1 UNGC Module 4 – Session 1 THE UN GLOBAL COMPACT MODULE 4 FROM PRINCIPLE TO PRACTICE Session 1: Steps to Sustainability using the Global Compact Performance Model

2 UNGC Module 4 – Session 1 To participate in the Global Compact a company typically: –Sends a letter to the UN Secretary General –Publicly advocates the Global Compact –Posts material on the Global Compact website –Publishes an annual report –Joins with the UN in partnership projects –Sets in motion changes to its business operations The final point above is the most important, and is the focus of the rest of this session: moving from principle to practice Note: Updated details on the requirements for participating in the Global Compact are available from the Global Compact website From Principle to Practice: The GC Performance Model

3 UNGC Module 4 – Session 1 From Principle to Practice The Deming Cycle Plan strategy “Vision” Implement “Enablers” Check progress “Results” Set goals “Reporting” Note: the text in italics refers to the corresponding section of the UNGC performance model introduced in the next slide

4 UNGC Module 4 – Session 1 From Principle to Practice: The GC Performance Model Four management elements 1) VISION 2) ENABLERS 3) RESULTS 4) REPORTING

5 UNGC Module 4 – Session 1 GETTING THERE - Review the three GC environmental principles - Analyse global economic, social and environmental trends - Factor 4/Factor 10 and Eco-Efficiency studies - SIGMA Management Framework - Wuppertal Institute’s Compass - Select Environmental Management Strategy (Module 4-2) - Refer to UNEP Cleaner Production Declaration - Employee and stakeholder dialogue - Scenario planning From Principle to Practice: The GC Performance Model Case studies: - RMC Group – used the SIGMA Management Framework ( - European Aluminium Industry – used Compass to detect and facilitate sector-wide sustainability improvements ( Codes and standards Management tools Communication and Partnership

6 UNGC Module 4 – Session 1 From Principle to Practice: The GC Performance Model Enablers (1) GETTING THERE - Translate principles into practical language - Draw on the examples contained in the GC Learning Forum - Consider the work contained in the WRI’s “Tomorrow’s Markets” - Form top management committee - Hold listening and dialogue sessions - Implement environmental management system (Module 4-2) - Apply Business Case Matrix - Apply Corporate Responsibility Assessment Tool Case studies: Natura, Brazil – developing a business case ( Unilever – demonstrating role of leadership competence in meeting sustainability targets ( Codes and standards Management tools Communication and partnership

7 UNGC Module 4 – Session 1 GETTING THERE - In-house learning sessions - Draw on examples from GC Learning Forum - Experiential learning - Engagement in community work - Environmental training - Internal communication - Environmental performance indicators (Module 4-2) - Environmental training and communication (Module 4-2) - Chronos e-learning tutorial - EMS training resource kit - Environmental Management Navigator package for SMEs Case studies No 4-4 Du Pont No 4-5 Bovince Ltd From Principle to Practice: The GC Performance Model Enablers (2) Codes and standards Management tools

8 UNGC Module 4 – Session 1 GETTING THERE -Use International Declaration on Cleaner Production -Refer to the Corporate Social Responsibility: A Guide to Better Business Practices, BSR -Refer to the Corporate Responsibility Code Book - Environmental assessment & auditing tools (Module 4-2) - Select environmental management strategy (Module 4-2) - Life Cycle Management (Module 4-2) - Resource flow audits - Environmental reviews - Partnerships: scientific groups, academia, NGOs, suppliers, etc - Make use of communication tools (Module 4-2) Case studies No 4-4: Du Pont No 4-5: Bovince Ltd From Principle to Practice: The GC Performance Model Enablers (3) Codes and standards Management tools Communication and partnership

9 UNGC Module 4 – Session 1 GETTING THERE Refer to: - Integrated Environmental and Economic Accounting: An Operational Manual, - Contemporary Environmental Accounting: Issues, Concepts and Practices - Test budgets against policies/action plans - Assign responsibilities to executive management as part of environmental management system (Module 4-2) - Use environmental assessment tools (Module 4-2) - Use the SIGMA projects accounting tool - Use the CARE tool - Undertake risk and opportunity assessment Case studies Wessex Water Services Ltd. – used the Sigma Project Accounting Tool to develop its sustainability accounts ( Muckenhaupt & Nusselt – participated in the CARE project in order to develop an EMS ( From Principle to Practice: The GC Performance Model Enablers (4) Codes and standards Management tools Communication and partnership

10 UNGC Module 4 – Session 1 GETTING THERE - ISO EMS (see Module 4-2) - SAFE: Sustainability Assessment for Small and Medium- sized Enterprises - Cleaner Production assessment (Module 4-2) - Product stewardship activities - Environmental Impact Assessment (Module 4-2) - Environmental Risk Assessment (Module 4-2) - Life-Cycle Assessment (Module 4-2) - Design for Environment & Eco-design - Environmental auditing (Module 4-2) - Sustainable Production & Consumption - Product-services systems Case studies Toyota-Global (no. 3-11); Re-Define (no. 3-15); Nokia (no. 3-13) - product life-cycle analysis Moroccan dyeing industry – eco-efficiency analysis for each product’s life cycle From Principle to Practice: The GC Performance Model Enablers (5) Management tools

11 UNGC Module 4 – Session 1 GETTING THERE - Sector wide codes of practices - Environmental monitoring and auditing tools (Module 4-2) - Environmental management tools (Module 4-2) - Product life cycle stewardship - Supply chain management standards - Product labelling – e.g. Eco-labels - Environmental communication tools (Module 4-2) - Form stakeholder advisory committee Case studies: British Telecom – CSR and customer satisfaction From Principle to Practice: The GC Performance Model Results (1) Codes and standards Management tools Communication and partnership

12 UNGC Module 4 – Session 1 GETTING THERE - Internal training and communication e.g. through a structured EMS (Module 4-2) - Employee surveys - Employee reward schemes for meeting environmental performance targets From Principle to Practice: The GC Performance Model Results (2) Communication and partnership

13 UNGC Module 4 – Session 1 GETTING THERE - Internal training and communication (Module 4-2) - Site community opinion surveys - Local and corporate advisory panels - Product Stewardship - Extended Producer Responsibility - Sustainable Production & Consumption - Environmental management tools (Module 4-2) - ETHOS Indicators - UNEP APPEL (Module 4-2) - GRI Sustainability Reporting Guidelines Case studies Petrobras, Brazil – implementation of APPEL From Principle to Practice: The GC Performance Model Results (3) Management tools Communication and partnership

14 UNGC Module 4 – Session 1 GETTING THERE - Manual on eco-efficiency indicators - Environmental reporting tools (Module 4-2) - GRI Sustainability Reporting Guidelines - Accountability 1000 (AA1000) Framework - The Efficient Entrepreneur Calendar Case studies Vancity – use of AccountAbility 1000 (AA1000) Framework From Principle to Practice: The GC Performance Model Reporting Codes and standards Management tools

15 UNGC Module 4 – Session 1 The Global Compact’s engagement opportunities: -Policy dialogue -Learning -Local Networks -Partnership Projects From Principle to Practice: The GC Performance Model

16 UNGC Module 4 – Session 1 The Global Compact’s Learning Forum: -Examples of corporate experiences in implementing the ten principles of the Global Compact -Case studies of corporate experiences -Description of partnership projects -Research matching database -Learning Forum publications -Tools development From Principle to Practice: The GC Performance Model

17 UNGC Module 4 – Session 1 The UN Global Compact Learning Forum