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Seminar 2

Flemming Bligaard Pedersen

Financial Management and Good Governance

UN Global Compact – Consequences for our profession

Monday, 03 October 2011, 16.00 – 17.30

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UN Global Compact –Consequences for our profession

By Flemming Bligaard Pedersen President and CEO

Ramboll

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2011 Agenda

RambollThe Dubai case The core element Lessons learnedActions takenFIMS procedures affected

FIDICResponsibility of the Industry

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2011 The Dubai case

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21 February 2011 -Headline in one of the leading Danish newspapers: “Ramboll accused of slavery”

“Ramboll accused of involvement in slavery”

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In February 2011, the NGO Danwatch published a report on working conditions for migrant workers in Dubai’s construction industry

The report documented that two large contractors, ArabtecConstruction and Al Habtoor Leighton with whom Ramboll worked on 8 projects in Dubai, kept construction workers under slave like conditions

This story found its way to the Danish media 21 February 2011 and the days after, with about 60 articles in newspapers, magazines, television and on the internet

The Dubai case

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The two contractors mentioned took part in construction projects where Ramboll was involved as a consulting engineer for the developer – no contractual relationship existed between the contractors and Ramboll

Major impact on Ramboll’s image in Denmark - consequence of being a global company

The Dubai case

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2011 The core element

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Ramboll is a participant in the UN Global Compact and embraces the ten principles within:

human rights labour rights the environment, and anti-corruption

Ramboll became a participant in 2007 as a natural continuation of our fundamentals. We are committed to continuously achieving and showing progress within these areas

The core element

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The allegations against Ramboll state that we by silent complicitysupport the violation of human rights and are indirectly responsible for the behaviour of these contractors

Meaning that Ramboll failed to comply with the 2nd principle of the UN Global Compact:

1. Businesses should support and respect the protection of internationally proclaimed human rights; and

2. make sure that they are not complicit in human rights abuses

Through the UN Global Compact, we are obligated to respond to the actions of collaboration partners to whom we are not connected contractually

The core element

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Human Rights1. Businesses should support and respect the protection of internationally proclaimed human rights; and

2. make sure that they are not complicit in human rights abuses

Labour3. Businesses should uphold the freedom of association and the effective recognition of the right to collective

bargaining;

4. the elimination of all forms of forced and compulsory labour;

5. the effective abolition of child labour; and

6. the elimination of discrimination in respect of employment and occupation

Environment7. Businesses should support a precautionary approach to environmental challenges;

8. undertake initiatives to promote greater environmental responsibility; and

9. encourage the development and diffusion of environmentally friendly technologies

Anti-Corruption10. Businesses should work against corruption in all its forms, including extortion and bribery

The core element The ten principles:

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2011 Lessons learned

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In Ramboll, we are strongly against violations of human rights as described in the DanWatch report.

Ramboll strives to become a community consultant on a global scale. We know that corruption and violations of human rights occur in all countries with varying intensity.

We want to behave ethically and professionally in all our associations. We will promote the principles of the UN Global Compact and seek to implement them when we have the opportunity to influence.

Lessons learned

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However, we must admit that we were not well enough prepared for the consequences of our commitment

Focus has been on business integrity and conventional auditing

Human rights have not been included in the risk assessment of projects

We have not succeeded in making our employees fully aware of what our commitment really means - securing the right business behaviour also in relation to human and labour rights

What happens in one market can have major effect on other markets – consequence of being a global company

Lessons learned

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We continuously strive to live up to the UN Global Compact. This is a process which means that we continuously launch initiatives that strengthen our alertness and procedures in accordance with the principles in the UN Global Compact.

If, through any of our projects, we encounter problematic circumstances of a professional or business ethical character –including matters concerning human rights - it is always our duty to actively making the customer or business partner aware of this. If we find that the actions taken do not live up to our expectations, we have to reconsider the basis for further collaboration with the customer or business partner.

Actions taken

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The Dubai case has given us reason to entail a more systematic approach in relation to issues concerning human rights

We have introduced an ‘Obligation to act’ policy to guide employees on what they must do and why this is important to do

The policy also outlines a ‘policy statement’ which we proactively must ensure that all customers and suppliers receive

The policy statement outlines:

Ramboll’s position on sustainable development and good corporate citizenshipOur expectations to our customers and business partners That we will act, make aware, and go into dialogue if we identify matters that are unacceptable

Actions taken

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To make the ‘Obligation to act’ policy operational, we are adjusting our FIMS quality management procedures and systems to include other aspects under our corporate responsibility concept

We are communicating and training employees of the policy’s meaning, importance and impact on our business behaviour

We are communicating our policy statement to all customers

Actions taken

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The scope of the FIMS requirements (potential wrongdoing) is in Ramboll expanded to include violation of human rights, labour rights and the environment, and is not limited to bribery, extortion, fraud and collision as previously

FIMS Integrity policy‘Obligation to act’ policy/code of conduct

FIMS tools & manuals Quality management integrity manuals and guidelinesProject risk assessment Project integrity screening form Project integrity record file

FIMS documentation & approval Audits Management reviewQuestionnaire and reporting of integrity critical customers and partners

FIMS procedures affected

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2011 Responsibility of the Industry

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The risk and challenges we face in this area are not specific to Ramboll but generic to our industry

Professional consultancies experience increased sustainability requirements from customers and society

Focus has been on business integrity, but what about human rights, labour rights and the environment?

The increasing globalisation challenges our profession on sustainability – do we have the right attitudes and structures in place to act responsibly?

We must establish common policies and procedures to ensure sustainable growth within our industry

Responsibility of the Industry

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Thank you