© 2011 deloitte global services limited united nations global compact management model signatory...

© 2011 Deloitte Global Services Limited

United Nations Global Compact Management Model

Signatory Training

© 2011 Deloitte Global Services Limited2

Agenda

Welcome & Introductions Deloitte Trainer/CR Staff30 sec Intro by Participants

2:05 – 2:25 pm

“Call to Action: UN Global Compact Background”

UNGC Representative 2:25 – 2:35 pm

UN Global Compact Management Model Deloitte Trainer 2:35– 3:45 pm

Communicating on Progress UNGC Representative 3:45 – 3:55 pm

Wrap-Up & Training Survey Deloitte Trainer 3:55 – 4:00 pm

Networking Reception Hosted by Deloitte 4:00 -5:00 pm


Call to Action:UN Global Compact


United Nations Global CompactOverview

The United Nations Global Compact is a voluntary international corporate citizenship network initiated to advance responsible corporate citizenship and universal social and environmental principles in the areas of human rights, labour standards, the environment and anti-corruption.

It is the world’s largest corporate citizenship and sustainability initiative with more than 8000 signatories and stakeholders from over 135 countries

The Global Compact is…The Global Compact is…

…a voluntary initiative to promote and advance responsible business. …a voluntary initiative to promote and advance responsible business.

…a universal value framework to help business get organized. …a universal value framework to help business get organized.

…a global network of like-minded businesses and other stakeholders. …a global network of like-minded businesses and other stakeholders.

…a platform for innovation. …a platform for innovation.

The Global Compact is not…The Global Compact is not…

…a regulatory body.…a regulatory body.

…a substitute for regulation at the national or international level. …a substitute for regulation at the national or international level.

…a PR exercise. …a PR exercise.


United Nations Global CompactExpectations of Signatories

Leadership Commitment (CEO and Board)Leadership Commitment (CEO and Board)

Commitment to transparency, accountability & public disclosureCommitment to transparency, accountability & public disclosure

Openness to dialogue and learning around critical issuesOpenness to dialogue and learning around critical issues

Willingness to engage in continuous performance improvementWillingness to engage in continuous performance improvement

Letter from Chief Executive to UN Secretary-General Ban Ki-moonLetter from Chief Executive to UN Secretary-General Ban Ki-moon

Setting strategic and operational goals, measuring results, communicating internally and externally

Setting strategic and operational goals, measuring results, communicating internally and externally

Participate in events at local (and global), engage in stakeholder dialogue

Participate in events at local (and global), engage in stakeholder dialogue

Annual Communication on Progress (COP)Annual Communication on Progress (COP)


United Nations Global Compact Adoption Challenges: The Importance of Management Processes

The Global Compact is a learning platform focused on diffusing best practices in the process or management systems that companies use to integrate the 10 principles.

1. Management systems are strong indicators of future performance. The strength of management systems in place will determine a company’s future ability to manage sustainability-associated risk and opportunities.

2. Best practices as benchmarks for performance. Management processes that are considered best practices can be used as benchmarks to evaluate sustainability performance and identify extra-financial opportunities and risks.


United Nations Global CompactManagement Model and Training Objectives

• Improve adoption of the UNGC Management Model amongst signatories

• Improve performance of UNGC signatories against the ten principles

Training Objectives

• Help companies through the process of implementing the UN Global Compact Principles

• Improve the UN Global Compact’s ability to equip companies to address sustainability and generate positive impacts for shareholders and other stakeholders.

UNGC Management Model Objectives


UN Global Compact Management Model


UN Global Compact Management ModelOverview

9

Each step of the Management Model has one or more suggested activities and areas of focus. Recommendations for each step are defined and described in detail. In addition, ideas both for how to get started and examples of what leadership practices look like are provided for each step.


ASSESS

COMMIT

MEASURE

IMPLEMENT

Definegoals, strategies,

and policies

DEFINE

Communicate progress and strategies and engage with stakeholders for continuous improvement

COMMUNICATE

Leadership commitment to mainstream the Global Compact principles into strategies and operations and to take action in support of broader UN goals, in a transparent way

Assess risks, opportunities, and impacts across Global Compact issue areas

Measure and monitor impacts and progress toward goals

Implement strategies and policies through the company and across the company’s value chain

UN Global Compact Management ModelStep 1 – Commit

10

Company leadership publicly signals its commitment to stakeholders. Specifically, leadership commits to supporting the Global Compact and making the ten principles part of the strategy, culture and day-to-day operations of the company, with oversight provided by transparent governance structures.

COMMIT

Leadership Commits to:

• Global Compact and its ten principles

• Engaging in partnerships to advance broad UN Goals

• Annual submission of the Communication on Progress (COP)

Take Action


Getting Started

• CEO and Board (if applicable) sign the UN Global Compact Letter of Commitment

• Leadership commits to adhering to the ten principles, submitting a Communication on Progress (COP) annually, and taking action in broader UN goals

• Leadership plans to put resources aside to carry out commitment

Leadership Practices

• Leadership team commits to adopting and promoting sustainability within its industry and communities

• Company promotes its commitment by communicating it to shareholders and other stakeholders

UN Global Compact Management ModelStep 1 – Commit

11

• How did your company get started?

• What are some leading practices you have seen?

Reflection

ASSESS

COMMIT

MEASURE

IMPLEMENT


and policies

DEFINE


COMMUNICATE






UN Global Compact Management ModelStep 2 - Assess

12

The company assesses its risks and opportunities on an ongoing basis—in financial and extra-financial terms—as well as the impact of its operations on the issue areas, in order to develop and refine its goals, strategies, and policies.

ASSESS

ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies



• Assess Risks

• Forecast Opportunities

• Calculate Impact

Take Action


Getting Started

• Company makes sure it understands the ten principles and reviews appropriate issue area information and tools

• Considers owned operations at a high level to see if it is in alignment with the principles

• Prioritizes risks and opportunities to address


• Prioritizes risks, proactively identifies opportunities, and calculates impacts at both the enterprise and product level regularly across issue areas

• Forecasts future operating context scenarios, based on review of data and trends

• Engages stakeholders in assessments and shares best practices with business partners

UN Global Compact Management ModelStep 2 – Assess

13

• How did your company assess risks and opportunities?

• What are some leading practices for measuring your company’s impact?

Reflection

ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies




UN Global Compact Management ModelStep 3 – Define

14

Based on its assessment of risks, opportunities and impacts, the company develops and refines goals and metrics specific to its operating context to meet its goals, and creates a roadmap to carry out its program.

DEFINE

Communicate progress and strategies to engage with stakeholders for continuous improvement

ASSESS

COMMIT

MEASURE

IMPLEMENT


and policies

DEFINE


COMMUNICATE





• Establish Clear Goals

• Develop Strategy

• Refine Policies

Take Action


Getting Started

• Starts by prioritizing high-level and achievable goals to address top risks, impacts, and opportunities identified in the Assess step

• Sets high-level strategy and action plan to achieve goals


• Integrates sustainability into corporate strategy planning process

• Develops strategy in consultation with stakeholders

• Develops roadmap of actions and investments to improve sustainability performance

• Encourages or requires suppliers and business partners to operate in ways consistent with the ten principles

UN Global Compact Management ModelStep 3 – Define

15

• How has your company aligned business strategy against the ten principles?

• How did your company establish specific and measurable goals?

Reflection


ASSESS

COMMIT

MEASURE

IMPLEMENT


and policies

DEFINE


COMMUNICATE






The company establishes and ensures ongoing adjustments to core processes, engages and educates employees, builds capacity and resources, and works with supply chain partners to address and implement its strategy.

IMPLEMENT

UN Global Compact Management ModelStep 4 – Implement

16


ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies



• Adjust Core Processes

• Engage and Empower Employees

• Leverage Information Technology (IT)

• Suppliers and Business Partners

Take Action


Getting Started

• Adjusts relevant processes and educates employees on the actions and behaviors that will help the company achieve its goals


• Adjusts core processes to align with Global Compact principles and drive value for shareholders, stakeholders, and society

• Equips and empowers subsidiaries, value chain partners to carry out its sustainability strategies

• “Sustainability mindset,” is adopted throughout the organization

UN Global Compact Management ModelStep 4 – Implement

17

• How does your company engage business partners in support of sustainability objectives?

• How does your company engage employees to drive implementation of the ten principles?

Reflection


ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies




The organization adjusts its performance management systems to capture, analyze, and monitor the performance metrics established in the Define step. Progress is monitored against goals and adjustments are made to improve performance.

MEASURE


ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies



UN Global Compact Management ModelStep 5 – Measure

18

• Measure and Monitor – Develop ability to measure, monitor, and interpret impacts and progress towards goals (e.g., calculate performance of each operational facility)

Take Action


Getting Started

• Starts to measure and monitor corporate sustainability metrics set up in the Assess and Define steps

• Collects all available data, noting source of data and data it does not yet have; data will be refined and expanded over time to extract insights that will enable the company to continuously improve


• Implements system to measure and report performance towards achieving goals

• Makes performance broadly visible, regularly uses performance data to guide decisions and investments, and seek to translate sustainability impact to financial impact

• Works within industry and government to develop industry standards for impact metrics

UN Global Compact Management ModelStep 5 – Measure

19


ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies



• How did your company identify the key metrics to measure on?

• What IT solution does your company to track performance?

Reflection


The company communicates its progress and forward-looking strategies for implementing its commitment by developing a Communication on Progress (COP), and engages with stakeholders to identify ways to continuously improve performance.

COMMUNICATE

ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies



UN Global Compact Management ModelStep 6 – Communicate

20

• Communication on Progress

• Stakeholder Dialogue for Continuous Improvement

Take Action


Getting Started

• Documents progress toward completing action plan in its COP

• Reconfirms commitment to the Global Compact


• Documents sustainability goals, strategies, and performance into annual financial report and supporting documentation

• Receives Board approval and third party verification of COP

• Engages stakeholders to capture feedback to improve sustainability performance and promote alignment with current and emerging regulations and trends

UN Global Compact Management ModelStep 6 – Communicate

21

• How does your company communicate on progress?

• How does your company engage stakeholders to capture feedback on sustainability progress?

Reflection

ASSESS

COMMIT

MEASURE

IMPLEMENT

DEFINE


COMMUNICATE




and policies




Communication on Progress


Communication on ProgressOverview

The COP is a tool for transparency and disclosure on the internal management steps companies have taken to implement the principles.

It is required every year from every business participant.

The COP has no prescribed format so long it is broadly communicated with stakeholders and includes:

• A statement of continued support by the chief executive

• A description of practical actions addressing all four issue areas

• A measurement of outcomes.


Communication on ProgressDifferentiation

In order to promote continued progress, the Global Compact will start categorizing companies at different levels of performance and disclosure

Source: United Nations Global Compact


Concluding Thoughts


Available Tools and Resources


Deloitte Sustainability Management ModelDiagnostic Tool

Sustainability Management Model Diagnostic

Diagnostic – Scoring & Feedback Results

Diagnostic – Assessment Framework

The diagnostic tool, based on the UN Global Compact Management Model, that is designed to help organizations assess their sustainability maturity

Source: Deloitte Consulting LLP


For More InformationKey Contacts

For questions about the UN Global Compact Management Model, contact:David LinichSenior Manager, SustainabilityDeloitte Consulting LLP Email: [email protected]

For questions about Global CR or the purpose of this effort, contact:Julie EngerranDirector, Corporate ResponsibilityDeloitte Touche Tohmatsu LimitedEmail: [email protected]

To download a copy of the UN Global Compact Management Model:UN Global Compact Management Model PDF

To learn about Deloitte’s partnership with the United Nations Global Compact:www.deloitte.com/globalcompact

mailto:[email protected]

mailto:[email protected]

http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2010_06_17/UN_Global_Compact_Management_Model.pdf

http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2010_06_17/UN_Global_Compact_Management_Model.pdf

http://www.deloitte.com/globalcompact


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