Country-Level CSR Monitoring System National Workshop Warsaw, 17 September 2010 United Nations Development Programme

The context

There is more to CSR than companies and the business case Governments/states have a big role to play as well. So what can they do?

Governments can do all the things that companies do Care about the health, safety and general well-being Motivate employees Employ disabled/minority workers Pay attention to natural resources Apply criteria to investment decisions and supply chain

Governments can create the right framework conditions for CSR No substitute for regulation CSR can flourish through the implementation of the right enabling policies And more...

CSR is a key priority for the EU

EU policy rests on 3 pillars CompetitivenessEnvironmental protection Social inclusion

The crisis did not bring an end to CSR European Commission [2010] CSR is more relevant than ever in the context economic crisis. It can help to (re)build trust in business, which is vital for the health of Europe's social market economy. It can also point the way to new forms of value of creation based on addressing societal challenges, which may represent a way out of the crisis.

How we developed the system…

Key principles Keep it manageable Keep it objective and transparent Anchor it in existing systems

Rating methodology Company score CSR categories Indicators leader

Introduction to each indicator i. Why is it important ii. How it has been done elsewhere iii. What the indicator shows iv. Where to obtain the relevant data v. How to interpret / use the data vi. How the scoring works

SCORECARD Governance and policy 1. Existence of a published sustainable development (SD) or CSR national strategy 2. Existence of a named government department or other government body leading on CSR issues. 3. Existence of specific legislation to promote the wide adoption of good CSR practices 4. Percentage of green procurement as part of total public sector procurementSUBTOTAL Stakeholder 5. Percentage of active National Global Compact and other CSR networks members engagement and communication 6. Percentage of business associations having implemented sectoral CSR-related activities and/or tools 7. Percentage of local companies that do regular structured CSR/SD reporting (Top 100 by turnover)SUBTOTAL Civic Society8. Percentage of higher education institutions offering specific programs and/or courses in CSR/ sustainable development and/or ethics 9.Number of mentions of CSR concept in public media / year SUBTOTAL Environment 10. Percentage of listed companies using environmental management systems 11. GHG emissions and renewable energy use 12. Total environmental protection expenditureSUBTOTAL Labour issues 13. Percentage of listed companies using labour management systems 14. Percentage of employees covered by collective bargaining agreements (CBAs) in top 100 companies by number of employees 15. Gender equality in business and government 16. Fatal accidents/ 100,000 workersSUBTOTAL Transparency and the 17. Level of corruption (as indicated by Transparency International) business environment18. Existence of SRI activity SUBTOTAL TOTAL

1. Existence of a published sustainable development (SD) or CSR national strategy Criteria / description of indicator CSR/SD national strategy prepared through a consultative process with main stakeholders and adopted by the respective government body (e. g. Council of Ministers); Existing action plan and national budget; Existence of a national body, e. g. a National Consultative Council constituting of all stakeholders which coordinates the elaboration, promotes the cooperation among the stakeholders, and monitors and evaluates the implementation of the state CSR policy. Definition of a sustainable development strategy: According to Chapter 8 of the UNs Agenda 21, the goal of a national SD strategy is to build upon and harmonise the various... economic, social and environmental policies and plans that are operating in the country. Applying this more specifically to CSR, one can begin to understand a CSR strategy as providing a framework for the private sector to fit into the sustainable development strategy. This would work by facilitating the development of policies and plans that businesses have already developed and offering guidance for businesses that have yet to enter this arena. The Danish government provides a good example of a national CSR strategy and how it can be used to support existing CSR initiatives and develop new CSR initiatives. The link to the Danish system is provided in the country report. TOTAL SCORE: TOTAL AVALIABLE SCORE: 7.5 pts Data sources & contacts Evidence in this category can be a report, a web page, or any sort of document covering CSR or sustainable development The information can be obtained by contacting – by phone or in person – the relevant government department(s) and/or online research. Importance: It is important for government to take the lead in creating CSR incentives for business. This involvement raises public awareness of the issue and raises the significance of CSR within the policy/ government sphere. 2.5 pts Governance and policy

2. Existence of a named government department or other CSR government body. Criteria / description of indicator A stand-alone department or body within government whose status and functions are fully dedicated to developing and coordinating CSR/SD strategies and policies. Relevant data to collect includes: a unit dealing with CSR a particular person/ particular people dealing with CSR the size of a CSR team any dedicated department budget used on the CSR function as a proportion of the overall department or ministry budget TOTAL SCORE: TOTAL AVALIABLE SCORE: 7.5 pts Data sources & contacts Evidence in this category can be a report, a web page, or any sort of document covering CSR or sustainable development. The information can be obtained by contacting – by phone or in person – the relevant government department(s) and or online Importance: This indicator establishes a base level of awareness that a government should have in order for CSR and sustainable development to gain credence within a society. 7.5 pts 7.5 Governance and policy

3. Existence of specific legislation to enable the wide adoption of good CSR practices Criteria / description of indicator The series of eligible legislative areas are listed below. The scoring system is as follows: KEY 1 of the laws 2 of the laws 3 of the laws 4 of the laws 5 + of the laws (SOURCE: European Parliament resolution of 13 March 2007 on corporate social responsibility: a new partnership (2006/2133(INI)) TOTAL SCORE: TOTAL AVALIABLE SCORE: 5 pts Data sources & contacts Documentation can be collected by tracing the number of amended and/or drafted legal acts that reflect the provisions of CSR promotion. This could be anti-corruption legislation and/or reporting legislation pertaining to sound accounting standards. The information is to be found in published legal act drafts and amendments, but it may also be useful to establish contact with government experts who can assist on a regular basis (annually). Importance: While the European Union has established that CSR should remain a voluntary initiative and excessive legislation is not desirable, it is important for governments to create an environment in which businesses can adopt CSR practices. In particular, it is important for a directive to come from government in a region where there is a tradition of government leadership in driving policy initiatives. 1 pt 5 2 pts 3 pts 4 pts 5 pts

Governance and policy 4. Percentage of green procurement as part of total public sector procurement Criteria / description of indicator National Action Plan (NAP) developed and adopted by relevant public sector bodies. In line with EC expectations, the NAP contains: an assessment of the existing situation; ambitious targets for the next three years; a clear statement of the measures taken to achieve the targets; an understanding that the NAP should be revised every three years Additional points available when environmental criteria applied to: 10% - <30% of total public procurement 30% - <50% of total public procurement 50% - <70% of total public procurement 70% of total public procurement TOTAL SCORE: TOTAL AVALIABLE SCORE: 5 pts Data sources & contacts We are looking for a statistic showing the percentage of public procurement that incorporates environmentally responsible criteria. These estimates should be provided by the Government Public Procurement Office or its equivalent. Some contacts for each individual country are available in Apendix.1 Importance: This indicator is quantifiable and embedded in the way that government does business. Green public procurement means that public purchasers take account of environmental factors when buying products, services or works Every year, the European public authorities spend the equivalent of 17% of the EU GDP on public procurement The sheer size of government expenditure can play a pivotal role in shaping production and consumption patterns towards sustainability. The EC encourages Member States to draw up publicly available National Action Plans (NAPs) for greening their public procurement. The EC, together with stakeholders, has developed common GPP criteria for 10 products and services. 1 pt 5 2 pts 3 pts 4 pts 1 pt +

SCORECARD Governance and policy 1. Existence of a published sustainable development (SD) or CSR national strategy 2. Existence of a named government department or other government body leading on CSR issues. 3. Existence of specific legislation to promote the wide adoption of good CSR practices 4. Percentage of green procurement as part of total public sector procurementSUBTOTAL Stakeholder 5. Percentage of active National Global Compact and other CSR networks members engagement and communication 6. Percentage of business associations having implemented sectoral CSR-related activities and/or tools 7. Percentage of local companies that do regular structured CSR/SD reporting (Top 100 by turnover)SUBTOTAL Civic Society8. Percentage of higher education institutions offering specific programs and/or courses in CSR/ sustainable development and/or ethics 9.Number of mentions of CSR concept in public media / year SUBTOTAL Environment 10. Percentage of listed companies using environmental management systems 11. GHG emissions and renewable energy use 12. Total environmental protection expenditureSUBTOTAL Labour issues 13. Percentage of listed companies using labour management systems 14. Percentage of employees covered by collective bargaining agreements (CBAs) in top 100 companies by number of employees 15. Gender equality in business and government 16. Fatal accidents/ 100,000 workersSUBTOTAL Transparency and the 17. Level of corruption (as indicated by Transparency International) business environment18. Existence of SRI activity SUBTOTAL TOTAL

Questions Peter de Graaf Senior Partner Acona