A Shell-Bechtel Venture
Sustainable Development as an Integrated Business Approach
Tools and Strategies
15 October 2004
Stephen Raab and Sean Kiernan
A Shell-Bechtel Venture
InterGen Overview
• Overview of InterGen’s international operations
• Challenges integrating Corporate Social Responsibility and Sustainable Development programs
• HSE and SD – the perfect marriage?
• Early history of InterGen’s SD programs
• Why do we need more?
• What will full integration of SD achieve?
• InterGen’s corporate SD Policy
• SD Global Standards structure
A Shell-Bechtel Venture
InterGen Overview
• SD/CSR indicators
• Application of SD tools
• InterGen SD Screening and Gap Analysis Tool
• SD gap analysis program implementation
• Asset specific SD plans
• Overview of corporate SD program
• Success factors of corporate SD program
• Please do not hesitate to call!
A Shell-Bechtel Venture
InterGen Global Portfolio
Colombia TermoEmcali 235MW China
Meizhou Wan 725MW
Turkey Adapazari 780MW Gebze 1,555MW Izmir 1,525MW
Egypt Sidi Krir 685MWEgypt Sidi Krir 685MW
Australia Millmerran 840MW Callide C 840MW
Australia Millmerran 840MW Callide C 840MW
North America
Wildflower (CA) 215MW
Cottonwood (TX) 1,235MW
Magnolia (MI) 900MW
Redbud (OK) 1,160MW
United Kingdom Rocksavage 780MW Coryton 795MW Spalding 795MW
United Kingdom Rocksavage 780MW Coryton 795MW Spalding 795MW
Netherlands Rinjmond Energie 795MW
Mexico
Bajio 600MW
La Rosita (Base) 765MW
La Rosita (Peaker ) 300MW
PhilippinesQuezon 440MW
SingaporeIsland Power 750MW
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Challenges of SD/CSR Program Integration
• Its not community/public relations• Programs supported by multiple functional
groups (Legal, BD, O&M, Public Affairs, HSE)• Short-sighted promises made in development
need to get carried into operations• Environmental conditions
– Technology (emission controls)
• Economic conditions– Merchant facility vs. fully contracted facility
• Social Conditions– Developed vs. Developing Countries
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HSE and Sustainable Development – The Perfect Marriage?
• Young company (less than 10 years old)• HSE program development had three-year lead
time• Proven three-tiered program structure
– Policies– Global Standards– Site Specific Programs
• Continuous improvement well established• Functional groups • SD benefits from proven and integrated HSE
structure
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Early History of InterGen’s SD Program • Philippines
– Social programs: education, health and nutrition program for nearby village
• Australia – Cultural sensitivity program for nearby
Aboriginal tribes
• Mexico – Green building design and technology for
nearby village
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Why do we need to do more?
• Lack of identification of SD risks/opportunities
• Inconsistency in project SD screening
• Varying focus on environmental, economic and social aspects
• Difficult to budget through life of project
• Overall lack of clarity – special program or the way we do business?
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What will full integration of SD achieve?
• Able to meet DJ GSI/London FTSE4Good criteria?
• Positive effect on financial performance?
• Reduction of environmental compliance risk?
• Reduction of environmental/social risk to business development (permitting phase)?
A Shell-Bechtel Venture
Integration of SD at InterGen• Corporate SD Policy
– Corporate Commitment – Integrated Management – Communications – Environmental Stewardship – Impact Mitigation – Use of Natural Resources – Economic Development – Employment – Community Development – Human Rights – Cultural Sensitivity
A Shell-Bechtel Venture
SD Global Standards Structure• InterGen Sustainable Development Model (ISDM)
InterGen Corporate Policy 1.17 - Sustainable Development
Environmental SocialEconomic
Environmental Stewardship SDM-HSE-0104
Impact Mitigation SDM-HSE-0105
Use of Natural Resources SDM-HSE-0106
Governance
Corporate Commitment SDM-HSE-0101
Integrated Management SDM-HSE-0102
Communications SDM-HSE-0103
Community Development SDM-HSE-0109
Human Rights SDM-HSE-0110
Cultural Sensitivity SDM-HSE-0111
Economic Development SDM-HSE-0107
EmploymentSDM-HSE-0108
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SD/CSR Indicators • Alignment with externally recognized indicators
via WEC ICSR Tool– GRI: Global Reporting Initiative Sustainability
Reporting Guidelines – BSR: Business for Social Responsibility “Introduction
to Corporate Social Responsibility”– Sullivan: Global Sullivan Principles– United Nations: Kofi Annan's United Nations Global
Compact Principles – OECD: Organization for Economic Cooperation and
Development Guidelines for Multinational Enterprises– SA8000: Council on Economic Priorities "Social
Accountability 8000 Standard"
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Application of SD Tools • Gap Analysis Tool
– Single tool supports a consistent approach worldwide
– Tool can be applied in all phases of power business (business development, engineering & design, construction and operations)
– Tool enables assets to assess, on an item-by-item basis, the project specific sustainable development risks and opportunities
– Gaps identified can be rolled into a prioritized Gap Implementation Plan
– A, B & C priorities reviewed and addressed
A Shell-Bechtel Venture
InterGen SD Screening & Gap Analysis Tool
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SD Gap Analysis Program Implementation
• Environmental– GHG Protocol
• Economic – Economic Impact Assessment
• Social– Community Needs Assessment Tool
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Asset Specific SD Plans
• Identification of annual SD risks/opportunities• Development of prioritized annual SD goals and
objectives• Goals placed into site specific objectives year-
to-year
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Overview of InterGen’s Corp SD Program
SD Infrastructure:• Corporate SD Policy
• SD Global Standards
• Alignment with International SD/CSR Indicators
Applying SD:
• SD Screening and Gap Analysis
• SD Gap Implementation
• Consistent Project SD Plans
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Success Factors of Corporate SD Program
• Corporate level screening of SD risk/opportunities – Corporate SD Policy
• Project/Asset level screening of SD risks/opportunities
• Development of prioritized overall Project SD implementation plan
• SD performance measurement, benchmarking, continuous improvement
• Ability to perform at DJ GSI and FTSE 4 Good level
A Shell-Bechtel Venture
Please do not hesitate to call! InterGen15 Wayside RoadBurlington, Massachusetts 01803 USA
• Stephen Raab – [email protected]– Office: (781) 993-3035– Mobile: (617) 331-8993
• Sean Kiernan– [email protected]– Office: (781) 993-3037– Mobile: (617) 799-2263