THE UN GLOBAL COMPACT

1
THE UN GLOBAL COMPACT

• THE ENVIRONMENT PRINCIPLES
• Session E3 Principle 8

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Who is Magnus Enell?

• Today, since August 2003-
• Adjunct professor at IIIEE. Autumn 2004?
• Senior Manager PricewaterhouseCoopers,
  Sustainable Business Solutions October 2007?
• Executive Director WWF Trade Center for
  Sustainable Energy Solutions August 2007?
• Enell Sustainable Business AB. August 2003? (not
  so much time for that today!)
• Yesterday 1995-2003 (ITT Corporation/ITT
  Industries/ITT Flygt)
• Corporate Manager for Sustainable Development
• Environmental Manager
• Before yesterday
• The World Bank
• Swedish Environmental Research Institute IVL
• University of Lund (

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Who is Magnus? cont.

• Member of the Global Reporting Initiatives
  Stakeholder Council
• Ex. Focal point for the UN Global Compact Nordic
  Network
• Board member of the Global Water Partnership
• Member of the Swedish Government's Council for
  Sustainable Development
• Member of different ISO projects (e.g. EMS,
  Environmental Communication, Social
  Responsibility)
• Consulted by the Confederation of Swedish
  Enterprises
• Ex Vice chair for the Swedish Association of
  Environmental Managers
• Chair for Swedish Engineers for the Environment
• Moderator, facilitator and speaker

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My specific areas of competence

• Environmental and sustainable development/CESR
  issues on both strategic and operational levels
• Management systems
• Stakeholder dialogue (communication and
  reporting)
• The added value (in monetary values) of working
  with environment and sustainable development
• Products (IPP, LCA, EPD, functional sales)

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UNGC Principle 8

• Businesses should undertake initiatives to
  promote greater environmental responsibility

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Principle 8Environmental Responsibility

• Business Environmental Responsibility A change
  of approach
• From To
• Inefficient resource use ? Resource productivity
  
• End-of-pipe technology ? Cleaner production
• Public relations ? Corporate governance
• Reactive ? Proactive
• Management systems ? Life-cycles, business
  design
• Passive communication ? Multi-stakeholder
  dialogue
• Linear/throughput approach ? Closed-loop approach
• Confidentiality ? Openness and transparency

From Elkington J. Cannibals with Forks
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New Logic
Another way of the change
Old Logic

• Things
• Newtonian
• Org. as machine
• Hierarchies
• Teaching
• Capital growth
• Human resources
• Market share
• Separate from nature

• Ideas, knowledge
• Quantum
• Org. as communities
• Networks
• Learning
• People growth
• Human relations
• Mind share
• In harmony with nature

From one of Al Gores presentations
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The new thinking is about

• Creating desired futures
• Back casting from sustainability principles
• Cross border collaborations
• Changing the rules of the game
• Shifting attention and measurements to
• Optimizing wholes not parts
• What is important not what is measurable
• Long term consequences not only short term
  results

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Principle 8Environmental Responsibility
Example The shift towards cleaner production
strategies
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Lets cooperate
THE BUSINESS SECTOR
Of course
Yes, if we must
Lets Cooperate
Trust us
Show us
Tell us
We do
THE SOCIETY
1980s
1990s
2000s
1970s
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Some history.

• 1962 Rachel Carsons Silent Spring
• 1968 Swedish EPA
• 1969 Swedish Environmental Law
• 1972 The Stockholm Conference
• 1987 The Brundtland Commission
• 1992 The Rio Conference
• 1994 Swedish Association of Environmental
  Directors
• 1995 Environmentally Driven Business Development
• 1995 EMAS
• 1996 ISO 14001
• 1997 Global Reporting Initiative (GRI)
• 2000 UN MDG and UN GC
• 2002 The Johannesburg Conference
• 2005-2006 Hurricans, IPCC, Al Gore, Stern
• 2007 Today
• 2025-2050 Within another 20-45 years..???

1962-2007 is only 45 years
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Differentstep of workingwith the environment
Proactive Environmental work integrated with
other work An holistic approach (economy,
environment and social) Regards the
sustainability work as a profitable work Links
the work to the supply chain and indirect
aspects From production- to product
responsibility Independent assurance statement of
the Sustainability Report
Active Established environmental work Focus on
direct and indirect aspects Environmental work
still separate from other work A first step
towards external reporting, mainly regarding
environment
Reactive Fulfilling customers requests Fulfilling
laws Environmental work separate from other
work Focus on direct aspects No reporting of the
work
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Principle 8Environmental Responsibility

• Chapter 30 of Agenda 21 (1992)
• For business, environmental responsibility
  entails
• the responsible of ethical management of
  products and processes from the point of view of
  health, safety and environmental aspects.
• Towards this end, business and industry
  should increase self-regulation, guided by
  appropriate codes, charters and initiatives
  integrated into all elements of business planning
  and decision-making, and fostering openness and
  dialogue with employees and the public.

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Principle 8Environmental Responsibility

• Integrating Environmental Responsibility into
  Business
• The Malmö Ministerial Declaration (UNEP 2000)
• A greater commitment by the private sector
  should be pursued to engender a new culture of
  environmental accountability through the
  application of the polluter-pays principle,
  environmental performance indicators and
  reporting, and the establishment of a
  precautionary approach in investment and
  technology decisions.
• This approach must be linked to the development
  of cleaner and more resource efficient
  technologies for a life-cycle economy and efforts
  to facilitate the transfer of environmentally
  sound technologies.

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Principle 8Environmental Responsibility

• Business Case for Environmental Responsibility
  (see also Module 2)
• Improve resource productivity
• New economic instruments (taxes, charges, trade
  permits)
• Environmental regulations are becoming tougher
• Favourable insurance cover for lower risk
  companies
• Easier lending terms from banks
• Positive effect on a companys image and the
  brand name
• Asset for recruitment the first choice!
• Environmental pollution threatens human health
• Customers are demanding cleaner products
• International trade barriers
• Reduce liabilities

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Principle 8Environmental Responsibility

• Characteristics of Environmental Responsibility
• Applying a precautionary approach
• Adopting the same operating standards regardless
  of location
• Integrating environmental considerations in the
  supply-chain
• Facilitating transfer of environmental technology
• Contributing to environmental awareness in
  company locations
• Communicating openly with the local community

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Principle 8Environmental Responsibility
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Principle 8Environmental Responsibility

• Obtaining management commitment for environmental
  responsibility
• Identify the affected persons and key issues by
  asking
• Who in the company currently has authority to
  issue policies?
• Who has responsibility for environmental issues?
• What are the most critical environmental issues
  facing the company?
• What are the main risks and opportunities
  associated with these issues?
• Which line managers are most directly affected by
  these issues?
• What are the resource implications of addressing
  the risks/opportunities?
• What further information is needed to develop an
  environmental plan?

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Principle 8Environmental Responsibility

• Tools for Corporate Environmental Responsibility
• Environmental Management Tools
• Environmental Assessment Tools
• Environmental Monitoring and Auditing Tools
• Environmental Reporting and Communication Tools

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The five steps approach
Policies Strategies
Management review
Planning
Review Continuos Improvement
Targets
Implementation
Follow-up
Indicators Monitoring
Communication Internal/external
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Principle 8Environmental Responsibility

• Tools for Corporate Environmental Responsibility
• Environmental Management Tools
• Environmental Management Systems
• ISO 14001
• EMAS
• Environmental Management Strategies
• Cleaner Production, Sustainable Consumption and
  Eco-efficiency
• Life-cycle management
• Design for the Environment/ Eco-design
• Product stewardship
• Product-services systems
• Industrial ecology 

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Principle 8Environmental Responsibility

• Business Benefits of Environmental Management
  Tools
• An EMS helps a company to
• Identify control its environmental aspects,
  impacts and risks
• Achieve compliance with environmental legislation
  - present and future
• Define principles to guide future environmental
  responsibilities
• Establish short, medium and long-term goals for
  environmental performance
• Determine resources needed to achieve those goals
• Balance costs and benefits for all stakeholders
• Define and document specific tasks,
  responsibilities, authorities and procedures
• Communicate these throughout the organisation,
  and train people
• Measure performance against standards and goals,
  and modify as necessary

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Principle 8Environmental Responsibility

• Tools for Corporate Environmental Responsibility
• Environmental Assessment Tools
• Environmental Impact Assessment
• Environmental Risk Assessment
• Cleaner Production Opportunity Assessment
• Environmental Technology Assessment
• Life-Cycle Assessment - LCA
• Total Cost Assessment/Life Cycle Cost - LCC

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Principle 8Environmental Responsibility

• Business Benefits of Environmental Assessment
  Tools
• Environmental Assessment Tools help to identify
  business
• Risks - that could lead to losses for company,
  for example from
• Contamination of a product such that it is
  unacceptable for markets
• Injury or illness of workers or local communities
• A pollution problem that undermines the position
  of the enterprise in the national or
  international market
• Opportunities that could lead to gains for
  example from
• The reduction of energy and resource consumption
  and therefore costs of production
• Reducing pollution or recycling wastes
• Selling the product to a market which imposes
  environmental requirements

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Principle 8Environmental Responsibility

• Tools for Corporate Environmental Responsibility
• Monitoring and Auditing Tools
• Environmental Performance Indicators
• Environmental Auditing
• Pollution and Waste Audits
• Supply chain audits and assessments

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Principle 8Environmental Responsibility

• Business Benefits of Environmental Auditing Tools
• Environmental Auditing Tools help a company to
• Assess the status of the companys environmental
  performance
• Identify environmental aspects impacts of
  processes products
• Determine key performance indicators and monitor
  against objectives and targets
• Gather and analyse information for sustainability
  reporting

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Principle 8Environmental Responsibility

• Tools for Corporate Environmental Responsibility
• Reporting and Communication Tools
• Corporate Environmental/Sustainability Reports
• Ecological footprints
• Stakeholder engagement activities  
• Developing partnerships for progress
• Environmental Labelling Programmes