CSR at government level in Denmark By Victor Kjær, Deputy Director General, Danish Business Authority April 23rd, 2012

Agenda  CSR in Denmark on business level  The policy approach to CSR in Denmark  The Danish national action plan for CSR : Responsible Growth  How have Danish companies benefited of stategic CSR (2 cases)

Facts & figures - CSR in Danish companies 77 % work with CSR 65 % do not have a CSR policy and/or strategy 55 % do not communicate on CSR 56 % experience barriers for working with CSR. Most common barriers are lack of time and resources as well as lack of strategic prioritisation 31 % do not have knowledge about internal benefits and 48 % do not have knowledge about external benefits of working with CSR 64 % have not obtained financial returns from their CSR activities Less than 25% are addressing human rights issues Less than 10% are engaging in multi-stakeholder dialogue (Source: Danish Government Centre for CSR, February 2010)

4 Is there a business case? (Supply push) Goldman Sachs study (2005): Companies applying strategic CSR outperfom competition by: Up to 25% better than market in general. Up to 72% better than branch competitors. McKinsey / Carbon Trust (2008): About risc and the challenges of climate change: Companies in certain sector risc loosing up to 65% of their market value (e.g. aluminium og automobiles). Companies in other sector may increase their market value by up to 85% (e.g. construction industry). Harvard meta-analysis (Joshua D. Margolis et.al., 2008): Posistive correlation between Corporate Social Performance and Financial Performance (modest but statistically significant). Equally important: No negativ effect on profits from CSR).

CSR in the Danish Ministry of Business and Growth Danish Business Authority Ministry of Business and Growth Division for Business Control and Legislation: CSR team Mediation and Grievance Institution for Responsible Business Conduct Danish Council for CSR

Milestones (selected)  CSR Compass: IT tool ( )  People and Profit: Awareness raising and training project ( )  First Danish Action Plan for CSR,  Danish Council for CSR (2009-)  Mandatory reporting on CSR (2009)  New Danish Action Plan for CSR, : Responsible Growth

What we are doing Promoting CSR (tools, guidelines, conferences, campaigns etc.) Coordination of governmental initiatives Dialogue with stakeholders (EU, companies, organisations) Preparation of bills for Parliament Secretariat for the Danish Council for CSR

Tools: The CSR Compass

Tools: The Climate Compass

Branding: DanishResponsibility.dk

Legislation: Mandatory reporting on CSR The largest 1,100 companies are required to report on their policies on corporate social responsibility in their annual report – or state that they do not have CSR policies: 1. The company’s CSR policies, including any standards, guidelines or principles for social responsibility it employs, 2. How the company translates its CSR policies into action, including any systems or procedures used, 3. The company's evaluation of what has been achieved through CSR initiatives during the financial year, and any expectations it has regarding future initiatives.

Legislation: Mandatory reporting on CSR  2009: 89 % provide information on CSR. 43% report on CSR for the first time.  2010: 87 % provide information on CSR. 7% report on CSR for the first time.

13 Three stages of CSR ComplianceMedium to High Strategic and Operational Impact Fundamental Strategic and Operational Impact Innovation Sustainable Business Models Provide funding and skills Little Strategic or Operational Impact Business-driven/strategic CSR CSR as Value Creation CSR as Risk Management CSR as Corporate Philanthropy

What this is about…

Danish Action Plan for CSR - Responsible Growth Launched March 2012 by Minister of Business and Growth Ole Sohn Focussing on creation of shared value for businesses and society through innovative partnerships between private sector, public sector, and civil society - e.g. green business models, inclusive labour market, ethical trade, and responsible public procurement.

Focus areas in Responsible Growth 1. Respect for international principles 2. Responsible growth through partnerships 3. Increased transparency 4. Using the public sector to promote an good framework for responsible growth

1. Respect for international principles Mediation and Grievance Institution for Responsible Business Conduct International conference on Business and Human Rights – Principles to practice (May 7th- 8th, 2012) Training and guidance in responsible business conduct

2. Responsible growth through partnerships Partnerships for Responsible Growth e.g. by strengthening of SMEs’ work with strategic CSR (workshops, training etc.) in partnership with local authorities and business associations Promotion of responsible growth through Danish business activities in developing countries New green business models

3. Increased transparency Reporting on human rights and climate Country by country reporting in the extractive industries and the logging of primary forests CSR Awards Promotion of sustainable consumption

4. Using the public sector to promote an good framework for responsible growth Promotion of responsible conduct within the public sector Guidelines for responsible public procurement Strategy for intelligent public procurement Promotion of marginalised groups’ access to the labour market

Case 1: Slow steaming by Maersk Line  The big Danish shipping company Maersk Line are reducing the consumption of bunker fuel to 10.7 million tonnes in 2010, down from 13.8 million in 2007, by slow steaming.  ture=plcp&context=C49694daVDvjVQa1PpcFO1479- e4TR2doox0Te__9I-lrQND_FEE8%3D ture=plcp&context=C49694daVDvjVQa1PpcFO1479- e4TR2doox0Te__9I-lrQND_FEE8%3D

Case 2: CSR in toy industry  The worst thing to a European toy producer would be to discover that suppliers are using child labour.  The Danish toy company Top Toy are working with suppliers to ensure good working conditions and safe products.  eature=plcp&context=C4959e65VDvjVQa1PpcFO147 9-e4TR2cIUxdlUyp3DnCxZokQelNg%3D eature=plcp&context=C4959e65VDvjVQa1PpcFO147 9-e4TR2cIUxdlUyp3DnCxZokQelNg%3D

Thank you for your time Victor Kjær Info and tools: Contact: