1. SUSTAINABILITY AND THE BOTTOM LINE Presentation to The RMLA Auckland Branch 27 th June 2002 Rodger Spiller Executive Director NZBCSD

2. Providing business leadership as a catalyst for change toward sustainable development, and promoting eco-efficiency, innovation and responsible entrepreneurship.

3. Sustainable Development Is about ensuring a better quality of life for everyone, now and for generations to come.

4. What is SD? SD is forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.

5. SD encompasses three linked elements: Economic/Profit Environmental/Planet Social/People

6. February 2000

7. For Ever ECONOMY ENVIRONMENT SOCIETY Knowledge-intensive Responsive Niche-focused Clustered Proactive Educated Networked Diverse Caring Stretch goals for: Waste reduction Air and water quality Energy efficiency Biodiversity Restoration Everyone walks the talk Wealth is created sustainably Kiwis are confident & entrepreneurial Sustainable New Zealand Scenario

8. Our Aims Business leadership Demonstrate best practice Policy development Global outreach

9. Our Members 3M New Zealand Ltd BP Oil NZ Ltd City Care Ltd Deloitte Touche Tohmatsu Fletcher Building Ltd Fonterra Co-operative Group Limited Hubbard Foods Ltd Interface Agencies Landcare Research Meridian Energy Mighty River Power Ltd Milburn New Zealand Ltd Minter Ellison Rudd Watts Money Matters NZ Ltd Morel & Co Natural Gas Corporation NIWA Palliser Estate Wines of Martinborough Ltd Port of Tauranga Ltd PricewaterhouseCoopers Richmond Ltd Sanford Ltd Shell New Zealand Ltd Simpson Grierson Telecom New Zealand Ltd The Boston Consulting Group The Living Earth Company The Warehouse Group Ltd Toyota NZ Ltd Transfield Services (NZ) Limited Transpower Trust Power Urgent Couriers Ltd URS - NZ Ltd Waimangu Volcanic Valley Waste Management N.Z. Ltd Watercare Services Ltd

10. "Our company is focussed on the highest possible standards of performance. By that, we don't just mean financial performance. We also mean environmental and social performance. We see no contradiction between these three measures of performance. They are entirely complementary - and the companies that recognise that first, will deliver themselves a significant competitive advantage." Craig Norgate, CEO, Fonterra 8 April 2002

11. BCSD Gulf of Mexico BCSD Latin America BCSD Mexico BCSD Argentina BCSD Venezuela BCSD Colombia BCSD Costa Rica BCSD Croatia BCSD Czech Republic BCSD El Salvador BCSD Honduras BCSD Indonesia BCSD Malaysia PBE Philippines IEF South Africa EFZ Zimbabwe BCSD Thailand CII India BCSD Poland Vernadsky Foundation Russia APEQUE Algeria BCSD Brazil THE REGIONAL NETWORK - BCSDs and Partner Organizations - FE Spain FFA Spain EPE France BCSD Austria BCSD North Sea Region CGLI USA/Canada WASIG W.Australia BCA Australia BCSD New Zealand BCSD Mongolia BCSD Taiwan

12. Examples of WBCSD Projects DEDICATED TO MAKING A DIFFERENCE

15. Sustainable Development Reporting Climate Change Zero Waste Sustainable Consumption Successful Schools Youth Employment Current NZBCSD Projects

16. NZBCSD SDR Project Lead NZ business into Sustainable Development Reporting (SDR) Objective:

17. What is Sustainable Development Reporting? A clear picture of company SD values and principles A vision of how the company approaches sustainble development A transparent picture of performance information on enconomic, environmental and social dimensions The management response to performance – the commitment to improvement A description of the company’s contribution to the sustainable development of society One part of an overall management system designed to deliver a company’s strategic objectives consistent with sustainable development The information on a company’s SD values, objectives and aspirations through a public commitment to continuous improvement on a timeline with clear targets.

18. NZBCSD SDR Project Concise NZ Industry guide on the “why” and “how” for SDR All member companies report on progress towards their commitment to produce an SDR within 3 years of becoming a member Website area including industry guide, reporting facility and other “learning by sharing” tools.

19. Overview of the Guide Section One-Why Report: The Business Case for SDR Section Two-How to Report: The SDR Process Section Three-Examples of the Process: NZBCSD Case Studies  Case studies of businesses that had begun the SDR Process Sanford BP NZ Hubbard Foods The Warehouse  Case studies of businesses with no experience in the SDR process City Care Interface Agencies Telecom Urgent Couriers

20. Why Report?

21. Increased Financial Return and Reduced Risk for Shareholders “It hit us between the eyes when those two incidents (disposal of the Brent Spar oil platform and the execution of Ken Saro Wiwa in Nigeria) to which Shell was linked became front-page news around the world. Both were glaring examples of the need to communicate clearly with all audiences. In both cases we simply didn’t. We had developed blind spots for emerging stakeholders and important issues. Simply we had lost the ability to listen. And to act effectively on our principles and values.” Ed Johnson, Chairman, Shell New Zealand.

22. "Reasons for considering SDR include competitive advantage, enhancing reputation, shareholder value, improving sustainability culture. These include aspects of risk management. "Warts and all" is an issue, but the sooner an organisation is faced with reporting, the sooner it is faced with fixing them up. Warts and all increases creditability - we have realised there is an issue(s) we do not like it and so we are actually going to do something about it - but without painting the organisation "lily white". If going to do SDR credibly, organisations will have warts. If there are big warts the sooner these are faced up to the better." "We have received positive payback for our investment in SDR and implementing ISO 14000 in the parent company and all subsidiary companies." Eric Barratt, Group Managing Director, Sanford

23. Attracting and Retaining Employees "The very strong company-wide staff support surprised us. For many the SDR process is a tangible benefit in working for Meridian." Meridian Energy

24. Improving Customer Sales and Loyalty "A necessary process to measure company against company and thus ensure a level playing field". Rob Fenwick, Managing Director, Living Earth

25. Growing Supplier Commitment

26. “Because it is important to me and the credibility of my company, I am trying to ensure that our first Triple Bottom Line report does not preach and has information that gives a true snapshot of where we really are at in regards to sustainability. I also want our report to clearly state that this is a first step, and be sure that our stakeholders understand that we are asking them to help us become sustainable and hold us to account by setting benchmarks that we will be measured by in future years. Small business needs to understand that this is a journey, not a destination.” Robb Donze, CEO, Interface Agencies.

27. Contributing to Environmental Sustainability “We simply realise that the environment is our most important asset. Everything we do must aim to protect that asset. If we tamper with the soil or alter the climate – we don’t have a business”. Richard Riddiford, CEO, Palliser Estate Wines of Martinborough

28. Strengthening Community Relations The government's efforts internationally are matched here in New Zealand... by the emergence of the New Zealand Business Council for Sustainable Development which is also committed to promotion of the triple bottom line to ensure that environmental and social considerations are weighed in decision making alongside the economic considerations … In the private sector, here and abroad, leading edge firms are finding that social and environmental responsibility goes hand in hand with brand image and market positioning in the twenty-first century.” Prime Minister, Rt Hon Helen Clark.

29. For more information visit our websites nzbcsd.org.nz wbcsd.org