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SUSTAINABILITY AND THE BOTTOM LINE
Presentation to The RMLA Auckland Branch
27th June 2002
Rodger SpillerExecutive Director NZBCSD
Providing business leadership as a catalyst for change toward sustainable development, and
promoting eco-efficiency, innovation and responsible entrepreneurship.
Sustainable Development
Is about ensuring a better quality of life for everyone, now and for generations to come.
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.
SD encompasses three linked elements:
• Economic/Profit• Environmental/Planet• Social/People
February 2000
ForEver
ECONOMY
ENVIRONMENT SOCIETY
Knowledge-intensive
Responsive
Niche-focused
Clustered
Proactive
Educated
Networked
Diverse
Caring
Stretch goals for:
Waste reduction
Air and water quality
Energy efficiency
Biodiversity
Restoration
Everyone walks the talk
Wealth is created sustainably
Kiwis are confident & entrepreneurial
Sustainable New Zealand Scenario
Our Aims
• Business leadership
• Demonstrate best practice
• Policy development
• Global outreach
Our Members3M New Zealand LtdBP Oil NZ LtdCity Care LtdDeloitte Touche TohmatsuFletcher Building LtdFonterra Co-operative Group LimitedHubbard Foods LtdInterface AgenciesLandcare ResearchMeridian EnergyMighty River Power LtdMilburn New Zealand LtdMinter Ellison Rudd WattsMoney Matters NZ LtdMorel & CoNatural Gas CorporationNIWAPalliser Estate Wines of Martinborough LtdPort 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
"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, Fonterra8 April 2002
BCSD Gulf of Mexico
BCSD Latin America
BCSD Mexico
BCSD Argentina
BCSD Venezuela
BCSD Colombia
BCSD Costa Rica
BCSD CroatiaBCSD Croatia
BCSD Czech RepublicBCSD Czech Republic
BCSD El Salvador
BCSD Honduras
BCSD Indonesia
BCSD MalaysiaPBE Philippines
IEF South Africa
EFZ Zimbabwe
BCSD Thailand
CII India
BCSD PolandBCSD PolandVernadsky Foundation RussiaVernadsky Foundation Russia
APEQUE Algeria
BCSD Brazil
THE REGIONAL NETWORK - BCSDs and Partner Organizations -
FE Spain
FFA Spain
EPE France
BCSD Austria
BCSD NorthSea Region
CGLI USA/Canada
WASIGW.Australia
BCA Australia
BCSD New Zealand
BCSD Mongolia
BCSD Taiwan
Examples of WBCSD Projects
DEDICATED TO MAKING A DIFFERENCE
DEDICATED TO MAKING A DIFFERENCE
• Sustainable Development Reporting
• Climate Change
• Zero Waste
• Sustainable Consumption
• Successful Schools
• Youth Employment
Current NZBCSD Projects
NZBCSD SDR Project
Lead NZ business into Sustainable Development Reporting (SDR)
Objective:
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 company’s contribution to the sustainable
development of society• One part of an overall management system designed to deliver a
company’s strategic objectives consistent with sustainable development• The information on a company’s SD values, objectives and aspirations
through a public commitment to continuous improvement on a timeline with clear targets.
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.
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 ProcessSanfordBP NZHubbard FoodsThe Warehouse
Case studies of businesses with no experience in the SDR processCity CareInterface AgenciesTelecomUrgent Couriers
Why Report?
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 didn’t. 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.
"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
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
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
Growing Supplier Commitment
“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.
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 don’t have a business”.
Richard Riddiford, CEO,Palliser Estate Wines of Martinborough
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.
For more information visit our websites
nzbcsd.org.nz
wbcsd.org
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