Transcript Non-legislation Engineering 2014
Non-legislation / Market driven requirements Engineering
August 2014
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Non-legislation / market driven requirements
What are market driven requirements?
Social requirements Product safety Environmental requirements Centre for the Promotion of Imports from developing countries
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Non-legislation / market driven requirements
What are market driven requirements?
Social requirements Product safety Environmental requirements Centre for the Promotion of Imports from developing countries
Legislation
Consumer / User Health and Safety CE Marking/HACCP ISO 9000 series Certificate Social / Fair Trade labels EN / IS0 norms SA 8000 / OHSAS Certificate Environment Codes of conduct E.g. Packaging, WEEE, RoHS, Cadmium ECO Labels IS0 14001 Certificate
Quality
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Social accountability Environment
Market driven
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Market access requirements
(EU) Legislation : Consumer Health & Safety (EU) Buyer Requirements: Social issues Environmental Issues Product / packaging
Direct impact in the EU
Environmental issues Manufacturing
Impact abroad e.g.
exporting country
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Company values
Governments Legislative compliance: - Consumer health and safety - Environment NGOs Public pressure: - Replace dangerous chemicals - Brands: responsibility for supply chain Clients - Products according to specs - High quality assurance Consumers Consumer products Expect: - Safe products - Good circumstances 6
Black Box Company policy
Purchase requirements:
-Social -Product safety -Environmental -Quality Centre for the Promotion of Imports from developing countries
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Why comply?
Minimum requirements for becoming a supplier Preferred supplier main stream markets Preferred supplier & Niche markets Centre for the Promotion of Imports from developing countries
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Non legislative requirements
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Most non legislative requirements deal with: Quality Product / market / buyer specific
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Social issues
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Product safety
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Environmental issues
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Non legislative requirements
These requirements are included in: • Sector Codes • Company Codes of Conduct • Supplier Declarations • Management systems Centre for the Promotion of Imports from developing countries
Examples
10 The Volvo Group prefers to work with component suppliers, consultants, distributors and other business partners that share the principles expressed in this Code of Conduct. Centre for the Promotion of Imports from developing countries
Examples
Dutch sector association for the Metal sector 13000 SMEs in the Netherlands A CSR monitor to assist their members in integrating CSR in their policies and operations 11 Centre for the Promotion of Imports from developing countries
Examples
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Example of non-legislative requirements
NSK 13 Centre for the Promotion of Imports from developing countries
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References, Management and performance
ISO 26000 ILO OECD GRI References ISO 26000 ISO 14001 OHSAS 18001 Management GRI SA 8000 labels Performance 18 What is CSR?
What to do and how?
Continuous improvement Disclosure and compliance Centre for the Promotion of Imports from developing countries | September 2010
CSR References
Reference
ISO 26000 ILO OECD Guidelines Global Compact The international guideline for CSR The basis for most labour related CSR initiatives Expectations of governments with regard to the behaviour of multinational enterprises An international CSR initiative which companies can join 19 Centre for the Promotion of Imports from developing countries
ISO 26000 – Guidance on Social responsibility
Developed by developed and developing countries • • • To be used as an international reference on SR What is (C)SR?
What do the issues mean?
What is expected from companies?
• • To be used as a guidance document How to identify stakeholders?
How to implement CSR in the organisation?
Not for certification (self declarations) 20 Centre for the Promotion of Imports from developing countries
21 Companies use ISO26000 to develop their CSR policy Including requirements for suppliers Centre for the Promotion of Imports from developing countries
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Social requirements
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Social requirements
Social issues have become increasingly important in international trade Negative publicity on labour conditions may have an impact on your clients ’ reputation and sales → your sales It is not just about buyers ’ requirements!
Improved labour conditions will positively impact productivity, recrutement and retention of high quality personel It is a part of a responsible / decent business 23 Centre for the Promotion of Imports from developing countries
Social requirements - ILO
ILO Conventions • • • • UN organization dealing with aspects of work International labour standards Governments are obliged to implement ratified Conventions in their own national policies. Many social requirements on labour conditions by the private sector are based on the ILO Conventions Which of the (185) ILO Conventions are being used by the private sector as market access requirements?
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Social issues – 8 core ILO Conventions
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Right to union membership and to negotiate Non-discrimination Forced labour Minimum age Working hours Equal remuneration Minimum wages Occupational Health and Safety 25 Centre for the Promotion of Imports from developing countries
Social issues – example of BSCI
Business Social Compliance Initiative
• Focus on social issues + Compliance with environmental legislation • Based on ILO • One auditing system for the European retail and brands based on a common code ; no certificate • Suppliers that are audited will be included in the CBI database • 26 BSCI members can use this database Centre for the Promotion of Imports from developing countries
BSCI
Over 1000 members: retail, brands and manufacturers 27 Centre for the Promotion of Imports from developing countries
BSCI
Use the code as a benchmark for your organisation Also look at other codes of conduct! 28 Centre for the Promotion of Imports from developing countries
Social issues – Conflict minerals
29 Due diligence and traceability Partners: Nokia, Blackberry, Philips, HP, Motorola, Tata steel, etc.
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Managing social issues: OHSAS 18001
Occupational Health and safety Assessment Series
• A framework for managing occupational health and safety responsibilities • Tools to identify elements of your business that have an impact on health and safety • Designed for all sectors • Non-accredited certificates • Implementation is structured along the lines of ISO 14000 • It is a tool to improve on OHS and show commitment 30 Centre for the Promotion of Imports from developing countries
Performance on social issue: SA 8000
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SA8000
International standard for working conditions • The first auditable social standard / independent • Standards: what is considered social accountability? & Requirements for a management system: implementation of the standards in business policy • Certification by means of independent verification • Applicable to all industries 31 Centre for the Promotion of Imports from developing countries
SA 8000
Standards based on ILO and other human rights conventions 9 core areas: 1. child labour 2. forced and compulsory labour 3. health and safety 4. free association and collective bargaining 5. discrimination 6. disciplinary pratices 7. working hours 8. remuneration (compensation) 9. management systems (incl. supplier control and stakeholder engagement) 32 Centre for the Promotion of Imports from developing countries
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Product safety requirements
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Product safety
Companies tend to require more than what is legally obligatory: risk management • • • Longer lists of hazardous substances More stringent requirements Pro active on legislation (e.g. SVHC in REACH) Codes of Conduct Substances restrictions 34 Centre for the Promotion of Imports from developing countries
Product safety - example
“Policies can be developed that may go beyond legislative compliance based on scientific evidence and stakeholder consultation” “Each supplier is required to ensure product compliance with this list” 35 Centre for the Promotion of Imports from developing countries
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Environmental requirements
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Environmental requirements
Focus of buyers on products • Design for recycling / Reuse • Use of hazardous substances (also as a result of RoHS, REACH, CE) • Biobased / circular economy / Cradle to cradle • Packaging • Transport 37 Centre for the Promotion of Imports from developing countries
Environmental requirements
Focus of buyers on processes • Emissions of hazardous substances • Energy use • Water use • Impact on biodiversity • • • • ISO26000: Prevention of pollution Sustainable resource use Climate change mitigation and adaption Protection of the environment, biodiversity and restoration of natural habitats 38 Centre for the Promotion of Imports from developing countries
Environmental issues - example
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Environmental issues – example Volvo
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Suppliers also responsible for sub suppliers
Comply with applicable legislation Have knowledge of Volvo’s policy
ISO 14001 or EMAS
Able to report on environmental work Maintain an open dialogue with Volvo for improvements Environmental data must be available on request Chemicals and materials involved must meet Volvo standard requirements • • • • • Comply with REACH Minimize impact of packing materials Handle excess and rejected materials with minimal impact
Consider use of recycled/recyclable materials
Supply specified chemical and material content on request according to the International Material Data System 40 Centre for the Promotion of Imports from developing countries
Environmental issues - Philips
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Environmental issues - Management
ISO 14001
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ISO 14001
Why ISO 14001?
• Improved perception of the key environmental issues by employees and a better (greener) public image of the organization • An increase in the efficiency and use of energy and raw materials • Improved ability to meet compliance with environmental regulations • Dependence on a system rather than just the experience and capabilities of an individual to manage the environmental function of an organization. But: No guarantee for good environmental performance!
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ISO 14001
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Market Impact
The standard is widely used in many countries; also without actual certification ISO 14001 required / preferred by some buyers Integration in Public green procurement (certification not required) 44 Centre for the Promotion of Imports from developing countries
Showing performance: environmental labels
• Communication tool: Business to business or consumer • Mainly niche markets, increasingly mainstream in food • Mostly on products, not on components 45 Some environmental product labels in the EU Centre for the Promotion of Imports from developing countries
Environmental labels
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Labels… How to use them?
• To use to identify key issues & best in class • To benchmark your products / processes • To show compliance with specific social & environmental requirements in the supply chain (B2B) • To show that you perform better than the competition • Some labels required by legislation (like CE) 47 Centre for the Promotion of Imports from developing countries
How to keep track?
Check for your products and potential export countries!
Use the CBI website 48 Centre for the Promotion of Imports from developing countries
So what to do?
1. Select initiatives relevant to your product or sector 2. Use self assesments & audits to benchmark your performance 3. Assess CSR Position and ambition 4. Use the tools to improve, comply and market 49 Centre for the Promotion of Imports from developing countries
And…..
To prevent yourself from running from one buyer requirement to another… develop your own Code of Conduct!
Make sure your workers understand why CSR is important and integrate it in business operations You are not just doing it for the market!
Efficiency, productivity, innovation & You want to run a responsible business
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