Transcript GEMI Benchmarking Survey on EHS Annual Reports

GEMI Benchmarking Survey
on
EHS Annual Reports
Richard J. Guimond, Motorola, Inc.
and
George Nagle, Bristol-Myers Squibb Company
Portland, Oregon
June 28, 2001
1. Does your company prepare a periodic
public EHS Performance Report?
6%
Yes
No
94%
Yes = 32; No = 2
2. If Yes, how frequent?
20
18
16
14
12
10
8
6
4
2
0
Annual
Biennial
Others*
*Others: Web site updated every 4 months; varies; information provided on web
site; OSHA safety performance/environmental measures updated monthly.
3. How many years have you published a
report?
Number of Years
10 to 12
7 to 9
4 to 6
1 to 3
0
2
4
6
8
10
Number of Companies
Average number of years companies have issued reports: 5 years
12
4. Why do you publish a report?
• Let employees know how the company is doing - 32
• Share company information with stakeholders - 31
• Provide transparency to government, NGOs, and
neighbors - 26
• Respond to stockholder pressures - 11
• Provide an advantage over competitors - 11
• Meet a customer request - 7
• Others - 3
5. What is the length (# of pages) of your
most recent report?
Number of Pages
41 to 50
31 to 40
21 to 30
11 to 20
1 to 10
0
2
4
6
8
Number of Companies
Average number of pages in report: 23 pages
10
6. Who are your audiences?
35
30
25
20
15
10
5
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Secondary
Primary
7. Does the report follow any specific format?
12
10
8
6
4
2
0
GRI
CERES
PERI
Other
8. Does your report cover the following EHS
aspects?
• EHS Performance Data 32
• EHS (or environmental)
Policy - 31
• EHS Awards - 30
• EHS Compliance Record 29
• Environmental
Management System - 27
• EHS Goals - 25
• Environmental
Remediation - 23
• Product Stewardship - 21
• Stakeholder Involvement 19
• Employee Wellness - 14
8. Does your report cover the following EHS
aspects? (Cont’d)
• Others:
–
–
–
–
Initiatives, e.g. Champions for the Environment, Project XL
Sustainable development, EHS principles, safety, energy efficiency
EHS philanthropy and community projects
Governance, issues, UN Global Compact, experimental animal
data, environmental impact (Eco-indicator-95) and benchmarking
– Employee volunteer efforts, investment in community
environmental projects, sustainable forestry indicators,
environmental capital spending, environmental training data
– CSR, climate change
9. Please identify major sections of
information in your report.
Company Profile
CEO Letter
Social Policies
Economic Policies
Social Performance
Economic Performance
Others
0
5
10
15
20
25
30
35
9. Please identify major sections of
information in your report. (cont’d)
• Others:
–
–
–
–
–
Climate change position statement
Environmental stewardship success stories
Product and packaging performance
HSE performance
Metrics; initiatives; expenditures; awards; SHE philosophy;
remediation, compliance
– EHS values, policies, management system, performance,
examples, timeline
– Safety & health, awards & recognition, managing for excellence,
environmental performance, stewardship & community
– SO2
9. Please identify major sections of
information in your report. (cont’d)
• Others:
– Audits performed; inspections and fines; contractor safety;
environmental expenditures; responsible care implementation; fleet
safety
– Alcohol awareness; also health and safety performance
– We focus on our EHS programs and performance with case
examples.
– Message from Vice President of EHS, summary of performance on
key metrics, recognition by external parties/agencies
– Management systems, products, regulatory compliance, health &
safety performance, outreach programs
– Management systems (social, economic and environmental),
sustainability in action (case studies of various initiatives)
9. Please identify major sections of
information in your report. (cont’d)
• Others:
– Environmental measures, safety measures, sustainable forestry
measures, community outreach measures, corporate ESH, use of
resources, and community awareness policies
– EHS performance, organizations/staffing, quality of management,
executive summary
– Environmental performance, P2, emergency response
10. What metrics do you report on?
• Recordable Injury/Illness
Case Rate - 25
• SARA Title III - 23
• Haz Waste Generated - 23
• Lost-day Case Rate - 22
• Others - 21
• Energy Usage - 21
• Non-haz Waste Recycled 20
• Global warming gas
emissions - 14
• Water Usage - 13
• VOM emissions - 13
• EHS Expenditures - 12
• NOX emissions - 11
• Days from Work - 10
• CO emissions - 9
• HAP emissions - 7
• PFC emissions - 5
10. What metrics do you report on? (cont’d)
• Others:
– Electricity use; Packaging use; Violations & Fines; Reportable
spills
– PM; SO2; Mercury
– Social contributions, diversity
– Packaging; waste; carcinogens and suspect carcinogens
– VOC air emissions, manufacturing releases to water, solid waste,
rate of waste generation, energy, greenhouse gas emissions,
compliance
– Violations
– TRI emissions; recycling; NOVs; fines paid; emergency response
drills, spills
10. What metrics do you report on? (cont’d)
• Others:
– Dichloromethane emission, 30 hazardous chemical emissions, heavy
metals in product, ISO 14001 registrations
– Remediation sites, citations, penalties, reportable incidents, oil &
produced water releases
– MSDS, contractors, inspections, compliance
– Financial highlights; philanthropic contributions; diversity data;
wastewater COD; performance against internal standards (audit
programs, certified site leaders); historically underutilized business
(HUB) spending; environmental liabilities
– Compliance
– HSE investments, HSE personnel, water emissions, heavy metals, air
emissions, disposal method of hazardous waste
10. What metrics do you report on? (cont’d)
• Others:
– Environmental and forestry wildlife training hours, completion of audit
items, forestry verification audits, citizen complaints, recovered paper
consumption, total reduced sulfur emissions, sulfur dioxide emissions,
BOD/TSD discharges, Chairman’s Safety award winners, OSHA VPP
participation, safety inspections, time operating injury-free, forestry
BMP implementation, AF&PA sustainable forestry initiative metrics,
volunteer hours, investment in community environmental projects
– NOVs, reportable spills, fines paid
– Sustainable development measures, economic performance, production,
implementation of Responsible Care, total waste reduction, waste water,
all chemical emissions, motor vehicle incidents, dioxin emissions,
transportation incidents, public favorability scores at largest sites
– Accident and non-accident releases, accidents per million ton mixes
11. How many different metrics to you
report?
Number of Metrics
41 to 50
31 to 40
21 to 30
11 to 20
1 to 10
0
2
4
6
8
10
Number of Companies
Average number of metrics used: 14 metrics
12
14
12. For which specific metrics, do you have
corresponding goals that are included in your
report?
• Recordable case rate, internal management system performance, biologicallydiverse land preservation, energy use, water use, greenhouse gas emissions,
off-site hazardous waste disposal, hazardous air emissions, hazardous water
emissions, packaging usage, package recycled content
• EPIs - set goals years and will report annually starting next year
• Air carcinogens, energy, greenhouse gases, hazardous waste
• Just 2 general goals of reducing waste/accidents while production increases
• VOM emissions, HAP emissions, PFC emissions, hazardous waste generated,
non-hazardous waste recycled, SARA releases, water usage, energy usage,
and recordable injury/illness case rate
• Carcinogens and suspect carcinogens, SARA releases and packaging weight
12. For which specific metrics, do you have
corresponding goals that are included in your
report? (cont’d)
• Violations, lost work days
• Responsible Care implementation, solvent emissions as a % of use and
serious I&I rate
• Disabling injuries, DI incidence, total injuries inc rate, biogas production,
water use, electric purchases, fuel, solid waste, hazardous waste
• 5 of the 7 goals reported
• OSHA recordable, OSHA restricted, OSHA days away from work,
reportable quantity, wastewater noncompliance
• The goal for all metrics is continuous improvement
• Injury rates, recycling, VOCs
• VOM emissions, Hazardous waste generated, non-hazardous waste
recycled, energy usage, recordable injury/illness case rate, lost-day case rate
12. For which specific metrics, do you have
corresponding goals that are included in your
report? (cont’d)
• Energy use, office paper, toxic chemical releases, packaging usage, hazardous
waste generation, solid waste disposal
• Energy, accident rates, reduction of halogenated VOCs
• In 1994, we established 58 goals and have reported progress biennially.
Having met most of those goals by 2000, we decided to replace goals with 34
measures of environmental and safety performance.
• Air, water, solid waste, rate of waste generation
• Waste management and recycling; energy use, corporate-wide TRI reduction;
recordable injury reduction; enforcement action (reduction/elimination)
• Goals are not included for competitive reasons
• Responsible Care implementation, energy use, waste reduction, chemical
emission reduction, priority emission reduction, dioxin, process safety
incidents, spills, transportation incidents, waste water, injury/illness rate,
motor vehicle incidents
13. How do you publish your report?
35
30
25
20
15
10
5
0
Hard Copy
Web Site
CD Rom
Other
14. Would you describe your current report
distribution as primarily web-based?
46%
54%
Yes
No
14. If yes, do you also produce a printed
summary report?
38%
62%
Yes
No
14. If yes, do you also use postcards and
other printed means to announce the
availability of the report?
45%
55%
Yes
No
15. Does the report address sustainable
development?
9%
12%
39%
40%
Not at all
Beginning to address it
Cover some elements
Covers most elements
16. What are the percentages devoted to the
following?
Average %
Low to High
EHS
78%
40% to 100%
Social
17%
2% to 40%
Economic
9%
1% to 20%
Other
10%
3% to 20%
17. How is your report prepared?
Internal EHS
Internal w/graphics support
Internal w/writing support
Comm. Staff
Consultant
0
5
10
15
20
18. How many copies do you print?
50 K +
40+ to 50 K
30+ to 40 K
20+ to 30 K
10+ to 20 K
5+ to 10 K
1 to 5 K
0
2
4
6
8
Average number of reports printed: 26,400 copies
10
19. How do you distribute the reports?
•
•
•
•
•
•
•
•
•
•
•
•
List of other stakeholders - 25
Corporate headquarters offices - 24
Senior management list - 23
Employee mailing list - 16
Gov’t mailing list - 15
NGO list - 16
Sales offices - 11
Customer mailing list - 12
Others - 11
General mailing list - 10
Manufacturing or service facilities - 4
Supplier list - 3
19. How do you distribute the reports?
(cont’d)
• Others:
– EHS contacts in other companies
– Shareholders at annual shareholders meeting; notice on company’s
annual report, manufacturing facilities as requested
– Provide on web
– Board of Directors
– Published on web
– Business unit CEO’s and PR
– MEDIAlist
20. How much staff time does it take to
develop the report?
• Average time:
– 0.88 person years
• Range (minimum to maximum):
– 0.015 to 4.65 person years
20. How much staff time (by person years)
does it take to develop the report?
Average Time
0.36
Minimum to
Maximum
.01 to 1
Manufacturing
facilities
Communications
Dept.
Information
Technology Dept.
Other staff
0.02
.005 to .20
0.22
.005 to 1.8
0.01
.005 to .175
0.05
.02 to .80
Consultants
0.21
.05 to 2
EHS Staff time
21. How much do you spend on your annual
report for preparation and development?
200 k +
160+ to 180 K
140+ to 160 K
120+ to 140 K
100+ to 120 K
80+ to 100 K
60+ to 80 K
40+ to 60 K
20+ to 40 K
1 to 20 K
0
1
2
3
4
5
6
Average cost to prepare and develop report: $ 86,801
7
8
22. How much do you spend on your annual
report for printing and distribution?
Above 100 K
60 K to 100 K
10+ to 50 K
1 to 10 K
0
2
4
6
8
Average cost to distribute report: $ 29,238
10
12
23. Do you evaluate the effectiveness of your
report?
29%
Yes
No
71%
23. If Yes, how do you evaluate the
effectiveness of your report?
14
12
10
8
6
4
2
0
Comment Web-based Meetings
Card
card
Survey
Other
Number of Responses
24. If you use a comment card, how many
responses did you receive for your last report?
Greater than 500
250 to 500
100 to 250
50 to 100
0 to 50
0
2
4
6
Number of Companies
8
10
Number of Responses
25. If you use a web-based card, how many
responses did you receive for your last report?
Greater than 500
250 to 500
100 to 250
50 to 100
0 to 50
0
1
2
3
4
Number of Companies
5
6
26. Do you plan to continue to publish your
report in the future?
3%
Yes
No
97%
27. What changes to you plan?
14
12
10
8
6
4
2
0
Reduce
size
Increase
size
Expand
sections
Expand
data
Other
27. What changes do you plan? (cont’d)
• Others:
– Make it even more web-based
– Include health, safety, social and economic information going
forward
– Social commitment
– Expand net content; adding social responsibility beyond HS;
include global EHS performance data; issue net based report with
printed executive summary
– Conform with GRI
– Expand the social responsibility section.
– Expand EHS and sustainability, especially social data in 2002
– Sustainability; metrics; include some GRI aspects
– Research, stewardship, data
27. What changes do you plan? (cont’d)
• Others:
– To detail projects that are important and relevant at the time; possibly
add more metrics
– We intend to cover more financial figures.
– Expansion on internet
– Move towards GRI format
– Additional metrics
– Contemplating moving more information to the web and reducing the
size of the printed report
– Expand data on social programs
– EHS compliance; EHS philanthropy; more air, water, waste emissions
– Incorporate new metrics based on our newly developed goals
– Metrics, sustainability
– Include more social metrics, move towards GRI, more on internet
28. What benefits do you believe the company
has obtained from publishing the report?
• Improved EHS awareness and relations with employees 29
• Improved reputation with neighbors or NGOs - 26
• Improved relations with government bodies - 26
• Increased reputation or sales with customers - 25
• Better understanding of EHS policies and performance
from managers - 17
• Reduced external criticism about the company - 13
• Better understanding of companies EHS expectations of
suppliers - 9
• Others - 4
28. What benefits do you believe the company
has obtained from publishing the report?
(cont’d)
• Others:
– Used in recruiting and to give employees sense of company’s
concern and commitment on aspects addressed by the report.
– Improve shareholder value.
– It is anticipated that the report currently being prepared will result
in improved understanding of the financial impacts of our EHS
programs on the part of socially responsible investors.
– Improved reputation with investors
29. Do you believe that the company obtains
sufficient benefits compared to the resources
it takes to publish the report?
0%
Yes
No
100%
30. What type of paper did you print your last
report on?
Recycled*
Tree-free
Glossy
Chlorine Free
Sustainable Fores
Other
0
5
10
15
20
25
*Average post consumer content: 65%; range was 10% to 100%
30
31. What percentage of companies use soy
inks?
36%
Yes
No
64%
ay
Ju
ly
A
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us
Se
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em
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M
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a
Ja
32. What month did you release your most
recent report?
7
6
5
4
3
2
1
0
33. Did it include data and information for the
entire previous calendar or fiscal year?
9%
Yes
No
91%
34. Does your financial annual report contain a
reference to your EHS report or a section on
EHS?
28%
Yes
No
72%
35. If yes, what type of information does it
include?
• It references the report and our Company’s Internet site. Also has
standard SEC section and remediation liability.
• Very brief reference to finding more information on the web.
• Mostly cost information.
• Report includes environmental information as presented in SEC
reports.
• Performance and achievement.
• How to request the report.
• Values, performance results, web site address
• CEO statement from HSE report
• The financial annual report includes a summary of significant EHS
accomplishments, a table of environmental expenditures, and a
discussion of remediation matters and references the availability of the
EHS report.
35. If yes, what type of information does it
include? (cont’d)
• Environmental spending (capital and operating & maintenance),
information on Superfund/remediation and major enforcement actions.
• Summary of environmental efforts/performance.
• Only the web address and required information on environmental
liabilities.
• Talks about the management system and supplier policy in discussion
section. Also in Chairman/President letter discusses responsibility in
terms of alcohol awareness, environmental protection, community
support and charitable contributions.
• Very brief information on major activities.
• Safety, environmental liabilities and expenditures.
• General statement
• Specific operational report contained 2 pages on sustainable
development and 2 pages on corporate citizenship and 2 pages on
employees
35. If yes, what type of information does it
include? (cont’d)
• In the investor information section, there are directions on how to
request a hard copy of the EH&S report and how to access it from the
internet.
• Some environmental information included as part of SEC
requirements. Additional highlights related to EHS may also be
included. No specific reference to the separate EHS report.
• Information on how to obtain the EHS report.
• Required environmental disclosure.
• Reference
• Remediation costs
36. Do you try to integrate the financial report
and the EHS report in any way?
28%
Yes
No
72%
36. Do you try to integrate the financial report
and the EHS report in any way?
• Reference to each report in the other. Also information is linked
electronically on the web under the general title of sustainability.
• Want to going forward; perhaps print and release at the same time.
• Yes; identical graphical layout.
• We use some of the same numbers in each.
• ESH risks included in the financial report
• Yes, in the EHS report there is linkage to financial performance.
• Yes, the EHS department provides information for the EHS discussion
contained in the financial report.
• Sustainability report summarizes the financial data
• Include summary of these topics in annual report and publish at same
time
37. What additional comments would you
like to share about your company’s plans and
experiences on this topic?
• Measuring the amount of “action” that EHS information is generating
on the web.
• We have a long way to go, but reviewing the reports of GEMI
companies has been very helpful.
• Our company is working with HR and Public Affairs group to include
expanded social responsibility aspects into the public report. We’ve
also contracted with a marketing consultant for assistance.
• We recognize the importance of reporting and plan to increase it during
the next two years.
• We are planning to utilize our company’s web page more in the future,
and increase awareness of the efforts globally including more
information on emerging issues and global EHS activities.
37. What additional comments would you
like to share about your company’s plans and
experiences on this topic? (cont’d)
• We’re learning and look forward to seeing the results of this survey.
• The greatest value of the report seems to be in increasing the internal
understanding of the company’s EHS goals, programs, and
performance.
• Following GRI has been helpful in providing a more complete picture
• We have 2 outside reviews of our report - verification by AD Little and
review/report challenge by John Elkington.
• Cost to produce online version of EHS report.
• It always takes longer to do than you think it will. Plan in advance
with many internal stakeholders.
37. What additional comments would you
like to share about your company’s plans and
experiences on this topic? (cont’d)
• Don’t publish a report when: you can’t make the reports relevant to
your readers; you are only going to toot your horn about the good
things the company has done; and you do not want to discuss pitfalls,
setbacks, and mistakes.
38. What additional comments should have
been asked on this topic?
• How often do companies routinely update their EHS information on
their web site? We do it every four months.
• What’s your company’s biggest challenge with regard to addressing
social responsibility in an integrated manner with EHS?
• Do we provide information that provides useful information to
financial analysts to better understand how our EHS efforts provide
value to the company’s financial performance?
• The benefit vs. effort hours is misleading; we would track and use
metrics without a corporate report.
• How many of your reported metrics are solely for external reporting;
how many additional HSE metrics are used to run the business, yet are
not reported externally - list (link to business strategy, performance).
38. Do you have any other comments on this
survey form or this survey process?
• Great topic and very timely for us. This is an area that
seems to be evolving.
• I believe the survey did not assume HS was an aspect of
social responsibility - which it is.
• Good survey. I’m anxious to see the results.
• Process was fine.
39. What future topics should GEMI
benchmark which would have significant
value for your company?
• Survey on investor relations.
• NGOs/stakeholder strategy - how do you solicit input from various
stakeholders, frequency of contact and communication, benefits, risks,
lessons learned, initiated at corporate level vs. interaction at business
unit or facility level.
• Environmental/social responsibility accounting practices, associated
data gathering methods, issues and IS strategies.
• Emerging HSE issues.
• Training professional EHS staff.
• What drives EHS management - reduce costs; reduce risk; increase
business value; keep out of jail? Then ask other questions that help
determine how much effort a company puts behind what they say they
do. Do they walk the talk?
39. What future topics should GEMI
benchmark which would have significant
value for your company? (cont’d)
• Would like to see some metrics on ISO 14001 and 18001; e.g. %
certified, combined with ISO 9000, costs, time frame to roll out.
• Benefits of producing an environmental or sustainability report and
how to track one’s success in this area.
• How comparable are reports that follow standards such as GRI, PERI,
or CERES from company to company within a similar industry or in
diverse industries?
• Is third-party verification in this area reliable based on the relatively
recent emergence of these types of publications?
• GHG inventory methodologies (assets excluded/included; how to
handle acquisitions/divestitures; GHG reduction targets).