Johanne Gélinas

« WHY A RESPONSIBLE
BUSINESS IS MORE THAN A
NICE TO HAVE »
Johanne Gélinas - Partner
Greentech 2013
FOUR MATURITY LEVEL ARE POSSIBLE TO
TRANSFORM A RISK INTO AN OPPORTUNITY
+
Shape the futur
Market driven
-
Compliance
Legal
requirements
Customer
requirements
Engaged
Internal
engagement
through a vision
and objectives
+
External
engagement by
integrating the
stakeholders
expectations in
the value chain
Long term vision,
innovation,
business positioning
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SPECIFIC ISSUES RELATED TO SUSTAINABLE
DEVELOPMENT IN THE MARITIME INDUSTRY
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QUESTION TO CONSIDER BEFORE EXPECTING A
SUSTAINABLE RETURN ON INVESTMENT (SROI)
»
»
»
»
What is my sector doing already?
What are other sectors doing?
What could my sector do next?
Which type of leader I would like to be in my sector?
Environmental
performance
Engagement
& initiatives
Expectations
SROI
analysis
Economic
performance
Social
performance
4
THE SROI COST AND BENEFIT ANALYSIS
FRAMEWORK INEGRATE COSTS AND BENEFITS
Example for the environmental initiatives
Costs
Benefits
Cash ($)
Non-cash
• Reduced electricity
costs
• Reduced water costs
• Reduced sewage costs
• Reduced waste
disposal costs
• Other operational
savings
• Reduced green house
gas emissions
(depends)
• Reduced chemical
pollutant emissions
• Reduced solid waste
• Improved health
• Improved productivity
Energy reduction
initiatives ($)
Water usage reduction
initiatives ($)
Waste reduction
initiatives ($)
Health & safety
initiatives ($)
Total benefits ($)
Total costs ($)
SROI ($)
Source : Shades of green, sustainable return on investment: process and metrics, ISWG Meeting 2010
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AS A KEY OF THE VALUE CHAIN, TRANSPORT HAS A
HUGE IMPACT ON CARBON FOOTPRINT…
Impact on carbon footprint
Impact on carbon footprint
GHG
transport
GHG
production
Cardon footprint
products/corporations/cities
Corporations
Intermodal
transfer
Production
Distribution
Distribution
Retailers
Cities,
communities
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…AND YOUR CLIENTS HAVE EXPECTATIONS TO
MEET THEIR OWN SUSTAINABLE OBJECTIVES
« Tackling climate change will require extraordinary commitment from us all. At Tesco, we have
been working hard to play a positive role. In 2007, we reduced carbon emissions from our
distribution systems across our global operations by 4.7% per case delivered. »
« IKEA wants to reduce carbon dioxide emissions from transport. All transport services
must use modern vehicles, have concrete emission targets and measure their carbon dioxide
emissions. Optimal loading, cleaner fuels and fuel efficient driving techniques are important
factors in making goods transport better adapted to the environment. »
« As a member of Business for Social Responsibility (BSR) Clean Cargo Group, we
are collaborating with a dozen companies to identify ways of reducing emissions from
sea freight. »
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What are the key
success factors ?
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WHAT IS A GOOD STRATEGY TO OPTIMISE THE SROI ?
High sustainability firms outperform others financially because they
possess cultures of sustainability and they share the following six traits:

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Strong Governance
Comprehensive Stakeholder Engagement
Long-Term Perspectives
Detailed Measurement
High degree of transparency
Reporting
Source : Eccles, R.G., Ioannou, I. & Serafeim,G.2011. The Impact of a Culture of Corporate Sustainability on Corporate Behavior and
Performance. Working paper 12-035, Harvard Business School
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1. STRONG GOVERNANCE
»
High sustainability companies have board of director and senior executive incentives
tied to environmental and social performance in order to integrate sustainability
objectives in a efficiency manner in the global strategy
Source : Port of Los Angeles, Sustainability report 2011, Figure 2
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2. COMPREHENSIVE STAKEHOLDER ENGAGEMENT
»
High sustainability companies ensure understanding the stakeholder expectations and
provide feedback
Stakeholders
Company
Key corporate responsibility issues
Governments
CO2 Emissions
Society and communities
Ocean pollution
Clients
Ecosystems
Shipping Companies
Equipments’ efficiency
Employees
Responsible services
Suppliers
Human resource practices
NGOs
Impact on communities
Shareholders and investors
Governance and reporting
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2. COMPREHENSIVE STAKEHOLDER ENGAGEMENT
(CONT’D)
»
High sustainability companies have identified its stakeholders having an impacts on its
operations
Source : Port of Los Angeles, Sustainability report 2011, Figure 1
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2. COMPREHENSIVE STAKEHOLDER ENGAGEMENT
(CONT’D)
»
High sustainability companies have prioritized the stakeholders issues (materiality
test)
Source : Port of Vancouver, Sustainability report 2011
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3. LONG-TERM PERSPECTIVES
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High sustainability companies take a long-term focus in communications with analysts
and other stakeholders, and as a result attract more long-term investors, such as
institutions
« The Port is
commited to assisting
the City in meeting its
sustainability goals. »
Mayor Villaraigosa,
Los Angeles
Source : Port of Los Angeles, Sustainability report 2011
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4. DETAILED MEASUREMENT
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High sustainability companies measure key indicators such as employee injuries,
suppliers’ environmental and social performance, etc.
Source : Maersk Line, Sustainability section,website
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5. HIGH DEGREE OF TRANSPARENCY
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High sustainability firms share their measures with stakeholders, integrate social and
environmental performance into financial reporting, and engage external sustainability
auditors.
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6. BEST IN CLASS HAVE A GRI REPORT
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Leaders as Port of Rotterdam and Port of
Vancouver follow the GRI guideline
6. MAJOR THEMES IN A GRI REPORT (EUROPE)
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Port of Rotterdam (2012) : Dialogue
and stakeholder involvement
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Port of Antwerp (2012) : Nature conservation
6. MAJOR THEMES IN A GRI REPORT (NORTH AMERICA)
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Port Metro Vancouver (2011) :
community expectations
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Port of Los Angeles (2011) : community
development (revitalization)
THREE CHALLENGES TO OPTIMIZE THE SROI
1. By building a strong
sustainability vision of the
business
2. By integrating the stakeholders
expectations in your strategic
process
3. By implementing measures to
increase the environmental and
social performance
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