1UNGC Module 4 – Session 1

THE UN GLOBAL COMPACT

MODULE 4 FROM PRINCIPLE TO PRACTICE

Session 1: Steps to Sustainability usingthe Global Compact Performance Model

2UNGC Module 4 – Session 1

To participate in the Global Compact a company typically:– Sends a letter to the UN Secretary General

– Publicly advocates the Global Compact

– Posts material on the Global Compact website

– Publishes an annual report

– Joins with the UN in partnership projects

– Sets in motion changes to its business operations

The final point above is the most important, and is the focus of the rest of this session: moving from principle to practice

Note: Updated details on the requirements for participating in the Global Compact are available from the Global Compact website

From Principle to Practice:The GC Performance Model

3UNGC Module 4 – Session 1

From Principle to PracticeThe Deming Cycle

Plan strategy“Vision”

Implement“Enablers”

Check progress“Results”

Set goals“Reporting”

Note: the text in italics refers to the corresponding section of the

UNGC performance model introduced in the next slide

4UNGC Module 4 – Session 1

From Principle to Practice: The GC Performance Model Four management elements

1) VISION

2) ENABLERS

3) RESULTS

4) REPORTING

5UNGC Module 4 – Session 1

GETTING THERE

- Review the three GC environmental principles

- Analyse global economic, social and environmental trends

- Factor 4/Factor 10 and Eco-Efficiency studies

- SIGMA Management Framework- Wuppertal Institute’s Compass - Select Environmental Management Strategy (Module 4-2)

- Refer to UNEP Cleaner Production Declaration

- Employee and stakeholder dialogue

- Scenario planning

From Principle to Practice: The GC Performance Model

Case studies:- RMC Group – used the SIGMA Management Framework (www.rmc-group.com)- European Aluminium Industry – used Compass to detect and facilitate sector-wide sustainability improvements (www.oekoeffizienz.de/english/content/agzu/index.html

Codes and standards

Management tools

Communication and Partnership

6UNGC Module 4 – Session 1

From Principle to Practice: The GC Performance Model Enablers (1)

GETTING THERE

- Translate principles into practical language

- Draw on the examples contained in the GC Learning Forum

- Consider the work contained in the WRI’s “Tomorrow’s Markets”

- Form top management committee- Hold listening and dialogue sessions- Implement environmental management system (Module 4-2)

- Apply Business Case Matrix

- Apply Corporate Responsibility Assessment Tool

Case studies:Natura, Brazil – developing a business case (www.sustainability.com)Unilever – demonstrating role of leadership competence in meeting sustainability targets (www.unilever.com/environmentsociety)

Codes and standards

Management tools

Communication and partnership

7UNGC Module 4 – Session 1

GETTING THERE

- In-house learning sessions- Draw on examples from GC Learning Forum- Experiential learning- Engagement in community work- Environmental training - Internal communication- Environmental performance indicators (Module 4-2)

- Environmental training and communication (Module 4-2)- Chronos e-learning tutorial - EMS training resource kit - Environmental Management Navigator package for SMEs

Case studiesNo 4-4 Du Pont No 4-5 Bovince Ltd

From Principle to Practice: The GC Performance Model Enablers (2)

Codes and standards

Management tools

8UNGC Module 4 – Session 1

GETTING THERE

-Use International Declaration on Cleaner Production-Refer to the Corporate Social Responsibility: A Guide to Better Business Practices, BSR -Refer to the Corporate Responsibility Code Book

- Environmental assessment & auditing tools (Module 4-2)- Select environmental management strategy (Module 4-2)- Life Cycle Management (Module 4-2)- Resource flow audits- Environmental reviews

- Partnerships: scientific groups, academia, NGOs, suppliers, etc- Make use of communication tools (Module 4-2)

Case studiesNo 4-4: Du Pont No 4-5: Bovince Ltd

From Principle to Practice: The GC Performance Model Enablers (3)

Codes and standards

Management tools

Communication and partnership

9UNGC Module 4 – Session 1

GETTING THERE

Refer to:- Integrated Environmental and Economic Accounting: An Operational Manual, - Contemporary Environmental Accounting: Issues, Concepts and Practices

- Test budgets against policies/action plans- Assign responsibilities to executive management as part of environmental management system (Module 4-2)- Use environmental assessment tools (Module 4-2)

- Use the SIGMA projects accounting tool- Use the CARE tool - Undertake risk and opportunity assessment

Case studiesWessex Water Services Ltd. – used the Sigma Project Accounting Tool to develop its sustainability accounts (www.wessexwater.co.uk)Muckenhaupt & Nusselt – participated in the CARE project in order to develop an EMS (www.munu-kabel.de)

From Principle to Practice: The GC Performance Model Enablers (4)

Codes and standards

Management tools

Communication and partnership

10UNGC Module 4 – Session 1

GETTING THERE

- ISO 14000 EMS (see Module 4-2)

- SAFE: Sustainability Assessment for Small and Medium- sized Enterprises

- Cleaner Production assessment (Module 4-2)

- Product stewardship activities

- Environmental Impact Assessment (Module 4-2)

- Environmental Risk Assessment (Module 4-2)

- Life-Cycle Assessment (Module 4-2)

- Design for Environment & Eco-design

- Environmental auditing (Module 4-2)

- Sustainable Production & Consumption

- Product-services systems

Case studiesToyota-Global (no. 3-11); Re-Define (no. 3-15); Nokia (no. 3-13) - product life-cycle analysisMoroccan dyeing industry – eco-efficiency analysis for each product’s life cycle www.unido.org/userfiles/timminsk/ecoefficiency_Morocco_aug2002.pdf

From Principle to Practice: The GC Performance Model Enablers (5)

Management tools

11UNGC Module 4 – Session 1

GETTING THERE

- Sector wide codes of practices

- Environmental monitoring and auditing tools (Module 4-2)- Environmental management tools (Module 4-2)- Product life cycle stewardship- Supply chain management standards- Product labelling – e.g. Eco-labels

- Environmental communication tools (Module 4-2)- Form stakeholder advisory committee

Case studies:British Telecom – CSR and customer satisfaction www.bt.com/betterworld

From Principle to Practice: The GC Performance Model Results (1)

Codes and standards

Management tools

Communication and partnership

12UNGC Module 4 – Session 1

GETTING THERE

- Internal training and communication e.g. through a structured EMS (Module 4-2)

- Employee surveys

- Employee reward schemes for meeting environmental performance targets

From Principle to Practice: The GC Performance Model Results (2)

Communication and partnership

13UNGC Module 4 – Session 1

GETTING THERE

- Internal training and communication (Module 4-2)

- Site community opinion surveys

- Local and corporate advisory panels

- Product Stewardship

- Extended Producer Responsibility

- Sustainable Production & Consumption

- Environmental management tools (Module 4-2)

- ETHOS Indicators - UNEP APPEL (Module 4-2)- GRI Sustainability Reporting Guidelines

Case studiesPetrobras, Brazil – implementation of APPEL www.petrobras.com.br

From Principle to Practice: The GC Performance Model Results (3)

Management tools

Communication and partnership

14UNGC Module 4 – Session 1

GETTING THERE

- Manual on eco-efficiency indicators

- Environmental reporting tools (Module 4-2)

- GRI Sustainability Reporting Guidelines

- Accountability 1000 (AA1000) Framework

- The Efficient Entrepreneur Calendar

Case studiesVancity – use of AccountAbility 1000 (AA1000) Framework www.vancity.com

From Principle to Practice: The GC Performance Model Reporting

Codes and standards

Management tools

15UNGC Module 4 – Session 1

The Global Compact’s engagement opportunities:

- Policy dialogue

- Learning

- Local Networks

- Partnership Projects

From Principle to Practice:The GC Performance Model

16UNGC Module 4 – Session 1

The Global Compact’s Learning Forum:

- Examples of corporate experiences in implementing the ten principles of the Global Compact

- Case studies of corporate experiences

- Description of partnership projects

- Research matching database

- Learning Forum publications

- Tools development

From Principle to Practice:The GC Performance Model

17UNGC Module 4 – Session 1

The UN Global Compact Learning Forumwww.unglobalcompact.org