Examples of Best Practice
Rio Tinto includes an excellent graphic to illustrate responsibilities and information flow relating to the preparation of the company's Social and Environment Report.
This makes it apparent that Rio Tinto understands the importance of bringing corporate policy makers together with operational managers to produce a report that has meaning inside and outside of organization.
Procter and Gamble builds credibility and uses resources most effectively by providing detailed data on areas of greatest concern to the company.
In the 1999 Sustainability Report emphasis was placed on water quality and use and on health and hygiene. Other more general indicators of progress were also reported upon but the detailed assessment in two areas gives the impression that the company is looking for triggers of improvement in areas where they are needed the most.
Norsk Hydro has applied life cycle assessment to the workings of the entire company.
The aggregated data allows for a striking overview of company consumption of natural resources and pollutant emissions in light of annual profits. LCA has also been completed for each major company division.
Electrolux has also reported on the life cycle analysis of a number of their products. A strong impetus for the appliance industry to offer products with reduced environmental impact is the fact that the main environmental impact is usually greater in product use than during production, and furthermore is closely connected to the individual household economy.
A life cycle assessment of a washing machine for example shows that about 80 percent of the total environmental impact during the life of the machine consists of water, energy and detergent consumption. A similar analysis of the total cost of the entire life cycle of the machine shows that the cost of water, energy and detergent consumption exceeds the initial purchase price.
For the customer, this means that choosing an appliance with a high environmental performance also means long-term savings. For the appliance industry it means making consumers aware of this connection.
Replacing old, inefficient white-goods with new generation, resource-efficient appliances is beneficial for the environment.
In reporting on its definition of sustainable development, Bristol-Myers Squibb goes beyond the traditional one-line statement to include a comprehensive look at the all the issues that have an impact on operations and stakeholders (both local and global).
BMS' overview of sustainability includes policy statements on external evaluation of EHS policies and procedures, supplier compliance, technology transfer, charitable contributions, transportation impacts, local noise and odor issues, new acquisition and divestiture processes, animal testing, pharmaceutical residuals in the environment, genomics, biosafety, and bioprospecting.
The Global Reporting Initiative (GRI) is a multi-stakeholder collaboration among the Coalition of Environmentally Responsible Economies (CERES) and numerous organizations, united to develop a common framework for global sustainability reporting. Issues reported using these guidelines are not limited to environmental performance, but also include social and economic indicators.
As a member of the GRI Steering Committee, General Motors is pilot testing the draft GRI guidelines in its report. Bristol-Myers Squibb, Electrolux, Proctor and Gamble and Norsk Hydro also followed some of the GRI guidelines in the preparation of their reports .
Electrolux defines its "pressures" as being the global trends of population growth, economic growth and increasing resource consumption. The environmental problems that results from these-the "states" - to which society responds through market forces, resource and cost efficiency, and regulations. These responses constitute the "driving forces to which Electrolux must respond in a responsible and proactive manner if it is to remain a leading company in the global appliance market.
This is the first report designed specifically as an electronic presentation. There are both benefits and limitations to doing it this way. On the plus side, with the rapidly expanding use of the World Wide Web this format makes the report accessible to more people worldwide, creates a forum for sharing more information and gives access to a level of detail not available in printed versions.
It has been specifically designed for web viewing with simple graphics and fast download times to make it user friendly. It also saves paper and resources and provides Monsanto with a cost-effective alternative to printing a hard-copy version.
On the negative side, the report is essentially unavailable to anyone who does not own or have access to a computer. This includes most of the developing world and a large number of households in places like Canada and the US. In addition, there are certain ease-of-use benefits to a printed report. Monsanto is asking for feedback to determine how well it works before issuing the 1999 report.
DuPont Canada demonstrates a commitment to employee health, not only by reporting on injuries and illnesses resulting in lost time, but also by reporting on employee physical fitness levels.
In its 1998 EHS report, DuPont provides data on rates of smoking, cholesterol levels, blood pressure and obesity among its employees. Benefits claims costs (as a percentage of payroll costs) are included as a EHS performance indicator.
In addition, DuPont reports on the availability of on-site fitness facilities, on-site nutritional and health counselling, and health information seminars, to demonstrate the link between its policy and actions with regard to employee health.
BP also demonstrates its commitment to achieving these targets through performance measures, which are included in the report. BP Amoco reports on target attainment for key human resources activities through a number of performance indicators. They include:
BP Amoco also reports on the objective research, carried out both in the UK and internationally, which seeks the views of the public, business leaders, opinion-formers and NGOs. A 12-country study confirmed the importance of social and environmental responsibility as a factor in determining opinions about companies.
BP Amoco's Global Image Tracking Survey measures the performance of BP's brand in comparison with its main competitors, which helps BP to respond to new needs and to improve the quality of its products and services.
In its Towards Sustainable Development report, Ontario Power Generation includes a description of the benchmarking study conducted by a consultant to compare OPG's corporate environmental management practices and processes to those of best-in-class organizations.
The consultant's report affords OPG a third-party evaluation of both strengths and weaknesses in its corporate environmental practices and processes, and an essential baseline for measuring its progress. A synopsis of the findings is provided and OPG also outlines its response.
A Comprehensive Reporting Structure
Connecting Life Cycle Assessment to Financial Performance
Defining Sustainable Development
Pilot Testing the Global Reporting Initiative Sustainability Guidelines
Using the Pressure-State-Response Framework to Define Strategic Directions
The Paperless Report
Monsanto's report is presented exclusively as an electronic document. This is a departure from the past when these reports were been printed. For the past several years, these have been converted into electronic presentations and made available on the Monsanto website but they were not designed specifically for Internet use.
A Commitment to Employee Health
Employee Performance Indicators
In 1998, for the first time, BP Amoco set global targets for its people management process. Some of these processes, such as upward feedback and personal development planning, are at the leading edge.
Likewise, BP Amoco also reports on its People Assurance Survey, an employee attitude survey with questions aligned closely to the company's Commitment to Employees. The survey measures overall morale, attitudes towards the company's social, financial, and environmental performance, and day-to-day people management, including feedback, coaching, workload and fair treatment.
Stakeholder Relationship Performance Indicators
Benchmarking Corporate Environmental Management Practices
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