Overview of The Global Environmental Management Initiative GEMI

1
Overview ofThe Global Environmental Management
Initiative(GEMI)
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What is GEMI?

• 39 Member Companies
• Representing more than 22 Business Sectors
• Annual Sales more than 915 billion USD
• Global Headcount more than 2.5 million
• Number of Manufacturing Facilities Worldwide
  more than 3,034
• Non-profit 501(c)(3) Organization
• Not an Advocacy Organization

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Current GEMI Members
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Vision Mission of GEMI

• Vision
• To be globally recognized as a leader in
  providing strategies for businesses to achieve
  EHS excellence, economic success, and corporate
  citizenship.
• Mission
• Business helping business improve EHS
  performance, shareholder value, and corporate
  citizenship.

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GEMI Leaders

• GEMI 2007 Board of Directors
• Chair Stan Christian, Motorola
• Vice-Chair Bob Accarino, Abbott Laboratories
• Finance Chair Karl Fennessey, The Dow Chemical
  Company
• Membership Chair Leslie Montgomery, Southern
  Company
• Benchmarking/Next Initiatives Chair Mark Hause,
  DuPont
• Tools Work Group Chair Moe Bechard,
  JohnsonDiversey
• Communications Marketing Chair Kelley Kline,
  Smithfield Foods
• Senior Advisory Council (SAC) Chair Jack Kace,
  Roche
• Chair Emeritus Mitch Jackson, FedEx
• GEMI Management
• Steven Hellem, Executive Director
• Amy Goldman, Director

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What Makes GEMI Different?

• Work products/tools/reports
• Benchmarking
• Interaction and networking
• Cost savings
• Increased value to business
• Credibility
• Multi-sector responsibilities
• Members who desire to be on the cutting edge

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How GEMI Works

• Board of Directors from member companies
• Senior Advisory Council (SAC)
• Members provide sweat equity
• Year-round project activity
• Quarterly meetings
• Bi-annual conference
• Member companies provide financial support

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Current GEMI Activities

• Emerging Issues
• Communications Marketing
• Business Climate Change
• Information Management Systems (IMS)
• Metrics
• Strategic Futures
• Sustainable Development
• Tools Evaluation Implementation Strategies
• Water Sustainability

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TQEM and EnvironmentalManagement Systems

• Quality in the 80s impacted Environment in the
  90s
• Environment was perceived as a cost adder
• The Environmental Department was responsible for
  environment
• Then Environment started to become a Major
  business issue
• GEMI developed work tools directed at
  environment/business integration
• Environment became a value adder
• 1996 - ISO 14001, Environmental Management
  Systems published

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Developing Value Driven and Integrated Tools
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2007 GEMI Tools
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The GEMI Metrics Navigator Rollout Events
March 2007
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GEMIs Metrics Work Group

• History
• Work Group formed in 2005 to explore metrics.
  Three workshops with experts held between January
  and May 2006.
• Objective
• To develop a process and planning tool to help
  identify and develop key material (i.e., relevant
  and substantive) metrics.
• GEMI Co-Chairs
• Leslie Montgomery, Southern Company
• Jim Kearney, Bristol-Myers Squibb Company
• Consultant
• Beth Beloff and team from Bridges to
  Sustainability of Golder Associates
• Workshop Collaborators
• Diverse group of 25 organizations from both the
  US and UK

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Sustainability as a Business Issue

• Business is evolving how it addresses the breadth
  depth of sustainability issues
• Potential stakeholders have multiplied and grown
  more diverse
• Difficult to address all
  aspects at same degree
  same schedule
• Choices must be made
  a strategic direction
  must be set

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The Challenge / The Solution

• Metrics Need to
• Inform strategy
• Provide meaningful information
• Support decision-making
• Complement traditional measurement systems
• Yield value to an organization

• GEMI Metrics NavigatorTM
• Roadmap to identify critical few metrics
• Six steps to develop the right mix of metrics
• Workbook to develop and implement metrics that
• Inform business strategy
• Enhance decision-making
• Measure what is right
• Communicate effectively

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Who Should Use the Tool?

• Any type of business
• Managers, EHS and SD practitioners
• Business schools
• Applied at any organizational level
• Process is flexible and can be tailored to meet
  specific needs

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Value of the Tool

• Strength
• A rigorous thought process
• Value
• Helps think through the process and suggests
  methods to use or augment in-house approaches
• Principal benefit
• Can advance business performance by developing
  and using non-financial measurements

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Tool Overview

• A tool for management to help their organization
  develop an appropriate approach to metrics
• Outlines a 6-step process to assist with
• Determine what is material to your organization
• Assess what and how to measure appropriate
  metrics
• Assure effectiveness
• Includes 19 GEMI member case studies, 8 EAG
  perspectives, 10 worksheets and additional online
  resources

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GEMI Case Examples

• FedEx
• 3M (3)
• Eastman Kodak Company
• Bristol-Myers Squibb Company
• The Scotts Company
• Abbott
• DuPont (3)
• The Dow Chemical Company

• The Procter Gamble Company
• Intel Corporation
• Southern Company
• Johnson Controls, Inc
• Johnson Johnson
• Occidental Petroleum Corporation
• Pfizer Inc

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EAG Perspectives

• What is the measurement challenge? (Jim L.
  Ritchie-Dunham)
• What contributes to shareholder value? (Jean
  Pogo Davis)
• How can one develop sustainability leaders?
  (Paul Tebo)
• Are social goals relevant to business? (Kirvil
  Skinnarland)
• How can one align environmental, social and
  business values? (Paul Tebo)
• How can one form an effective picture for
  different users of metrics? (Jim L.
  Ritchie-Dunham)
• What are the characteristics of a learning
  organization? (Eve Mitleton-Kelly)
• Do your metrics drive innovation? (Mark B.
  Milstein)

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Process Overview

• Steps 13 What is Material
• Identifies what is material (relevant)
• Step 4 What How to Measure
• Defines Key Performance Indicators (KPIs)
• Sorts through possible metrics
• Ensures validity of metrics
• Steps 56 How to Assure Effectiveness
• Distills data into useful information
• Critical assessment of metrics the process

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Step 1 Understand the Context

• Describe business success factors
• Summarize current sustainability focus
• Offers methods to document current status and gaps

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Step 2 Assess Issues

• Prioritize issues according to
• Relevance to business
• Significance of impacts from the business
• Level of concern to external stakeholders
• Ability to control or influence

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Materiality External Perspective
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Bristol Myers Squibb Company Reporting
Management of Metrics

• Began publishing environmental performance data
  in the 1990s to meet stakeholder expectations
• Driver for extensive infrastructure, procedures
  and database to collect, manage, verify and
  report data
• Ability to assess companys potential
  environmental impacts
• Identification of cost-saving opportunities
• Cross-functional involvement and company-wide
  awareness of sustainability issues
• System helps assess potential impacts, set
  performance targets, and measure progress of
  goals (2010 sustainability goals)
• Today, BMS tracks 60 environmental parameters in
  50 facilities worldwide and has issued
  sustainability reports since 2001

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Step 3 Develop Key Objectives

• Short list the most material issues
• Select few critical key objectives based on
• Business value
• Societal value of addressing the issues

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Step 4 Define KPIs

• What are the objectives and targets?
• What are the uses
• Who are the users?
• How are the metrics defined and calculated?
• Where are the data?

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Metric Types

• Outcome
• One-dimensional (energy consumption per year)
• Cross-cutting (energy consumption per unit of
  value add)
• Process
• Management and operations ( energy review
  activities per year)
• Consequence
• Business (cost reduction from energy savings
  program)
• Societal (land area saved from raw material
  reductions)

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Uses of Metrics

• Learning
• Benchmark internally
• Evaluate alternatives
• Decision-making
• Identify improvement options
• Accountability
• Report to stakeholders
• Track performance
• Demonstration
• Build the business case
• Promote sustainable initiatives

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DuPont Metrics to Drive Sustainable Growth

• Different metrics can be appropriate for
  different uses
• SVA/lb (shareholder value add per pound of
  production)
• Combines multiple dimensions into one number
  (pound of production as
  proxy for environmental impacts)
• Useful for planning and strategic discussions
• Operationally too sensitive to factors unrelated
  to environment (e.g., market fluctuations,
  acquisitions/divestures)
• Marketplace and footprint reduction goals and
  metrics
• Drive sustainable growth into operations
• Drive same goals as SVA/lb
• less sensitive to economic fluctuations
• better address stakeholder concerns
• Example goal to nearly double revenues from
  non-depletable resources to at least 8 billion
  by 2015

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Step 5 Evaluate Communicate

• How to implement the metrics
• How to integrate into existing information
  management systems
• How the metrics can be presented to provide
  useful insights to audience

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Southern Company Target Zero to Change
Mindsets

• Set target zero safety incidents
• Beliefs
• Expectations
• Performance standards
• Principles Believe it! Expect it! Live it!
• Believe all injuries and occupational illnesses
  can be prevented all tasks can be planned and
  completed safely
• Understand working safely is a condition for
  employment managers, supervisors and individuals
  held accountable
• Commit to health safety rules, continuous
  improvement leaders must recognize and reward
  success
• Results improved performance (first year)
• Recordable injuries reduced by 25 percent
• Lost work time injuries reduced by 40 percent

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Johnson Johnson Communicating Progress
Toward Goals

• Dashboard displayed for employees and managers
• Performance insights at multiple levels
• Ratings use both process and outcome metrics
• Composite indices combine multiple
  metrics/criteria into single score
• Shown as on target, caution or needs
  attention (light/medium/dark shades used for
  green/yellow/red)

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Step 6 Evaluate Improvement
Integration

• Analyze the business value that has been achieved
  through the metrics development process

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Evaluation

• Do the metrics?
• Inform business decisions, promote learning and
  demonstrate the business case
• Support the business strategy
• Engage employees and external stakeholders
• Respond to issues identified by stakeholders
• Change the behavior of individuals
• Help integrate sustainability thinking into the
  organizations culture
• Reflect business values and yield business
  benefits

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Summary Worksheet

• Captures critical conclusions from each step
• Provides a logical framework for communicating
  the what and why of metrics
• Can summarize the metrics development process
  for senior management

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In Conclusion

• Regardless of how this tool is used, it should
  generate meaningful conclusions
• This tool does not recommend specific metrics
• The tool provides
• a framework for identifying and managing
  environmental, social and economic issues
• a process for developing the critical few metrics
  which measure performance
• Additional resources to support the tool are
  online at www.gemi.org/metricsnavigator

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The Global EnvironmentalManagement Initiative
(GEMI)Connecting the Drops Toward Creative Water
Strategies --A Water Sustainability Tool
http//www.gemi.org/water
Published June 2002
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GEMI Water Sustainability Tool
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GEMI Water Sustainability Tool

• Module 1 Water Use, Impact, Source Assessment
• Module 2 Business Risk Assessment
• Module 3 Business Opportunity Assessment
• Module 4 Strategic Direction Goal Setting
• Module 5 Strategy Development Implementation
• Supplemental web site www.gemi.org/water

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The Global Environmental Management Initiative
(GEMI)

• Collecting the Drops A Water
• Sustainability Planner
• http//www.gemi.org/waterplanner

January 2007
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GEMIs Water SustainabilityWork Group

• History
• 2000 Work Group formed and published Connecting
  the Drops Toward Creative Water Strategies and
  supplemental web tool.
• 2003 Work Group reformed to develop Collecting
  the Drops A Water Sustainability Planner
• Objective To develop a detailed and
  comprehensive water sustainability-planning tool
  that can be used by a company to establish
  baseline performance, assess opportunities, set
  goals and evaluate progress against objectives
• GEMI Co-Chairs
• Karl Fennessey, The Dow Chemical Company
• Paul Halberstadt, ConAgra Foods
• Harry Ott, The Coca-Cola Company
• Consultant Gannett-Fleming

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Collecting the Drops A Water Sustainability
Planner Overview

• Introduction
• Module 1 Facility Water Use and Impact
  Assessment Program
• Module 2 Water Management Risk Assessment
  Questionnaire
• Module 3 Case Examples and Reference Links
• Calculators Calculation programs and References
• Reference Definitions

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Introduction

• Collecting the Drops A Water Sustainability
  Planner is segregated into 3 Modules that guide a
  facility user through the process of assessing
  the
• Facilitys relationship to water on a local and
  regional basis
• Identification of specific challenges and
  opportunities
• Identification of public, community and social
  considerations that could be taken into account

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Introduction (contd)

• The modules/programs assist the facility user in
  assessing the many circumstances that can affect
  the
• Adequacy and quality of the supply
• Impact of the facility on the local water supply
  and water quality
• Need for communication to increase awareness and
  community involvement to manage water resources
  wisely

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Module 1 Water Use and Impacts

• First step in identifying overall facility water
  uses and impacts posed by the operations.
• Includes guidance for preparing a facility water
  block flow diagram.
• Define the process unit of interest, draw an
  imaginary dotted line around the process unit and
  identify and ultimately quantify the water
  inputs, water losses (to air, land and to
  product) and wastewater discharge.  Lines should
  connect to each block (labeled with the name of
  the water-using process) and should include
  information of total water flow per unit time and
  water quality. 

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Module 1 Example Block Flow Diagram
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Module 1 Water Balance Program

• The Water Balance Program includes 3 spreadsheets
  that require the following inputs
• Water supplied
• Process/facility losses
• Total volumes discharged or returned
• The Water Balance Program
• Calculates a result based on user input that will
  indicate a complete balance or a discrepancy
  (water unaccounted for). 
• Provides a percent closure result.
• Provides acceptable margins of error based on
  discrepancy percentage versus average volume of
  water used

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Module 1 Water Balance Program (contd)
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Module 1 Reference Links

• Includes Important Links for Reference
• Case Example Calculations
• Engineering Calculations
• Water Balance Program
• Water Balance Case Example
• Water Management Risk Assessment Tool

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Water Balance Calculator

• Includes Other Helpful Calculators and Reference
  Information
• Fluid Flow Fundamentals
• Friction Loss and Flow
• Pump Hydraulic Horsepower
• Water Balance
• Why Waste Water
• Calculations
• Unit Conversion
• Rules of Thumb

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Module 2 Water Management Risk Assessment

• Web-based interactive program in the form of a
  Water Management Risk Assessment Questionnaire
• Requires input of facility water considerations
  and input for levels of risk
• Water-related risk questions organized and
  presented in 6 risk categories

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Module 2 Water Management Risk Assessment
Questionnaire (contd)

• Requires input from the facility user to answer
  general questions as well as specific
  vulnerability/risk questions
• Water use and impact questions have been
  organized and presented in the following 6 risk
  categories
• Watershed
• Supply Reliability
• Efficiency
• Compliance
• Supply Economics
• Social Context
• Print the questionnaire by clicking on the Print
  Entire Questionnaire icon on the right-hand
  margin of the Module 2 page
• Review the questions and note your responses for
  future input into the web based questionnaire

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Module 2 Water Management Risk Assessment
Questionnaire (contd)

• Results
• Generates a table that includes a list of the
  general questions and responses given, the
  average risk ranking for the risk category
  answered and a summary of the highest risks to
  lowest risks in descending order. It also
  provides the risk score entered, the question
  number the score relates to and a link to GEMI
  member case examples that may prove helpful to
  the user in identifying options for reducing
  risk.
• Save questionnaire data by creating a user name
  password
• Data is saved for 60 days
• May export and download into an MS Excel format

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Module 3 Case Examples and Reference Links

• Provides a database of case examples provided by
  GEMI members that have been used in a wide range
  of industry sectors to manage water wisely.
• Contains reference links that provide specific
  water-related information.
• Can be used to identify case examples that may
  apply to your facility with the intent to improve
  overall water resource management within the
  facility and in the community.
• Case Example Category Filtering
• Click on a Community Map Sector or Case Example
  Category to access the filtering option.
• Filter the links of interest for the desired
  result.

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Module 3 List of Case Example Categories in the
Database

• Advocacy Management Techniques
• Community Outreach
• Development Impact
• External Stakeholder Discussion Guidelines
• Global Awareness and Education
• High Purity Water Systems
• Housekeeping
• Innovative Water Reuse/Recycle Approaches
• Innovative Water Conservation Approaches
• NGO Interaction Guidance
• Pretreatment
• Waste Reduction/Minimization
• Wastewater Treatment Systems
• Water Access
• Water Management Operational Practices
• Water Quality Standards
• Water Quantity/Allocations
• Water Treatment Systems
• Watershed Management/Reclamation

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Module 3 Case Examples
The following GEMI Companies provided case
examples

• 3M
• Abbott Laboratories
• Anheuser-Busch Inc.
• Ashland Inc.
• The Coca-Cola Company
• ConAgra Foods
• The Dow Chemical Company
• DuPont
• Eastman Kodak Company
• GlaxoSmithKline

• Johnson Controls, Inc.
• Kraft Foods, Inc.
• Occidental Petroleum Corporation
• Pfizer, Inc
• The Procter and Gamble Company
• Roche
• Southern Company
• Texas Instruments Inc.
• Tyson Foods, Inc.

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Module 3 The Community Map

• The Community Map is segregated into three
  sectors Industry, Community and Natural
  Resources.
• The user can mouse over and click the sector of
  interest and access case examples that relate to
  that sector.

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Calculators Tab

• Fluid Flow Fundamentals
• Friction Loss Flow
• Pump Hydraulic Horsepower
• Water Balance Program
• Calculations
• Rules of Thumb
• Conversions

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Reference Tab

• Provides definitions of terms used in the
  document and web tool.
• Provides an overview of the following subjects
• General Water Rate Considerations
• Governance and Regulation Inputs
• Risk and Uncertainty
• Water Use and Sustainability

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Conclusion

• Water management is a complex issue for any
  organization. This tool, along with GEMIs other
  tools, is meant to assist users along their
  journey to use water sustainably. While the tool
  does not cover every detail needed, it covers
  many of the areas that GEMI member companies
  consider crucial.
• The user is encouraged to generate a water
  sustainability strategy for their operation, set
  goals and measure progress in meeting those
  goals.

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The Global EnvironmentalManagement Initiative
(GEMI)Exploring Pathways to a Sustainable
Enterprise SD PlannerA Sustainable Development
Planning ToolNovember 2004

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Definitions of Sustainable Development
Meeting the needs of the present without
compromising the ability of future generations to
meet their own needs. - World Commission on
Environment Development
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Challenges to Continued Growth
Environmental, health, and socio-economic
concerns and emerging trends associated with SD
pose challenges to continued growth.
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Business Response to SD
The business community has begun to appreciate
that addressing SD is an important element of
business strategy.

• Recognition of the link between SD and business
  value
• Bottom line value reduced operating cost and
  increased resource efficiency
• Top line value new market opportunities, leading
  to increased revenues and market share growth
• Understanding that long-term success involves
  managing the triple bottom line
• Economic prosperity
• Social-well being
• Environmental protection

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Business Response to SD
Heads of major corporations have recognized the
importance of SD to their businesses.
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Why SD PlannerTM?
The GEMI SD Work Group was formed to develop an
SD planning tool.

• Available tools needed to be expanded to meet
  GEMI member needs
• Business-focused tool to conduct a
  self-evaluation, assess opportunities, set goals,
  plan actions to meet goals, and evaluate progress
  against goals
• Flexible
• Customizable for each company or business unit
• SD Planner was designed to build upon existing
  resources
• Subject matter of various SD principles
• Self-evaluation methodologies
• SD Planner was developed as an automated tool

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SD PlannerTM is intended to help companies
understand the context of sustainable development
and choose a direction for taking action that
will deliver results.
Purpose of the SD PlannerTM
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The architecture of SD PlannerTM is based on a
five-step planning process.
SD PlannerTM Architecture
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SD PlannerTM is based on the premise that
sustainable development involves three
categories, often referred to as the triple
bottom line, each comprising several elements.
Self-Evaluation Elements
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SD PlannerTM lays out five Stages that companies
may take in moving towards their sustainable
development goals.
Self-Evaluation Stages
Stages of the Sustainable Development Pathway
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Each Stage comprises several business Practices.
Self-Evaluation Practices
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The Self-Evaluation Window is used to assess the
current status of a users company of business
unit.
Self-Evaluation Self-Evaluation Window
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The Gap Analysis function compares
self-evaluationresults against goals.
Gap Analysis
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Based on the gaps found, a user can generate a
list of proposed actions to provide ideas for the
creation of an action plan.
Action Planning
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SD PlannerTM Gateway
The Global Environmental Management Initiative
(GEMI)

• February 2007

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GEMIs Sustainable Development (SD) Work Group

• History
• 2000 Work Group formed and published original SD
  PlannerTM.
• 2003 Work Group reformed to develop SD PlannerTM
  Gateway.
• Objective To raise awareness of SD concepts,
  identify the business case for action on SD and
  serve as an on ramp the SD Planner and a
  web-enabled version of GEMIs SD Planner to
  facilitate its use over company Intranets.
• GEMI Co-Chairs
• Keith Miller, 3M
• Ted Reichelt, Intel
• Consultant DOMANI and Customer Paradigm

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Logic Model
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Installing the Software

• SD PlannerTM can be installed on
• Intranet
• Company Webserver
• External Webserver
• Software Requires
• php programming language
• mySQL database

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Last Word

• GEMI is a unique organization
• Business helping business
• From potato chips to computer chips we work
  common issues in GEMI
• Over 17 years, GEMI has grown and matured and
  stayed on the leading edge
• GEMI is now stronger than ever
• Looking ahead the mega trends will continue to
  stretch us
• Globalizationissues from everywhere
• The new scope Corporate Social Responsibility
  Sustainable Development
• Demands for greater transparency

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How to Contact GEMI

• 1155 15th Street, NW, Suite 500
• Washington, DC 20005
• USA
• Phone [phone]
• Fax [phone]
• Web site www.gemi.org
• email info_at_gemi.org