GEMI%20Benchmarking%20Survey%20on%20EHS%20Annual%20Reports - PowerPoint PPT Presentation

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GEMI%20Benchmarking%20Survey%20on%20EHS%20Annual%20Reports

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GEMI Benchmarking Survey on EHS Annual Reports Richard J. Guimond, Motorola, Inc. and George Nagle, Bristol-Myers Squibb Company Portland, Oregon June 28, 2001 – PowerPoint PPT presentation

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Title: GEMI%20Benchmarking%20Survey%20on%20EHS%20Annual%20Reports


1
GEMI Benchmarking Survey on EHS Annual Reports
  • Richard J. Guimond, Motorola, Inc.
  • and
  • George Nagle, Bristol-Myers Squibb Company
  • Portland, Oregon
  • June 28, 2001

2
1. Does your company prepare a periodic public
EHS Performance Report?
Yes 32 No 2
3
2. If Yes, how frequent?
Others Web site updated every 4 months
varies information provided on web site OSHA
safety performance/environmental measures updated
monthly.
4
3. How many years have you published a report?
Average number of years companies have issued
reports 5 years
5
4. Why do you publish a report?
  • Let employees know how the company is doing - 32
  • Share company information with stakeholders - 31
  • Provide transparency to government, NGOs, and
    neighbors - 26
  • Respond to stockholder pressures - 11
  • Provide an advantage over competitors - 11
  • Meet a customer request - 7
  • Others - 3

6
5. What is the length ( of pages) of your most
recent report?
Average number of pages in report 23 pages
7
6. Who are your audiences?
8
7. Does the report follow any specific format?
9
8. Does your report cover the following EHS
aspects?
  • EHS Performance Data - 32
  • EHS (or environmental) Policy - 31
  • EHS Awards - 30
  • EHS Compliance Record - 29
  • Environmental Management System - 27
  • EHS Goals - 25
  • Environmental Remediation - 23
  • Product Stewardship - 21
  • Stakeholder Involvement - 19
  • Employee Wellness - 14

10
8. Does your report cover the following EHS
aspects? (Contd)
  • Others
  • Initiatives, e.g. Champions for the Environment,
    Project XL
  • Sustainable development, EHS principles, safety,
    energy efficiency
  • EHS philanthropy and community projects
  • Governance, issues, UN Global Compact,
    experimental animal data, environmental impact
    (Eco-indicator-95) and benchmarking
  • Employee volunteer efforts, investment in
    community environmental projects, sustainable
    forestry indicators, environmental capital
    spending, environmental training data
  • CSR, climate change

11
9. Please identify major sections of information
in your report.
12
9. Please identify major sections of information
in your report. (contd)
  • Others
  • Climate change position statement
  • Environmental stewardship success stories
  • Product and packaging performance
  • HSE performance
  • Metrics initiatives expenditures awards SHE
    philosophy remediation, compliance
  • EHS values, policies, management system,
    performance, examples, timeline
  • Safety health, awards recognition, managing
    for excellence, environmental performance,
    stewardship community
  • SO2

13
9. Please identify major sections of information
in your report. (contd)
  • Others
  • Audits performed inspections and fines
    contractor safety environmental expenditures
    responsible care implementation fleet safety
  • Alcohol awareness also health and safety
    performance
  • We focus on our EHS programs and performance with
    case examples.
  • Message from Vice President of EHS, summary of
    performance on key metrics, recognition by
    external parties/agencies
  • Management systems, products, regulatory
    compliance, health safety performance, outreach
    programs
  • Management systems (social, economic and
    environmental), sustainability in action (case
    studies of various initiatives)

14
9. Please identify major sections of information
in your report. (contd)
  • Others
  • Environmental measures, safety measures,
    sustainable forestry measures, community outreach
    measures, corporate ESH, use of resources, and
    community awareness policies
  • EHS performance, organizations/staffing, quality
    of management, executive summary
  • Environmental performance, P2, emergency response

15
10. What metrics do you report on?
  • Recordable Injury/Illness Case Rate - 25
  • SARA Title III - 23
  • Haz Waste Generated - 23
  • Lost-day Case Rate - 22
  • Others - 21
  • Energy Usage - 21
  • Non-haz Waste Recycled - 20
  • Global warming gas emissions - 14
  • Water Usage - 13
  • VOM emissions - 13
  • EHS Expenditures - 12
  • NOX emissions - 11
  • Days from Work - 10
  • CO emissions - 9
  • HAP emissions - 7
  • PFC emissions - 5

16
10. What metrics do you report on? (contd)
  • Others
  • Electricity use Packaging use Violations
    Fines Reportable spills
  • PM SO2 Mercury
  • Social contributions, diversity
  • Packaging waste carcinogens and suspect
    carcinogens
  • VOC air emissions, manufacturing releases to
    water, solid waste, rate of waste generation,
    energy, greenhouse gas emissions, compliance
  • Violations
  • TRI emissions recycling NOVs fines paid
    emergency response drills, spills

17
10. What metrics do you report on? (contd)
  • Others
  • Dichloromethane emission, 30 hazardous chemical
    emissions, heavy metals in product, ISO 14001
    registrations
  • Remediation sites, citations, penalties,
    reportable incidents, oil produced water
    releases
  • MSDS, contractors, inspections, compliance
  • Financial highlights philanthropic
    contributions diversity data wastewater COD
    performance against internal standards (audit
    programs, certified site leaders) historically
    underutilized business (HUB) spending
    environmental liabilities
  • Compliance
  • HSE investments, HSE personnel, water emissions,
    heavy metals, air emissions, disposal method of
    hazardous waste

18
10. What metrics do you report on? (contd)
  • Others
  • Environmental and forestry wildlife training
    hours, completion of audit items, forestry
    verification audits, citizen complaints,
    recovered paper consumption, total reduced sulfur
    emissions, sulfur dioxide emissions, BOD/TSD
    discharges, Chairmans Safety award winners, OSHA
    VPP participation, safety inspections, time
    operating injury-free, forestry BMP
    implementation, AFPA sustainable forestry
    initiative metrics, volunteer hours, investment
    in community environmental projects
  • NOVs, reportable spills, fines paid
  • Sustainable development measures, economic
    performance, production, implementation of
    Responsible Care, total waste reduction, waste
    water, all chemical emissions, motor vehicle
    incidents, dioxin emissions, transportation
    incidents, public favorability scores at largest
    sites
  • Accident and non-accident releases, accidents per
    million ton mixes

19
11. How many different metrics to you report?
Average number of metrics used 14 metrics
20
12. For which specific metrics, do you have
corresponding goals that are included in your
report?
  • Recordable case rate, internal management system
    performance, biologically-diverse land
    preservation, energy use, water use, greenhouse
    gas emissions, off-site hazardous waste disposal,
    hazardous air emissions, hazardous water
    emissions, packaging usage, package recycled
    content
  • EPIs - set goals years and will report annually
    starting next year
  • Air carcinogens, energy, greenhouse gases,
    hazardous waste
  • Just 2 general goals of reducing waste/accidents
    while production increases
  • VOM emissions, HAP emissions, PFC emissions,
    hazardous waste generated, non-hazardous waste
    recycled, SARA releases, water usage, energy
    usage, and recordable injury/illness case rate
  • Carcinogens and suspect carcinogens, SARA
    releases and packaging weight

21
12. For which specific metrics, do you have
corresponding goals that are included in your
report? (contd)
  • Violations, lost work days
  • Responsible Care implementation, solvent
    emissions as a of use and serious II rate
  • Disabling injuries, DI incidence, total injuries
    inc rate, biogas production, water use, electric
    purchases, fuel, solid waste, hazardous waste
  • 5 of the 7 goals reported
  • OSHA recordable, OSHA restricted, OSHA days away
    from work, reportable quantity, wastewater
    noncompliance
  • The goal for all metrics is continuous
    improvement
  • Injury rates, recycling, VOCs
  • VOM emissions, Hazardous waste generated,
    non-hazardous waste recycled, energy usage,
    recordable injury/illness case rate, lost-day
    case rate

22
12. For which specific metrics, do you have
corresponding goals that are included in your
report? (contd)
  • Energy use, office paper, toxic chemical
    releases, packaging usage, hazardous waste
    generation, solid waste disposal
  • Energy, accident rates, reduction of halogenated
    VOCs
  • In 1994, we established 58 goals and have
    reported progress biennially. Having met most of
    those goals by 2000, we decided to replace goals
    with 34 measures of environmental and safety
    performance.
  • Air, water, solid waste, rate of waste generation
  • Waste management and recycling energy use,
    corporate-wide TRI reduction recordable injury
    reduction enforcement action (reduction/eliminati
    on)
  • Goals are not included for competitive reasons
  • Responsible Care implementation, energy use,
    waste reduction, chemical emission reduction,
    priority emission reduction, dioxin, process
    safety incidents, spills, transportation
    incidents, waste water, injury/illness rate,
    motor vehicle incidents

23
13. How do you publish your report?
24
14. Would you describe your current report
distribution as primarily web-based?
25
14. If yes, do you also produce a printed
summary report?
26
14. If yes, do you also use postcards and other
printed means to announce the availability of the
report?
27
15. Does the report address sustainable
development?
28
16. What are the percentages devoted to the
following?
29
17. How is your report prepared?
30
18. How many copies do you print?
Average number of reports printed 26,400 copies
31
19. How do you distribute the reports?
  • List of other stakeholders - 25
  • Corporate headquarters offices - 24
  • Senior management list - 23
  • Employee mailing list - 16
  • Govt mailing list - 15
  • NGO list - 16
  • Sales offices - 11
  • Customer mailing list - 12
  • Others - 11
  • General mailing list - 10
  • Manufacturing or service facilities - 4
  • Supplier list - 3

32
19. How do you distribute the reports? (contd)
  • Others
  • EHS contacts in other companies
  • Shareholders at annual shareholders meeting
    notice on companys annual report, manufacturing
    facilities as requested
  • Provide on web
  • Board of Directors
  • Published on web
  • Business unit CEOs and PR
  • MEDIAlist

33
20. How much staff time does it take to develop
the report?
  • Average time
  • 0.88 person years
  • Range (minimum to maximum)
  • 0.015 to 4.65 person years

34
20. How much staff time (by person years) does
it take to develop the report?
35
21. How much do you spend on your annual report
for preparation and development?
Average cost to prepare and develop report
86,801
36
22. How much do you spend on your annual report
for printing and distribution?
Average cost to distribute report 29,238
37
23. Do you evaluate the effectiveness of your
report?
38
23. If Yes, how do you evaluate the
effectiveness of your report?
39
24. If you use a comment card, how many
responses did you receive for your last report?
40
25. If you use a web-based card, how many
responses did you receive for your last report?
41
26. Do you plan to continue to publish your
report in the future?
42
27. What changes to you plan?
43
27. What changes do you plan? (contd)
  • Others
  • Make it even more web-based
  • Include health, safety, social and economic
    information going forward
  • Social commitment
  • Expand net content adding social responsibility
    beyond HS include global EHS performance data
    issue net based report with printed executive
    summary
  • Conform with GRI
  • Expand the social responsibility section.
  • Expand EHS and sustainability, especially social
    data in 2002
  • Sustainability metrics include some GRI aspects
  • Research, stewardship, data

44
27. What changes do you plan? (contd)
  • Others
  • To detail projects that are important and
    relevant at the time possibly add more metrics
  • We intend to cover more financial figures.
  • Expansion on internet
  • Move towards GRI format
  • Additional metrics
  • Contemplating moving more information to the web
    and reducing the size of the printed report
  • Expand data on social programs
  • EHS compliance EHS philanthropy more air,
    water, waste emissions
  • Incorporate new metrics based on our newly
    developed goals
  • Metrics, sustainability
  • Include more social metrics, move towards GRI,
    more on internet

45
28. What benefits do you believe the company has
obtained from publishing the report?
  • Improved EHS awareness and relations with
    employees - 29
  • Improved reputation with neighbors or NGOs - 26
  • Improved relations with government bodies - 26
  • Increased reputation or sales with customers - 25
  • Better understanding of EHS policies and
    performance from managers - 17
  • Reduced external criticism about the company - 13
  • Better understanding of companies EHS
    expectations of suppliers - 9
  • Others - 4

46
28. What benefits do you believe the company has
obtained from publishing the report? (contd)
  • Others
  • Used in recruiting and to give employees sense of
    companys concern and commitment on aspects
    addressed by the report.
  • Improve shareholder value.
  • It is anticipated that the report currently being
    prepared will result in improved understanding of
    the financial impacts of our EHS programs on the
    part of socially responsible investors.
  • Improved reputation with investors

47
29. Do you believe that the company obtains
sufficient benefits compared to the resources it
takes to publish the report?
48
30. What type of paper did you print your last
report on?
Average post consumer content 65 range was
10 to 100
49
31. What percentage of companies use soy inks?
50
32. What month did you release your most recent
report?
51
33. Did it include data and information for the
entire previous calendar or fiscal year?
52
34. Does your financial annual report contain a
reference to your EHS report or a section on EHS?
53
35. If yes, what type of information does it
include?
  • It references the report and our Companys
    Internet site. Also has standard SEC section and
    remediation liability.
  • Very brief reference to finding more information
    on the web.
  • Mostly cost information.
  • Report includes environmental information as
    presented in SEC reports.
  • Performance and achievement.
  • How to request the report.
  • Values, performance results, web site address
  • CEO statement from HSE report
  • The financial annual report includes a summary of
    significant EHS accomplishments, a table of
    environmental expenditures, and a discussion of
    remediation matters and references the
    availability of the EHS report.

54
35. If yes, what type of information does it
include? (contd)
  • Environmental spending (capital and operating
    maintenance), information on Superfund/remediation
    and major enforcement actions.
  • Summary of environmental efforts/performance.
  • Only the web address and required information on
    environmental liabilities.
  • Talks about the management system and supplier
    policy in discussion section. Also in
    Chairman/President letter discusses
    responsibility in terms of alcohol awareness,
    environmental protection, community support and
    charitable contributions.
  • Very brief information on major activities.
  • Safety, environmental liabilities and
    expenditures.
  • General statement
  • Specific operational report contained 2 pages on
    sustainable development and 2 pages on corporate
    citizenship and 2 pages on employees

55
35. If yes, what type of information does it
include? (contd)
  • In the investor information section, there are
    directions on how to request a hard copy of the
    EHS report and how to access it from the
    internet.
  • Some environmental information included as part
    of SEC requirements. Additional highlights
    related to EHS may also be included. No specific
    reference to the separate EHS report.
  • Information on how to obtain the EHS report.
  • Required environmental disclosure.
  • Reference
  • Remediation costs

56
36. Do you try to integrate the financial report
and the EHS report in any way?
57
36. Do you try to integrate the financial report
and the EHS report in any way?
  • Reference to each report in the other. Also
    information is linked electronically on the web
    under the general title of sustainability.
  • Want to going forward perhaps print and release
    at the same time.
  • Yes identical graphical layout.
  • We use some of the same numbers in each.
  • ESH risks included in the financial report
  • Yes, in the EHS report there is linkage to
    financial performance.
  • Yes, the EHS department provides information for
    the EHS discussion contained in the financial
    report.
  • Sustainability report summarizes the financial
    data
  • Include summary of these topics in annual report
    and publish at same time

58
37. What additional comments would you like to
share about your companys plans and experiences
on this topic?
  • Measuring the amount of action that EHS
    information is generating on the web.
  • We have a long way to go, but reviewing the
    reports of GEMI companies has been very helpful.
  • Our company is working with HR and Public Affairs
    group to include expanded social responsibility
    aspects into the public report. Weve also
    contracted with a marketing consultant for
    assistance.
  • We recognize the importance of reporting and plan
    to increase it during the next two years.
  • We are planning to utilize our companys web page
    more in the future, and increase awareness of the
    efforts globally including more information on
    emerging issues and global EHS activities.

59
37. What additional comments would you like to
share about your companys plans and experiences
on this topic? (contd)
  • Were learning and look forward to seeing the
    results of this survey.
  • The greatest value of the report seems to be in
    increasing the internal understanding of the
    companys EHS goals, programs, and performance.
  • Following GRI has been helpful in providing a
    more complete picture
  • We have 2 outside reviews of our report -
    verification by AD Little and review/report
    challenge by John Elkington.
  • Cost to produce online version of EHS report.
  • It always takes longer to do than you think it
    will. Plan in advance with many internal
    stakeholders.

60
37. What additional comments would you like to
share about your companys plans and experiences
on this topic? (contd)
  • Dont publish a report when you cant make the
    reports relevant to your readers you are only
    going to toot your horn about the good things the
    company has done and you do not want to discuss
    pitfalls, setbacks, and mistakes.

61
38. What additional comments should have been
asked on this topic?
  • How often do companies routinely update their EHS
    information on their web site? We do it every
    four months.
  • Whats your companys biggest challenge with
    regard to addressing social responsibility in an
    integrated manner with EHS?
  • Do we provide information that provides useful
    information to financial analysts to better
    understand how our EHS efforts provide value to
    the companys financial performance?
  • The benefit vs. effort hours is misleading we
    would track and use metrics without a corporate
    report.
  • How many of your reported metrics are solely for
    external reporting how many additional HSE
    metrics are used to run the business, yet are not
    reported externally - list (link to business
    strategy, performance).

62
38. Do you have any other comments on this
survey form or this survey process?
  • Great topic and very timely for us. This is an
    area that seems to be evolving.
  • I believe the survey did not assume HS was an
    aspect of social responsibility - which it is.
  • Good survey. Im anxious to see the results.
  • Process was fine.

63
39. What future topics should GEMI benchmark
which would have significant value for your
company?
  • Survey on investor relations.
  • NGOs/stakeholder strategy - how do you solicit
    input from various stakeholders, frequency of
    contact and communication, benefits, risks,
    lessons learned, initiated at corporate level vs.
    interaction at business unit or facility level.
  • Environmental/social responsibility accounting
    practices, associated data gathering methods,
    issues and IS strategies.
  • Emerging HSE issues.
  • Training professional EHS staff.
  • What drives EHS management - reduce costs reduce
    risk increase business value keep out of jail?
    Then ask other questions that help determine how
    much effort a company puts behind what they say
    they do. Do they walk the talk?

64
39. What future topics should GEMI benchmark
which would have significant value for your
company? (contd)
  • Would like to see some metrics on ISO 14001 and
    18001 e.g. certified, combined with ISO 9000,
    costs, time frame to roll out.
  • Benefits of producing an environmental or
    sustainability report and how to track ones
    success in this area.
  • How comparable are reports that follow standards
    such as GRI, PERI, or CERES from company to
    company within a similar industry or in diverse
    industries?
  • Is third-party verification in this area reliable
    based on the relatively recent emergence of these
    types of publications?
  • GHG inventory methodologies (assets
    excluded/included how to handle
    acquisitions/divestitures GHG reduction targets).
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