Purpose, Progress and Next Steps Mercer ORC Corporate Social Responsibility and Sustainable Development (CSR-SD) Working Group Cathy Hansell, CCSR, MS, JD December, 2010

Mercer ORC CSR-SD Working Group Current Membership Coordinator: Cathy Hansell, Breakthrough Results Bob Araujo, Sikorsky Gregg Clark, Kimberly-Clark Luke Contos, TRW Mike Douglas, GM Ken Flechler, Pike Energy Solutions Elaine Harmon, Maersk, Inc Martin Healy, W. L. Gore & Associates, Inc. (Ad Hoc) Jeff Kleinfelter, Parsons Maureen Mazurek, Monsanto Joseph Van Houten, Johnson & Johnson ORC - Judi Freyman, Steve Newell, Dee Woodhull

How does Mercer ORC deliver value to its members in areas of CSR and Sustainable Development (CSR-SD)? Environmental, European and/or WOSH Networks have developed definitions, compiled company good practices and tools, and are working on important new sustainability and CSR programs, all of which are designed to improve the alignment and integration of SHE with CSR-SD. Specific key member needs in aligning and integrating SHE with CSR-SD areas were identified in 2006 and 2010 member surveys, and further defined in EBIF breakout discussions. Current StateFuture State Action Plan

Provide practical and effective information, good practices, tools, and contacts to member companies to enable them to equally and effectively incorporate SHE into their CSR-SD initiatives. Mercer ORC is recognized by its members as a premiere resource of information, tools and metrics for successfully incorporating SHE into CSR-SD programs. Current StateFuture State Action Plan How does Mercer ORC deliver value to its members in areas of CSR and Sustainable Development (CSR-SD)?

Mercer ORC CSR-SD Working Group was formed –To accelerate the identification, sharing, communication and development (as needed) of best practices in SHE linkages with CSR-SD initiatives Broad representation –Different industry segments –Various Mercer ORC networks Growing membership Current StateFuture State Action Plan How does Mercer ORC deliver value to its members in areas of CSR and Sustainable Development (CSR-SD)?

Mercer ORC CSR-SD Working Group Purpose Leverage “pockets of excellence” across entire practices of all networks –Identify and compile good practices and successes from all networks and volunteer member companies, –Provide forum for member information exchange and networking. Share and communicate above good practices, through a clearinghouse, leveraging the existing Mercer ORC web site, wiki and other means. As needed, develop new implementation “how to” tools and guidance. Communication & collaboration of CSR-SD activities across Mercer ORC networks Identify external resources and speakers to accelerate the effective role of SHE within CSR-SD programs, and to identify existing tools. Focus on S&H. Team and collaborate with other organizations (like ASSE) for mutual benefits. Current StateFuture State Action Plan How does Mercer ORC deliver value to its members in areas of CSR and Sustainable Development (CSR-SD)?

ADDITIONAL IDEAS and EXAMPLES Best Practices: “Sustainability Series” for Mercer ORC Networks by year-end 2011 –What ESH areas are included in member company CSR-SD strategies? –What are member companies doing to emphasize SHE within each of the triple bottom line? the social pillar-specifically S&H? the environmental pillar? the financial pillar? – Invite speakers from external organizations (like the Business for Social Responsibility) to talk about Supply Chain Initiatives and other activities, tools and metrics Analyze member company Sustainability (and similar topic) Reports for novel ideas and proven practices, as defined by EBIF action plan –How well does financial reporting indices (like the Global Reporting Initiative-GRI) emphasize social aspects such as safety and health ? Current StateFuture State Action Plan How does Mercer ORC deliver value to its members in areas of CSR and Sustainable Development (CSR-SD)?

Top member issues identified in CSR-SD, as related to linkages with SH(E) Process defined for tracking and communicating emerging CSR-SD issues and developments, focusing on linkages with SH(E), point person Judi Freyman First member sharing and networking event held-Oct 5, 2010 Initial design and launch of Mercer ORC CSR-SD website, including the sharing of : –Mercer ORC member company good practices in CSR-SD and SH(E) –Summaries of Mercer ORC Network CSR-SD events, activities and schedule –Summaries of latest developments and activities in CSR-SD and SH(E) –Contact information, hyperlinks or download of materials for all of the above Collaboration with ASSE Sustainability Task Force underway, focus on ASSE Sustainability SHE index, point person Steve Newell Compilation and coordination of Mercer ORC Network and Task Force activities Future opportunities of collaboration with AIHA Mercer ORC CSR-SD Working Group Progress

Sharing and Communicating Successes and Good Practices –Call to members for good practices and more working group members –Website Clearinghouse finalized and launched by 12/31/2010 Additional member networking and exchange events –Focus on specific identified tools and practices –Webinars and webcasts on selected topic of interest (4-6/year) Plan for collaboration with ASSE and AIHA for mutual benefits. Define and develop needed new “how to” tools and guidance. Identify existing, external sources. Mercer ORC CSR-SD Working Group Next Steps

Highlights from CSR-SD Working Group Session on Oct 5 Presentations on SH(E) linkages with CSR-SD from G. Clark at Kimberly-Clark, B. Karas at Coca Cola and L. Contos at TRW Group Discussions on the status of S&H and CSR-SD linkages, and challenges –Multiple opportunities throughout CSR-SD pillars and business processes –S&H has a later start as a focus area, than environment –S&H has less obvious and visible role and impact than environment –S&H has negative traditional metrics (injury rates) –S&H has less pressure from public, external stakeholders –S&H is considered a “given” in today’s businesses

Identified key actions to accomplish the above linkages and overcome challenges –Leadership commitment, understanding, motivation of role of S&H in CSR-SD –Education of all leaders, process owners, employees and S&H professionals. Focus on key owners of communications, public affairs and marketing –Integration of S&H for “win-win” into CSR-SD and business processes, plans, goals, metrics…in sustainability terms Supply chain, OE; new safer and greener processes, products and services Visible S&H activities like VPP Highlights from CSR-SD Working Group Session on Oct 5

Key take-aways...use a culture approach –Leadership commitment, understanding, motivation of role of S&H in CSR-SD Benefits of S&H, aligned with CSR-SD vision, goals, plans Long and short term goals, and metrics (leading and lagging) –Education of all leaders, process owners, employees and S&H. Broad perspective of role of S&H and goals of CSR-SD –Integration of S&H actions for “win-win” into CSR-SD and business processes, plans, goals, metrics…in sustainability terms. RIDE THE “GREEN WAVE” Highlights from CSR-SD Working Group Session on Oct 5

Needed Tools and Information –Strategy of linking S&H and CSR-SD: what to do, why, when and vision of success –Defining Leading Indicators –Strategic Communications To Employees To and from leaders –Compile Member Good Practices and Successes in the above areas –FROM 2010 SURVEY: Stakeholders: identification, defining, assessing and ranking needs and incorporating into CSR-SD/business plans Highlights from CSR-SD Working Group Session on Oct 5

ASSE and Mercer ORC Sustainability Collaboration Current ASSE initiatives: 1.ASSE Sustainability and the Safety Profession Task Force - ongoing 2.ASSE proposal to create a safety and health sustainability center - possible

1. ASSE’s Proposed Sustainability Index: Six Essential Elements of Safety and Health Sustainability Values and Beliefs Safety and Health Social Responsibility Commitment Codes of Business Conduct Operational Excellence Integrated and Effective Safety and Health Management System Professional Safety and Health Competencies Oversight and Transparency Executive Leadership Oversight of Safety and Health Transparent Reporting of Key Safety and Health Performance Indicators

2. ASSE Exploring the Idea of Establishing a New Safety and Health Sustainability Center Objectives: 1.Provide ASSE and the safety profession a strong voice in corporate social responsibility /sustainability policy setting 2.Educate the business community on the importance of safety as part of good corporate governance and corporate social responsibility/sustainability.  The Mercer ORC CSR-SD Working Group would support/leverage the work and resources of the ASSE center