1 UNGC Module 5 THE UN GLOBAL COMPACT MODULE 5 REFERENCE SECTION Overview of Business and Environment Initiatives

2 UNGC Module 5 Overview of Business and Environment Initiatives Key Initiatives – Understanding the relationship –Global Principles/Codes of Practice –Management System Specifications –Guidelines on reporting & stakeholder engagement –Sectoral specific initiatives

3 UNGC Module 5 Overview of Business and Environment Initiatives Key Initiatives – Understanding the relationship –Global Principles/Codes of Practice –Management System Specifications –Guidelines on reporting & stakeholder engagement –Sectoral specific initiatives Global Principles / Codes of Practice The UN Global Compact The OECD Guidelines for Multinational Enterprises

4 UNGC Module 5 Overview of Business and Environment Initiatives Key Initiatives – Understanding the relationship –Global Principles/Codes of Practice –Management System Specifications –Guidelines on reporting & stakeholder engagement –Sectoral specific initiatives Management System Specifications ISO Environmental Management System EMAS SIGMA

5 UNGC Module 5 Overview of Business and Environment Initiatives Key Initiatives – Understanding the relationship –Global Principles/Codes of Practice –Management System Specifications –Guidelines on reporting & stakeholder engagement –Sectoral specific initiatives Guidelines on Reporting and Engagement GRI Sustainability Reporting Guidelines AccountAbility AA1000S

6 UNGC Module 5 Overview of Business and Environment Initiatives Key Initiatives – Understanding the relationship –Global Principles/Codes of Practice –Management System Specifications –Guidelines on reporting & stakeholder engagement –Sectoral specific initiatives Sectoral Specific Initiatives (examples) Forest Stewardship Council Marine Stewardship Council London PrinciplesEquator Principles UNEP Industry Sector InitiativesWBCSD Sector Initiatives

7 UNGC Module 5 Overview of Business and Environment Initiatives GLOBAL PRINCIPLES AND CODES –UN Global Compact Covered in detail throughout this Manual –OECD Guidelines for Multinational Enterprises First published in 1976, revised in 2000 Non-legally binding recommendations by governments to multinational enterprises operating in or from adhering countries Designed to ensure that multi-national organisations conduct their business in accordance with the policies of the countries within which they operate –ICC Business Charter on Sustainable Development Launched in 1991 – 16 principles for environmental management

8 UNGC Module 5 Overview of Business and Environment Initiatives MANAGEMENT SYSTEM SPECIFICATIONS An Introduction Environmental Management System specifications: Help companies to identify and prioritise their key environmental and/or social impacts in a structured and systematic manner Provide a framework for setting clear objectives and targets for managing these impacts Ensure that structured processes and procedures are in place for measuring and monitoring performance There are, however some criticisms….

9 UNGC Module 5 Overview of Business and Environment Initiatives MANAGEMENT SYSTEM SPECIFICATIONS Criticisms –Focus on incremental improvements: ‘doing what you do, right’ rather than ‘doing the right thing’ –May be rigid and bureaucratic –Procedurally complex - focus on document control –Frequently insufficient provision for stakeholder input –Efficacy depends on nature of accrediting body

10 UNGC Module 5 Overview of Business and Environment Initiatives MANAGEMENT SYSTEM SPECIFICATIONS Examples –ISO Released in the most widely used global EMS standard More than certificates in 118 countries (2002) –EMAS Non-regulatory, voluntary standard for EMS and auditing in the EU Differs from ISO in that it requires the publication of an externally verified statement of environmental performance –SIGMA Formed in 1992 as a partnership between government and think-tanks Aims to create a strategic management framework for sustainability

11 UNGC Module 5 Environmental Standard: The ISO Series MANAGEMENT SYSTEM SPECIFICATIONS Environmental Standards: The ISO series –Environmental management systems and communication: ISO 14001, ISO and ISO –Environmental auditing: ISO series and ISO –Environmental performance: ISO series –Environmental labels and declarations: ISO series –Life cycle assessment: ISO series –Environmental aspects: ISO Guide 64 and ISO/TR 14062

13 UNGC Module 5 Overview of Business and Environment Initiatives MANAGEMENT SYSTEM SPECIFICATIONS Key implications for a certified EMS (ISO 14001) To achieve certification in terms of ISO 14001, a company needs to: Assess the environmental impacts of its activities Develop an environmental policy Set objectives and targets Establish and maintain an environmental management programme Implement procedures for training Monitor, measure and communicate its performance Undertake environmental audits and management reviews

14 UNGC Module 5 Overview of Business and Environment Initiatives GUIDELINES ON REPORTING AND ENGAGEMENT –Global Reporting Initiative (GRI) Guidance on format and content of reports Assistance on how to normalise and verify data Comprehensive set of organisational, management system and performance parameters Encourages companies to set targets and commitments Encourages the adoption of a stakeholder engagement process –AA1000S Best practice standard for a stakeholder-based approach to social and ethical accounting, auditing and reporting Guides the establishment of an inclusive stakeholder engagement process aimed at identifying key issues and priorities

15 UNGC Module 5 Overview of Business and Environment Initiatives SECTORAL SPECIFIC INITIATIVES –Forest Stewardship Council NGO founded in 1993, which promotes responsible management of the world’s forests through forest certification and product labelling –Marine Stewardship Council Non-profit organisation set up in 1997 to promote sustainable fisheries and responsible fishing practices –Responsible Care First developed in Canada in 1995 to address public concerns about the manufacture, distribution and use of chemicals

16 UNGC Module 5 Overview of Business and Environment Initiatives SECTORAL SPECIFIC INITIATIVES –The FTSE4Good An investment tool for investors interested in socially responsible investment –The London Principles Voluntary code that proposes conditions under which financial market mechanisms can best promote the financing of sustainable development –The Equator Principles Voluntary set of guidelines for managing the social and environmental issues related to the financing of development projects, first adopted in June 2003 –The Greenhouse Gas Protocol Initiative Established in 1998 as a partnership between the WBCSD and the WRI to develop internationally-accepted accounting and reporting standards for greenhouse gas emissions from companies

17 UNGC Module 5 Overview of Business and Environment Initiatives SECTORAL SPECIFIC INITIATIVES Joint UNEP / Industry Sector Initiatives -Financial Institutions Initiative -Insurance Industry Initiative -Tour Operators Initiative for Sustainable Development -Global e-Sustainability Initiative -Mobility Forum -Automotive Industry Initiative -Advertising and Communication Initiative -Gold Industry Voluntary Code Initiative -Building and Construction Forum

18 UNGC Module 5 Overview of Business and Environment Initiatives SECTORAL SPECIFIC INITIATIVES UNIDO/UNEP National Cleaner Production Centres The basic services: -Raise awareness of the benefits and advantages of Cleaner Production -Demonstrate that Cleaner Production works through in-plant Cleaner Production assessments and demonstration projects -Train local experts and build local capacity for Cleaner Production -Help to obtain financing for Cleaner Production investments -Disseminate technical information -Provide policy advice to national and local governments NCPCs currently located in: Brazil, China, Costa Rica, Czech Republic, El Salvador, Ethiopia, Guatemala, Hungary, India, Kenya, Korea, Lebanon, Mexico, Morocco, Mozambique, Nicaragua, Slovak Republic, South Africa, Sri Lanka, Tanzania, Tunisia, Uganda, Vietnam and Zimbabwe.

19 UNGC Module 5 Overview of Business and Environment Initiatives BUSINESS ENVIRONMENT ORGANISATIONS –World Business Council for Sustainable Development Coalition of over 130 international companies Strives to encourages high standards of environmental management in business Conducts research and promotes collaboration Produces numerous reports and guides on issues ranging from biodiversity to eco-efficiency/metrics –The Management Institute for Environment and Business Works with business schools to integrate environmental and sustainability issues into the core curriculum Manages the BELL (Business Environment Leadership and Learning) programme

20 UNGC Module 5 Overview of Business and Environment Initiatives ACADEMIC / RESEARCH INSTITUTIONS –Forum for the Future Works in partnership with business, government leaders, higher education, the media and the voluntary sector (mostly in the UK) Finds economic, social, technological and environmental solutions to build a more sustainable society Publishes reports and position papers on sustainable development Publishes bi-monthly ‘Green Futures’ –The Natural Step Non profit international organisation dedicated to building an ecologically and economically sustainable society Offers a scientifically based framework to help organisations redesign their activities to become more sustainable Holds seminars, training courses, briefings and annual conferences

21 UNGC Module 5 Overview of Business and Environment Initiatives ACADEMIC / RESEARCH INSTITUTIONS –World Resources Institute Environmental research and policy organisation Establishment of partnerships that implement innovative, incentive-based solutions –Wuppertal Institute An interdisciplinary and practice-orientated institute Mediates between politics, economy, and the sciences in communicating the concept of sustainable development Develops and promotes concepts such as Factor Four and eco- efficiency

22 UNGC Module 5 Overview of Business and Environment Initiatives ENVIRONMENTAL NGOS –Greenpeace International –World Wide Fund for Nature (WWF) –Friends of the Earth International (FoEI) –Conservation International (CI) –Centre for International Environmental Law (CIEL)