SUSTAINABILITY AND THE BOTTOM LINE

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SUSTAINABILITY AND THE BOTTOM LINE Presentation
to The RMLA Auckland Branch 27th June 2002
Rodger Spiller Executive Director NZBCSD
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Providing business leadership as a catalyst for
change toward sustainable development, and
promoting eco-efficiency, innovation and
responsible entrepreneurship.
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Sustainable Development Is about ensuring a
better quality of life for everyone, now and for
generations to come.

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• What is SD?
• SD is forms of progress that meet the needs of
  the present without compromising the ability of
  future generations to meet their needs.

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• SD encompasses three linked elements
• Economic/Profit
• Environmental/Planet
• Social/People

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Leadership Forum
February 2000
Sustainable New Zealand Scenario
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Sustainable New Zealand Scenario
ECONOMY
Knowledge-intensive Responsive Niche-focused Clust
ered
Kiwis are confident entrepreneurial
Wealth is created sustainably
SOCIETY
ENVIRONMENT
Proactive Educated Networked Diverse Caring
Stretch goals for Waste reduction Air and water
quality Energy efficiency Biodiversity Restoration
Everyone walks the talk
Leadership Strategic Framework Goals
Indicators Metrics
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Our Aims

• Business leadership
• Demonstrate best practice
• Policy development
• Global outreach

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Our Members

• 3M New Zealand Ltd
• BP Oil NZ Ltd
• City Care Ltd
• Deloitte Touche Tohmatsu
• Fletcher Building Ltd
• Fonterra Co-operative Group Limited
• Hubbard Foods Ltd
• Interface Agencies
• Landcare Research
• Meridian Energy
• Mighty River Power Ltd
• Milburn New Zealand Ltd
• Minter Ellison Rudd Watts
• Money Matters NZ Ltd
• Morel Co
• Natural Gas Corporation
• NIWA
• Palliser Estate Wines of Martinborough Ltd
• Port of Tauranga Ltd

• PricewaterhouseCoopers
• Richmond Ltd
• Sanford Ltd
• Shell New Zealand Ltd
• Simpson Grierson
• Telecom New Zealand Ltd
• The Boston Consulting Group
• The Living Earth Company
• The Warehouse Group Ltd
• Toyota NZ Ltd
• Transfield Services (NZ) Limited
• Transpower
• Trust Power
• Urgent Couriers Ltd
• URS - NZ Ltd
• Waimangu Volcanic Valley
• Waste Management N.Z. Ltd
• Watercare Services Ltd

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• "Our company is focussed on the highest possible
  standards of performance. By that, we don't just
  mean financial performance. We also mean
  environmental and social performance. We see no
  contradiction between these three measures of
  performance. They are entirely complementary -
  and the companies that recognise that first, will
  deliver themselves a significant competitive
  advantage."
• Craig Norgate, CEO, Fonterra
• 8 April 2002

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THE REGIONAL NETWORK - BCSDs and Partner
Organizations -
BCSD North Sea Region
Vernadsky Foundation Russia
BCSD Poland
EPE France
CGLI USA/Canada
BCSD Czech Republic
BCSD Mongolia
FE Spain
BCSD Austria
BCSD Croatia
FFA Spain
BCSD Latin America
CII India
BCSD Gulf of Mexico
APEQUE Algeria
BCSD Mexico
BCSD Taiwan
BCSD Honduras
BCSD Thailand
BCSD El Salvador
PBE Philippines
BCSD Venezuela
BCSD Malaysia
BCSD Costa Rica
BCSD Colombia
BCSD Indonesia
BCSD Brazil
EFZ Zimbabwe
WASIG W.Australia
BCA Australia
IEF South Africa
BCSD Argentina
BCSD New Zealand
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DEDICATED TO MAKING A DIFFERENCE
Examples of WBCSD Projects
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DEDICATED TO MAKING A DIFFERENCE
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Current NZBCSD Projects

• Sustainable Development Reporting
• Climate Change
• Zero Waste
• Sustainable Consumption
• Successful Schools
• Youth Employment

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NZBCSD SDR Project
Objective

• Lead NZ business into Sustainable Development
  Reporting (SDR)

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• What is Sustainable Development Reporting?
• A clear picture of company SD values and
  principles
• A vision of how the company approaches sustainble
  development
• A transparent picture of performance information
  on enconomic, environmental and social dimensions
• The management response to performance the
  commitment to improvement
• A description of the companys contribution to
  the sustainable development of society
• One part of an overall management system designed
  to deliver a companys strategic objectives
  consistent with sustainable development
• The information on a companys SD values,
  objectives and aspirations through a public
  commitment to continuous improvement on a
  timeline with clear targets.

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NZBCSD SDR Project

• Concise NZ Industry guide on the why and how
  for SDR
• All member companies report on progress towards
  their commitment to produce an SDR within 3 years
  of becoming a member
• Website area including industry guide, reporting
  facility and other learning by sharing tools.

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Overview of the Guide

• Section One - Why Report The Business Case for
  SDR
• Section Two - How to Report The SDR Process
• Section Three - Examples of the Process NZBCSD
  Case Studies
• Case studies of businesses that had begun the SDR
  Process
• Sanford
• BP NZ
• Hubbard Foods
• The Warehouse
• Case studies of businesses with no experience in
  the SDR process
• City Care
• Interface Agencies
• Telecom
• Urgent Couriers

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Why Report?
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Increased Financial Return and Reduced Risk for
Shareholders

• It hit us between the eyes when those two
  incidents (disposal of the Brent Spar oil
  platform and the execution of Ken Saro Wiwa in
  Nigeria) to which Shell was linked became
  front-page news around the world. Both were
  glaring examples of the need to communicate
  clearly with all audiences. In both cases we
  simply didnt. We had developed blind spots for
  emerging stakeholders and important issues.
  Simply we had lost the ability to listen. And to
  act effectively on our principles and values.
• Ed Johnson, Chairman, Shell New Zealand.

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• "Reasons for considering SDR include competitive
  advantage, enhancing reputation, shareholder
  value, improving sustainability culture. These
  include aspects of risk management.
• "Warts and all" is an issue, but the sooner an
  organisation is faced with reporting, the sooner
  it is faced with fixing them up. Warts and all
  increases creditability - we have realised there
  is an issue(s) we do not like it and so we are
  actually going to do something about it - but
  without painting the organisation "lily white".
  If going to do SDR credibly, organisations will
  have warts. If there are big warts the sooner
  these are faced up to the better."
• "We have received positive payback for our
  investment in SDR and implementing ISO 14000 in
  the parent company and all subsidiary companies."
  
• Eric Barratt, Group Managing Director, Sanford

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Attracting and Retaining Employees

• "The very strong company-wide staff support
  surprised us. For many the SDR process is a
  tangible benefit in working for Meridian."
• Meridian Energy

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Improving Customer Sales and Loyalty

• "A necessary process to measure company against
  company and thus ensure a level playing field".
• Rob Fenwick, Managing Director, Living Earth

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Growing Supplier Commitment
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• Because it is important to me and the
  credibility of my company, I am trying to ensure
  that our first Triple Bottom Line report does not
  preach and has information that gives a true
  snapshot of where we really are at in regards to
  sustainability. I also want our report to clearly
  state that this is a first step, and be sure that
  our stakeholders understand that we are asking
  them to help us become sustainable and hold us to
  account by setting benchmarks that we will be
  measured by in future years. Small business needs
  to understand that this is a journey, not a
  destination.
• Robb Donze, CEO, Interface Agencies.

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Contributing to Environmental Sustainability

• We simply realise that the environment is our
  most important asset. Everything we do must aim
  to protect that asset. If we tamper with the
  soil or alter the climate we dont have a
  business.
• Richard Riddiford, CEO,
• Palliser Estate Wines of Martinborough

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Strengthening Community Relations

• The government's efforts internationally are
  matched here in New Zealand ... by the emergence
  of the New Zealand Business Council for
  Sustainable Development which is also committed
  to promotion of the triple bottom line to ensure
  that environmental and social considerations are
  weighed in decision making alongside the economic
  considerations In the private sector, here and
  abroad, leading edge firms are finding that
  social and environmental responsibility goes hand
  in hand with brand image and market positioning
  in the twenty-first century.
• Prime Minister, Rt Hon Helen Clark.

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For more information visit our websites
nzbcsd.org.nz
wbcsd.org