The management system should be based on sustainability issues that are relevant to the sector A management system requires the adoption of indicators. Policies Actions Results Policies Endorsement of voluntary CSR initiatives Measures/actions Level of implementation Certificates/product seals Results/KPIs 360 ECOVADIS PUBLIC 15
16 What are Corporate Social Responsibility topics? 1. ENVIRONMENT Energy consumption & GHG Water Biodiversity Local & accidental pollution Product use Product end of Life Customer health & safety Sustainabl consumption 2. SOCIAL Employee health & safety Workiing conditions Social dialogue Career management & training Child & forced labor Fundamental human rights Diversity & anti-harassment 3. ETHICS Bribery & corruption Anti-competitive practices Responsible Information Management 4. SUSTAINABLE PROCUREMENT Sustainable Procurement- Environment Sustainable Procurement-Social When is Migrant and Forced Labor a key criteria? When the sector has low skilled work, high use of temporary labor ECOVADIS PUBLIC 16
17 LABOR & HUMAN RIGHTS Sector Focus : Child & Forced Labor Transport & Logistics High level of risk exposure due to: Exposure to trafficked individuals Operations generally outside of regulatory oversight (e.g. international waters, country-country) Weak legal systems &/or inadequate customs/port procedures Manufacturing plastics High level of risk exposure due to: Low-skilled work associated with manufacturing Exposure to displaced workers Weak legal systems &/or enforcement in key manufacturing hubs Policies Actions Results Policies Actions Results Policies showing commitment to prevent child, forced and trafficked labor Customer due diligence ( know your customer ) Freight due diligence ( know what you are carrying ) Slavery prevention trainingspecific to trafficking of persons NGO engagement Whistleblower procedure to enable access to remedy Risk assessments to identify operations exposed to displaced workers Slavery prevention training Whistleblower procedure to enable access to remedy NGO engagement (develop risk assessment, work on remedies social supports locally) ECOVADIS PUBLIC 17
18 SUSTAINABLE PROCUREMENT Sector Focus : Child & Forced Labor Marketing & Design Low level of risk exposure due to skilled nature of work: Less exposure to migrant/displaced workers Skilled workers are aware of labor standards and laws Risk exposure is in the supply chain Souring of office/it equipment manufactured with slave labor Labor trafficking and abusive recruitment practices Policies Actions Results Policies to source responsible products and from sustainable suppliers Develop supplier code of conduct with provision prohibiting child & forced labor, excessive hours and recruitment fees Questionnaire assessments On-site social audits Training of buyers in anti-slavery and sustainability ECOVADIS PUBLIC 18
19 Agenda Going beyond regulatory compliance Implementing a CSR Management System How EcoVadis can help your company ECOVADIS PUBLIC 19
20 A complex challenge Buyer s CO2 footprints Suppliers Time-consuming No reliable indicators Not scalable Duplicate efforts No standards Little feedback ECOVADIS PUBLIC 20
21 EcoVadis Solution Buyers Suppliers ECOVADIS PUBLIC 21
22 Evaluation process customized to your company operations Registrer Online Data Collection Respond to the questionnaire and provide supporting documents Expert Analysis EcoVadis analyzes and transforms your answers into an easy-to-read Scorecard Results Online access to your scorecard and improvement areas Will help to adapt the questionnaire to your company size, sector and location f operations. Secure, confidential Document audit by a thirdparty with CSR experts Review results, share with multiple clients, work towards improvements Supplier Engagement Help Center EcoVadis provides multi-lingual support to you thoughout the entire process. ECOVADIS PUBLIC 22
23 In order to rate your CSR performance, EcoVadis needs evidence to demonstrate your company s practices. You can upload any type of document that can reflect your company s commitment to CSR: Any type of supporting documents: written policies, reports, action plans, certificates, etc. All formats accepted: text, PDFs, web links, images, etc. Examples of documents collected * ISO Certificate Eco-label certification CSR report QHSE Charter RoHS Declaration for ML600G Internal Safety inspection report Business code of conduct Environmental impact assessment Health & Safety plan Quality Manual Accident Incident Rate Scorecard Supplier Audit Report (Factory X) REACH Declaration Employee Handbook 200X ECOVADIS PUBLIC 23
24 Scorecard Results CSR Performance Rating by theme of your CSR performance, (Environment, Social, Ethics, Suppliers) on a scoring scale out of 100 Benchmark* Allows you to compare your performance with other companies in your industry sector Strengths & Improvement Areas Detailed presentation of your strong CSR practices and your improvement areas. They are divided into 4 categories that are the four themes used in the CSR rating (environment, social, suppliers and ethics) 360 Watch* Keep an eye on information from up to 800 stakeholders (NGOs, Trade unions ) concerning your company + Corrective Action Plan ECOVADIS PUBLIC 24
25 CSR Assessment Results & Benefits Understand Get a clear picture of your CSR performance With a score out of 100 for four CSR themes (environment, social, ethics, suppliers) Improve Prioritize actions with a scorecard that highlights main improvement points Access a Benchmark to visualize performance compared to competitors Secure Platform Manage improvement plans directly online Share them with clients and get feedback Client A Client B Update Embrace a continuous improvement process With a yearly re-evaluation of your CSR performance Access up-to-date information on your CSR performance Communicate Client C Meet clients needs More and more companies raise questions about their supplier s environmental and social performance Use a unique communication tool Share evaluation results with all clients directly online ECOVADIS PUBLIC 25
26 ECOVADIS PUBLIC THANK YOU Additional Questions Supplier Engagement Support
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