1 FRP: a tool for measuring and improving facility sustainability performance National Environmental Partnership Summit May 9, 2006 Beth Ginsberg, Ceres

2 Topics  Ceres and the Facility Reporting Project (FRP)  Overview of FRP Sustainability Reporting Guidance  Facility Reporting Pilot Test  Partnerships with Government Agencies

3 What is Ceres?  U.S. coalition of influential environmental NGOs, labor, and investors (85 organizations)  A network of more than 70 corporations that have endorsed the Ceres Principles  The oldest (1989) and most trusted environmental code of conduct in U.S.  The convenor, with UNEP, of the Global Reporting Initiative (GRI)

4 Selected Ceres Companies  American Airlines  Aveda  Bank of America  Baxter International  Ben & Jerry’s Homemade  Coca-Cola  Consolidated Edison  Ford Motor Company  General Motors  Interface  ITT Industries  Nike  Northeast Utilities  Saunders Hotel Group  Sunoco  YSI, Inc.

5 Ceres Coalition (selected members)  ISIS Asset Management  New York City Employee Retirement System  Sierra Club  Social Investment Forum  SustainAbility  Trillium Asset Management  Walden Asset Management  World Wildlife Fund U.S.  AFL-CIO  Citizens Funds  Connecticut State Treasurer’s Office  Domini Social Investments  Environmental Defense  Friends of the Earth  Interfaith Center on Corporate Responsibility

6 Ceres provides companies  Stakeholder feedback on environmental & sustainability reporting  Dialogues with key stakeholders on leading-edge sustainability issues  Recognition for leadership (Reporting Awards, Other communications)  Annual Conference –Education/ networking

7 Global Reporting Initiative  a multi-stakeholder process and independent institution  Sustainability Reporting Guidelines for voluntary reporting on the economic, environmental, and social dimensions of activities, products  800+ companies reporting worldwide  GRI “G3” guidelines just released- refined indicators, reporting process and more tools, electronic report format

8 Why standardize reporting? Companies receive diverse information requests Stakeholders receive incomplete information A generally-accepted reporting framework developed through a multi-stakeholder process Source: GRI

9 What is the Facility Reporting Project (FRP)? The FRP is multi-stakeholder initiative to develop a generally-accepted, consistent, comparable and credible sustainability reporting framework. The FRP’s main product is a standardized guidance for companies and other organizations to report on the environmental and social performance of manufacturing and other facilities.

10 FRP Supports: 1.Public reporting and public trust 2.Performance-focused regulatory & voluntary approaches, including: Performance Track programs Environmental management systems 3.Facility awareness of external effects 4.Compatibility with Global Reporting Initiative

11 How FRP Came About- Growing Sense of Need in Many Places  Discussions at Global Reporting Initiative (GRI) meetings about need for facility-level metrics  Multi State Working Group indicated need for credible and comparable facility-level performance metrics linked to EMS  Performance Track programs (federal and state) seeing need  Tellus and Ceres pursue funding

12 Why Report at the Facility Level?  Current public information on facility performance is fragmented, out of context  Need integration of data and “story”  Workers, communities, regulators, citizens seek accountability  Opportunity for more comprehensive reporting and community engagement  Opportunity for learning, performance and productivity gains  Interest in corporate benchmarking and best practices

13 FRP Guidance designed to be:  Voluntary  Initially US-focused  Compatible with GRI  Useful to public, private sector & govt.  Legitimized by multi-stakeholder formulation and feedback  Informed by best current knowledge and practice  A dynamic product that improves and evolves with experience

14 6 key parts of the FRP Reporting Guidance  Reporting principles  How to prepare a report  Facility overview  Economic indicators  Environmental indicators  Social indicators Contents of the Facility Report

15 Facility Overview  Facility Profile  Report Scope  Facility Organizational Context  Include stakeholders and how engaged

16 Environmental Indicators  Materials  Energy  Water  Biodiversity/Land Use  Emissions, effluents, and waste  Transport  Community Impacts of odor, noise, dust, traffic, lighting, vibration

17 Economic Indicators Describe and quantify:  Customers  Suppliers  Employees  Payroll & Benefits  Providers of capital  Public sector  Subsidies, Taxes, Community donations  Infrastructure investments

18 Social Indicators  Labor practices and decent work  Human rights  Society  Product responsibility

19 FRP Pilot Test Activities  Suggested sustainability indicators for reporting environmental, social and economic performance;  Guidance to assist in the reporting process;  Complementary tools to aid stakeholder engagement and identification of performance indicators  Online resources for case studies and examples of data presentation

20 Current FRP Participants Initial working group  Ford Motor Company  Timberland  Rockwell Collins  YSI, Inc.  New Hampshire Ball Bearings  Northside Foods  Harwood Products  Louisville & Jefferson MSD EPA working group  La-Z-Boy Utah  National Renewable Energy Laboratory  Infineon Technologies  Lockheed Martin  Louisiana Pacific  Delta Faucet

21 FRP Pilot Test Timeline  Spring 2005: Launch at Ceres conference in Boston  Summer 2005: Pilot startup and group conference calls  Summer/ Fall 2005: Trainings at individual facilities, more company recruitment. 1st facility report published  Fall/ Winter 2006: Facilities collect data, engage stakeholders, draft reports; New state and government agency partnerships bring additional facilities on board  Spring/ Summer 2006: Reports begin to be published

22 Pilot Test Participation Benefits  Preparatory workshop, peer conference calls and support, website  On-site technical and reporting assistance  Assistance with stakeholder strategy, community and employee engagement  Access to best practices in facility accountability  Publicity for commitment and effort

23 Government partnerships  FRP can support performance-focused regulatory and voluntary programs  Can help government agencies looking to move corporate partners forward on sustainability  Current support from:  EPA National Center for Environmental Innovation (NCEI)  Washington Department of Ecology  Georgia P2AD program Looking for additional agency partners!

24 EPA Supports FRP Pilot Test  EPA funds to support 7 Performance Track facilities piloting the environmental component of the FRP Guidance  Facilities will receive no-cost technical assistance to create comprehensive facility-level environmental reports  EPA will use lessons to explore relationship between environmental data collection, reporting, and performance improvement

25 Washington Ecology utilizes FRP metrics Fall 2005: Launch of partnership with State of Washington Department of Ecology  Ecology putting together benchmark analysis of pulp and paper mills’ environmental impacts  Exploring opportunities to incorporate facility-level reporting and stakeholder engagement in future public engagement efforts.

26 Georgia p2ad partnership Launch of partnership with State of Georgia P2AD program at MSWG meeting in September 2005  P2AD interested in convening regionally-focused pilot test working group  Multi-stakeholder process  Possible integration of facility-level reporting and accompanying metrics into performance-based program based on external feedback

27 Questions & discussion  About pilot test opportunities?  About state and other government partnerships? Contact Beth Ginsberg at Ceres to join: x21 or For more information about the Facility Reporting Project visit: www facilityreporting.org. Thank you!