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GEMI Benchmarking Survey on EHS Annual Reports Richard J. Guimond, Motorola, Inc. and George Nagle, Bristol-Myers Squibb Company Portland, Oregon June.

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Presentation on theme: "GEMI Benchmarking Survey on EHS Annual Reports Richard J. Guimond, Motorola, Inc. and George Nagle, Bristol-Myers Squibb Company Portland, Oregon June."— Presentation transcript:

1 GEMI Benchmarking Survey on EHS Annual Reports Richard J. Guimond, Motorola, Inc. and George Nagle, Bristol-Myers Squibb Company Portland, Oregon June 28, 2001

2 1. Does your company prepare a periodic public EHS Performance Report? Yes = 32; No = 2

3 2. If Yes, how frequent? *Others: Web site updated every 4 months; varies; information provided on web site; OSHA safety performance/environmental measures updated monthly.

4 3. How many years have you published a report? Average number of years companies have issued reports: 5 years

5 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

6 5. What is the length (# of pages) of your most recent report? Average number of pages in report: 23 pages

7 6. Who are your audiences?

8 7. Does the report follow any specific format?

9 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

10 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

11 9. Please identify major sections of information in your report.

12 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

13 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)

14 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

15 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

16 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

17 10. What metrics do you report on? (cont’d) Others: –Dichloromethane emission, 30 hazardous chemical emissions, heavy metals in product, ISO 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

18 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

19 11. How many different metrics to you report? Average number of metrics used: 14 metrics

20 12. For which specific metrics, do you have corresponding goals that are included in your report? Recordable case rate, internal management system performance, biologically- diverse 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

21 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

22 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

23 13. How do you publish your report?

24 14. Would you describe your current report distribution as primarily web-based?

25 14. If yes, do you also produce a printed summary report?

26 14. If yes, do you also use postcards and other printed means to announce the availability of the report?

27 15. Does the report address sustainable development?

28 16. What are the percentages devoted to the following?

29 17. How is your report prepared?

30 18. How many copies do you print? Average number of reports printed: 26,400 copies

31 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

32 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

33 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

34 20. How much staff time (by person years) does it take to develop the report?

35 21. How much do you spend on your annual report for preparation and development? Average cost to prepare and develop report: $ 86,801

36 22. How much do you spend on your annual report for printing and distribution? Average cost to distribute report: $ 29,238

37 23. Do you evaluate the effectiveness of your report?

38 23. If Yes, how do you evaluate the effectiveness of your report?

39 24. If you use a comment card, how many responses did you receive for your last report?

40 25. If you use a web-based card, how many responses did you receive for your last report?

41 26. Do you plan to continue to publish your report in the future?

42 27. What changes to you plan?

43 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

44 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

45 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

46 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

47 29. Do you believe that the company obtains sufficient benefits compared to the resources it takes to publish the report?

48 30. What type of paper did you print your last report on? *Average post consumer content: 65%; range was 10% to 100%

49 31. What percentage of companies use soy inks?

50 32. What month did you release your most recent report?

51 33. Did it include data and information for the entire previous calendar or fiscal year?

52 34. Does your financial annual report contain a reference to your EHS report or a section on EHS?

53 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.

54 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

55 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

56 36. Do you try to integrate the financial report and the EHS report in any way?

57 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

58 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.

59 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.

60 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.

61 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).

62 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.

63 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?

64 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 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).


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