FM IN THE DEVELOPING WORLD Environmental and Social Management of our products and services

Agenda Defining sustainable development for Facilities Management Impacts on the Developing World What can be done to manage the risks What you can do to support and implement in your workplace? Questions

A concept linked to how organisations make their profits SD refers to the triple bottom line: EnvironmentalEconomicSocial  workplace usage  employee retention  labour rights  human rights  wages  wages and benefits  labour productivity  job creation  community support  contractor management  Activity, product & service impacts on air, land, water, biodiversity and human health What is Sustainable Development

1997 Government publishes a sustainable strategy Launch of Dow Jones Sustainability Index UK pension funds required to disclose their investment principles UK Climate Change Levy EU Strategy for sustainable development published EU CSR framework Launch of FTSE4GOOD Rio Earth Summit Kyoto Protocol adopted GRI launches first sustainability reporting guidelines EU emissions trading scheme WEEE Directive Landfill Regulations The Increasing Pace of SD

Political, social and economic pressure will change the business environment in which companies function Companies needs to be in a position to deal with these changes to:  Understand and manage environmental and social business risks  Identify and adapt business strategy to mitigate these risks  Identify and exploit commercial opportunities What does this mean?

Impacts of FM in the Developing World What impacts does the FM industry have: growth of multi-national organisations into developing countries increased economies derived from aid and business one-off or short term projects cheap labour products manufactured or grown

Growth of Organisations The UN estimates that there are over 60,000 multi- national companies with some 800,000 foreign affiliates. greater capital flow into developing nations than from development assistance marked growth in economy and earnings gap increased dispersement of business through IT advances into many more ‘community’ based activities management of local cultures, requirements and beliefs becoming an enabler to perform business

Project Support There has been a major increase in the number and size of infrastructure and CDM projects. greater funding provision from governments, NGO’s and financial institutions to provide ‘partnership’ project support encouragement by developing countries to expand market activities offsetting of environmental practices through e.g. carbon trading projects, afforestation use of distribution networks, knowledge and commercial acumen

Procurement Strategies Much of what we procure within the facilities environment may originate from developing countries. materials from clothing; extraction of raw materials such as bauxite (aluminium), copper; furniture cheaper labour and assembly costs reduce overheads and sales cost abundant labour source means manual activity predominates for assembly and disassembly of products

Positive Negative  Employee retention and job creation  Workplace Management  Planned Maintenance  Human rights  Environmental best practice  Brand enhancement  Community support  Lack of skilled resource  High staff / contractor turnover  Increased disposal and environmental costs  Low investment  Impact on customer loyalty, recruitment and retention Sustainable Development Risks

Are we effectively managing our risks? Do we know what they are? Do we know what our stakeholders want? What information should we be collecting? How can we consistently measure environmental and social performance? How can we demonstrate to our stakeholders that we are managing our risks Can we capitalise on value creating opportunities? Where are the financial gains to be made? How can we demonstrate to stakeholders that we have social and environmental vision? What should you be asking?

Global Alliance for Building Sustainability (GABS) Charter GABS is committed actively to promote the adoption of policies and practices to accelerate the achievement of the goal of sustainable development in the sectors of land, property, construction, facilities management, infrastructure and development. We are committed to closing the gap between policy and practice and taking practical and determined steps towards making sustainable development a reality for practitioners working in business, government, and/or communities. We are committed to creating the opportunity in which practitioners are enabled to implement processes and practices that deliver sustainable development.

We undertake to accelerate the achievement of sustainable development by actively : –building and strengthening partnerships between policy makers and practitioners –fostering co-operation and collaboration within and across professions and other stakeholders –promoting awareness raising, participation and learning amongst the many stakeholders involved in these sectors –promoting, supporting and disseminating appropriate research, education and training –facilitating the development of tools and performance benchmarks Global Alliance for Building Sustainability (GABS) Charter

What should you be looking to achieve? SD vision & principles Implementation across business Tailored KPI’s, targets & effective information flows Identification and exploitation of value creating opportunities Improved performance and risk management

How do I manage my risks? Sustainable Development KPI’s Individual Performance Indicators Environment Projects Community Workforce Land Use/ Biodiversity

How do I manage my risks?

What can I do? What should you do next? Identify your key risks Develop your Policy, Vision and Principals Implement across your activity and encourage inclusion and involvement from service providers, partners etc Look at specific wins eg: Purchasing of furniture / wood from assured sources e.g. FSC Disposal of electronic equipment to manages sources Social and ethical management of CDM projects Encourage use of managed source products eg coffee, clothing

Any Questions? Sunil Shah Johnson Controls