integrating sustainability: putting every unit to work
TRANSCRIPT
Integrating sustainability: putting
every unit to workCSR Asia
Hong Kong – September 2016
1
What does sustainability mean to you?
2
Growing demand is putting an increasing
strain on our planet
3
SUPPLY DEMAND
1976 2010
Annual
regenerative
capacity
of the planet
Human beings now
demand more from
the Earth than can be
regenerated
Earth’s
resources
Consumption of Earth’s resources
+
Source: Accenture
Expectations for sustainable business are
increasing
Consumer awareness is rising
Global regulations are evolving
NGOs are launching global
campaigns
Social media is eliminating the
distance between people and
ideas
Taken together, these trends are
ushering in a new era of radical
transparency
4
Global regulations are redefining the business
landscape
Comprehensive regulations
Registration, Evaluation, Authorization
and Restriction of Chemical (European
Union)
Provisions on Environmental
Administration of New Chemical
Substances (China)
Chemical Safety Improvement Act
(United States)
Act on the Registration and Evaluation
of Chemicals (Korea)
Hazard Substances Notification
(Thailand)
5
International regulations affect Asian business
Consumers expect sustainability to be part of
business-as-usual
In Asia:
91% of consumers surveyed
are willing to switch to a brand
associated with a good cause
87% consider a firm’s CSR
when deciding products
55% have already boycotted
products because of the
producer’s irresponsible
behaviors
43% have paid more for
socially responsible products
6
Sources:
2013 Cone Communications/ Echo Global CSR Opportunity Study
& Neilson global corporate responsibility survey
NGOs are spurring companies to address
sustainability in supply chains
In 2016:
Rainforest Action Network vs. Abercrombie & Fitch (viscose production in rainforests)
Greenpeace vs. Mars (unsustainable seafood in pet feed)
Human Rights Watch vs. tobacco companies (child labor at Indonesian farms)
Amnesty International vs. Huayou(child labor in cobalt mining)
International campaigns affect Asian businesses
7
Now what?
Food for thought …
Should certain industries be more concerned about sustainability than
others?
Which business functions are most important when it comes to
sustainability?
How should the sustainability manager address these questions?
8
BASF’s journey
From making chemicals to creating chemistry
9
BASF – We create chemistry
Our chemistry is used in almost all
industries
We combine economic success, social
responsibility and environmental
protection
Sales 2015: €70,449 million
EBIT 2015: €6,248 million
Employees (as of December 31,
2015): 112,435
6 Verbund sites and 338 other
production sites
10
Chemistry as enabler
Setting the stage for the future
Meeting societal demands within the limits of the planet
Nine billion people in 2050 but only one earth
11
Resources, Environment &
Climate
Food & Nutrition Quality of Life
Putting chemistry to work to meet societal
needs
12
… more food needed
by 2050… more primary energy
consumption by 2050
… of the world population
will live in cities by 2050
Agriculture Health & nutrition
Energy & resources
Transportation Construction & housing
Consumer goods
… people by 2050
70% 50%~10bn
Electrical & electronics
30%
Chemistry as enabler for current and future needs
Rising stakeholder expectations
13
Our sustainability understanding
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We create chemistry
for a sustainable future
Sustainable development is about balancing economic, environmental and
social needs – today and tomorrow
Sustainable Development
Environment Social Responsibility
Economy
Evolution of societal expectations
15
Importance for stakeholder
very highhigh extremely high
extremely high
very high
high
Importance for BASF
Establish materiality
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Distill key material issues
17
Energy & Climate
Resources & Ecosystems
Food
Partnering
Water
Operational Excellence
Products & Solutions
Employment & Employability
Make sustainability commitments throughout
the business
18
Material
aspects
We
drive sustainable
solutions
CustomerBASFSuppliers
We produce safely
for people and
the environment
We
source
responsibly
We produce
efficiently
We respect people
and treat them fairly
Make sustainability commitments throughout
the business
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Material
aspects
We
drive sustainable
solutions
CustomerBASFSuppliers
We produce safely
for people and
the environment
We produce
efficiently
We
source
responsibly
We respect people
and treat them fairly
Make sustainability commitments throughout
the business
20
Material
aspects
We
drive sustainable
solutions
CustomerBASFSuppliers
We produce safely
for people and
the environment
We
source
responsibly
We respect people
and treat them fairly
We produce
efficiently
Make sustainability commitments throughout
the business
21
Material
aspects
We
drive sustainable
solutions
CustomerBASFSuppliers
We produce safely
for people and
the environment
We
source
responsibly
We respect people
and treat them fairly
We produce
efficiently
Put sustainability in each unit
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Strategy Process
Sustainability
integrated in our
business strategiesSustainability Analysis SD measures &
milestones defined
Sustainability
anchored in our
organization Stakeholder Advisory Council
Chair: Kurt Bock
Corporate Sustainability Board
Chair: Margret Suckale
Chair: Dirk Voeste
Sustainability Core Team
Operating divisions
Regions
Functional units
Central functions
Sustainability Communities
Board of Executive Directors of BASF SE
Roll out through networks
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Training
Events
Internal example sharing
Customer collaboration
Break Out
Each function’s contribution to sustainability
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Production
Sales & Marketing
Procurement
Logistic, Supply Chain
Finance & Controlling
Legal & Regulatory
Human Resources
Communications
IT
Engineering
Research & Development
EHS
Customer service
Resources &
EcosystemsWater
Operational
Excellence
Products &
Solutions
Energy &
ClimateEmployment Partnering Food
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
… … … … … … … …
Example: Role of Procurement
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Material
AspectRole
Potential
KPI
Energy &
Climate
…
...
Employment /
society
…
…
Profitability
…
What are the aspects relevant to your company? (add
more if relevant)
Example: Role of Procurement
27
Material
AspectRole
Potential
KPI
Energy &
Climate
…
...
Employment /
society
…
…
Profitability
…
What role does this
function have to play?
Example: Role of Procurement
28INTERN
Material
AspectRole
Potential
KPI
Energy &
Climate
…
...
Employment /
society
…
…
Profitability
…
What metrics could be
used to track progress?
GH
Example: Role of HR
29
Material
AspectRole
Potential
KPI
Energy &
Climate
…
...
Employment /
society
…
…
Profitability
…
Break out session
30
Brainstorming
sustainbility KPIs
per function
For your table’s “function” …
Complete the materiality factors on the
left of the page for your company
Brainstorm individually
Share / compare with the group
INSTRUCTIONS
20 mins
Summary / wrap up
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