sustainable development as an integrated business approach

A Shell-Bechtel Venture

Sustainable Development as an Integrated Business Approach

Tools and Strategies

15 October 2004

Stephen Raab and Sean Kiernan


InterGen Overview

• Overview of InterGen’s international operations

• Challenges integrating Corporate Social Responsibility and Sustainable Development programs

• HSE and SD – the perfect marriage?

• Early history of InterGen’s SD programs

• Why do we need more?

• What will full integration of SD achieve?

• InterGen’s corporate SD Policy

• SD Global Standards structure


InterGen Overview

• SD/CSR indicators

• Application of SD tools

• InterGen SD Screening and Gap Analysis Tool

• SD gap analysis program implementation

• Asset specific SD plans

• Overview of corporate SD program

• Success factors of corporate SD program

• Please do not hesitate to call!


InterGen Global Portfolio

Colombia TermoEmcali 235MW China

Meizhou Wan 725MW

Turkey Adapazari 780MW Gebze 1,555MW Izmir 1,525MW

Egypt Sidi Krir 685MWEgypt Sidi Krir 685MW

Australia Millmerran 840MW Callide C 840MW

Australia Millmerran 840MW Callide C 840MW

North America

Wildflower (CA) 215MW

Cottonwood (TX) 1,235MW

Magnolia (MI) 900MW

Redbud (OK) 1,160MW

United Kingdom Rocksavage 780MW Coryton 795MW Spalding 795MW

United Kingdom Rocksavage 780MW Coryton 795MW Spalding 795MW

Netherlands Rinjmond Energie 795MW

Mexico

Bajio 600MW

La Rosita (Base) 765MW

La Rosita (Peaker ) 300MW

PhilippinesQuezon 440MW

SingaporeIsland Power 750MW


Challenges of SD/CSR Program Integration

• Its not community/public relations• Programs supported by multiple functional

groups (Legal, BD, O&M, Public Affairs, HSE)• Short-sighted promises made in development

need to get carried into operations• Environmental conditions

– Technology (emission controls)

• Economic conditions– Merchant facility vs. fully contracted facility

• Social Conditions– Developed vs. Developing Countries


HSE and Sustainable Development – The Perfect Marriage?

• Young company (less than 10 years old)• HSE program development had three-year lead

time• Proven three-tiered program structure

– Policies– Global Standards– Site Specific Programs

• Continuous improvement well established• Functional groups • SD benefits from proven and integrated HSE

structure


Early History of InterGen’s SD Program • Philippines

– Social programs: education, health and nutrition program for nearby village

• Australia – Cultural sensitivity program for nearby

Aboriginal tribes

• Mexico – Green building design and technology for

nearby village


Why do we need to do more?

• Lack of identification of SD risks/opportunities

• Inconsistency in project SD screening

• Varying focus on environmental, economic and social aspects

• Difficult to budget through life of project

• Overall lack of clarity – special program or the way we do business?


What will full integration of SD achieve?

• Able to meet DJ GSI/London FTSE4Good criteria?

• Positive effect on financial performance?

• Reduction of environmental compliance risk?

• Reduction of environmental/social risk to business development (permitting phase)?


Integration of SD at InterGen• Corporate SD Policy

– Corporate Commitment – Integrated Management – Communications – Environmental Stewardship – Impact Mitigation – Use of Natural Resources – Economic Development – Employment – Community Development – Human Rights – Cultural Sensitivity


SD Global Standards Structure• InterGen Sustainable Development Model (ISDM)

InterGen Corporate Policy 1.17 - Sustainable Development

Environmental SocialEconomic

Environmental Stewardship SDM-HSE-0104

Impact Mitigation SDM-HSE-0105

Use of Natural Resources SDM-HSE-0106

Governance

Corporate Commitment SDM-HSE-0101

Integrated Management SDM-HSE-0102

Communications SDM-HSE-0103

Community Development SDM-HSE-0109

Human Rights SDM-HSE-0110

Cultural Sensitivity SDM-HSE-0111

Economic Development SDM-HSE-0107

EmploymentSDM-HSE-0108


SD/CSR Indicators • Alignment with externally recognized indicators

via WEC ICSR Tool– GRI: Global Reporting Initiative Sustainability

Reporting Guidelines – BSR: Business for Social Responsibility “Introduction

to Corporate Social Responsibility”– Sullivan: Global Sullivan Principles– United Nations: Kofi Annan's United Nations Global

Compact Principles – OECD: Organization for Economic Cooperation and

Development Guidelines for Multinational Enterprises– SA8000: Council on Economic Priorities "Social

Accountability 8000 Standard"


Application of SD Tools • Gap Analysis Tool

– Single tool supports a consistent approach worldwide

– Tool can be applied in all phases of power business (business development, engineering & design, construction and operations)

– Tool enables assets to assess, on an item-by-item basis, the project specific sustainable development risks and opportunities

– Gaps identified can be rolled into a prioritized Gap Implementation Plan

– A, B & C priorities reviewed and addressed


InterGen SD Screening & Gap Analysis Tool


SD Gap Analysis Program Implementation

• Environmental– GHG Protocol

• Economic – Economic Impact Assessment

• Social– Community Needs Assessment Tool


Asset Specific SD Plans

• Identification of annual SD risks/opportunities• Development of prioritized annual SD goals and

objectives• Goals placed into site specific objectives year-

to-year


Overview of InterGen’s Corp SD Program

SD Infrastructure:• Corporate SD Policy

• SD Global Standards

• Alignment with International SD/CSR Indicators

Applying SD:

• SD Screening and Gap Analysis

• SD Gap Implementation

• Consistent Project SD Plans


Success Factors of Corporate SD Program

• Corporate level screening of SD risk/opportunities – Corporate SD Policy

• Project/Asset level screening of SD risks/opportunities

• Development of prioritized overall Project SD implementation plan

• SD performance measurement, benchmarking, continuous improvement

• Ability to perform at DJ GSI and FTSE 4 Good level


Please do not hesitate to call! InterGen15 Wayside RoadBurlington, Massachusetts 01803 USA

• Stephen Raab – [email protected]– Office: (781) 993-3035– Mobile: (617) 331-8993

• Sean Kiernan– [email protected]– Office: (781) 993-3037– Mobile: (617) 799-2263

sustainable development as an integrated business approach

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