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Presentation by Iris Van der Veken and Yves Garenne: "How to start your COP". Workshop organized for the members of the Global Compact Network Belgium on May 6th 2010.
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COP SEMINAR
6 May 2010
UN Global Compact Network Belgium
Global Compact Network Belgium6/5/2010
1
Welcome
Iris Van der Veken
Chairman UN Global Compact
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Agenda
• Welcome: brief update
• Introduction speaker by Stephan Vanhaverbeke
• Session on the challenge of implementing COP
• Case Study Rosy Blue
• Discussion – Q&A
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United Nations Global Compact
The United Nations Global Compact is the world’s largest
voluntary corporate citizenship initiative which is committed to
aligning the operations and strategies for all type of
organizations with the universally accepted principles of the
UN covering human rights, environmental protection, labour
standards and anti-corruption.
4
What is United Nations Global Compact?
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United Nations Global Compact
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Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights, andPrinciple 2: Businesses should make sure they are not complicit in human rights abuses.
Human rights
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour;
Principle 5: Businesses should uphold the effective abolition of child labour; andPrinciple 6: Businesses should uphold the elimination of discrimination in respect of
employment and occupation.
Labour standards
Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: Businesses should undertake initiatives to promote greater environmental
responsibility; and Principle 9: Businesses should encourage the development and diffusion of environmentally
friendly technologies.
Environment
Anti-corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Main Objectives of our Network
• Global Compact Network Belgium (GCNB)
• Connect the current Belgian participants to the global network
• Incorporate CSR practices based on the 4 pillars of UNGC with other initiatives: joined efforts
• Improve CSR reporting standards
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Promote a culture of compliance and the rule of law by providing systematic ways to help improve day-to-day conduct of business
Current Status Participants GCNB
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By end 2011 we aim to
increase our membership
by at least 15 %
Activities Q2 planned
• Today: COP Workshop
• May 11th: Workshop Human Rights in cooperation with KAURI
12.30 – 16.00, Location ONDD, Montoyerstraat, 3000 Brussel
• June 1st: Launch new website
• June 24-25th: Leaders Summit New York
• July 5 or 6th: Debriefing and update of the results of the Summit to
all the Belgian participants; date & location to be confirmed
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COP as part of your CSR implementation strategy
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COMMIT
MEASURE
IMPLEMENT
COMMUNICATE
DEFINE
ASSESS
About COP – Communication on progress
• Format for COP is flexible, but 3 key elements
– Statement by the CEO: clear commitment
– Description of practical actions
• During the first five years of participation, each COP must address
at least two of the UN Global Compact’s four principle issue areas,
while all four must be addressed after five years.
– Measurement of outcomes
• Identify targets
• Define performance indicators
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Notable COP
Since 2004 to highlight and recognize outstanding
Communications on Progress (COP) with respect to the
quality and comprehensiveness of the information they
provide.
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COP Workshop by Yves Garenne
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Sustainable business
• Needs strategy including CSR
• “Sustainable development” compliant
• Stakeholder dialogue capabilities
• Value chain control
• Long term commitment
• An evaluation system
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The 3 systems
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Finance
Operations CSR
© Ecophanie
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Sustainable business
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Vision / mission
Strategic review
Market input
Stakeholder needs Stakeholder map
Sphere of influence
SD risks assessment
Goals / Action plan
CEO and board values
CEO and board values
CSR Toolbo
x
© Ecophanie
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CSR toolbox
Repository Repository
Guidelines Guidelines
Standards Standards
Management Management systemsystem
Insurance Insurance protocolsprotocols
ReportingReportingMethodologyMethodologyCommitmeCommitmentnt
GRIGRIGRIGRI
AA1000AA1000
ISO14000, ISO22000, ISO14000, ISO22000, OHSAS18000...OHSAS18000...
Global Global CompacCompac
tt
Global Global CompacCompac
tt
SA8000SA8000
ISO26000ISO26000ISO26000ISO26000
SD21000SD21000
ILOILO
OECDOECD
Agenda 21Agenda 21
© Ecophanie
United Nations Global Compact
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Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights, andPrinciple 2: Businesses should make sure they are not complicit in human rights abuses.
Human rights
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour;
Principle 5: Businesses should uphold the effective abolition of child labour; andPrinciple 6: Businesses should uphold the elimination of discrimination in respect of
employment and occupation.
Labour standards
Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: Businesses should undertake initiatives to promote greater environmental
responsibility; and Principle 9: Businesses should encourage the development and diffusion of environmentally
friendly technologies.
Environment
Anti-corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
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Global compact does'n'donts
• It is not a communication tool
• It is the result of a strategic approach and one of the output of the strategic process
• Be ambitious but realistic
• Do not misuse transparency and communication
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Communication On Progress
• Looks like a mountain ?
• Identify the key stakeholders inside your sphere of influence (ISO26000)
• Stakeholder dialogue
• Keep it simple, it’s just an output of your self assessment system
• BtoC or BtoB adaptation
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Useful or not ?
20
Values
Business
CEO and Board value
system consistency
Customer expectation
s
Address UN MDG’s
Public equity : sustainable index ?
Private equity : SRI investors of LBO ?
Profit
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SEC guidelines and warnings
“These [GRI] and other reporting mechanisms can provide important information to investors outside of disclosure documents filed with the Commission. Although much of this reporting is provided voluntarily, registrants should be aware that some of the information they may be reporting pursuant to these mechanisms also may be required to be disclosed in filings made with the Commission pursuant to existing disclosure requirements.”
SECURITIES AND EXCHANGE COMMISSION (Commission Guidance Regarding Disclosure Related to Climate Change) 2 february 2010
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Basic COP
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Basic COP
• Content– Global compact implementation
– Ideally strategies and action plans
– Encouragement to use GRI guidelines
• Format– Preferably, integrated in CSR report or annual report
– Written in the Stakeholders’ languages
– Web based COP are welcome
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Basic COP (Cont’d)
• Minimum requirements– CEO Statement
– During the first 5 years : activities or policies for at least 2 of the 4 issues (human rights, labour, environment, anti-corruption)
– After 5 years : full implementation of the 4 issues. Otherwise you’ll have to explain…
– Measurement of outcomes (targets, KPI, measure outcomes)
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Basic COP sharing
• Stakeholders– A formal sharing with internal and external stakeholders
• Global compact1. Submit electronic version
2. Acceptance
3. Publication on GC website
• Deadline– One year to publish the 1st COP
– Then 90 days, if necessary, to provide the missing information
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Basic COP Sanctions
• Sanctions– Fail to meet the COP deadline => “non communicating”
participants
– After one year of “non communicating” : publicly delisted
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Notable COP
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Notable COP Program
• At least : basic COP requirements• Statement for GC Support, at least 3 criteria among :
– CEO statement or chairman– Statement is part of COP, not stand-alone– Reasons and/or benefits for GC Support– Statement is linked with major actions / outcomes in
implementing the Global Compact principles and/or with major actions and outcomes in undertaking partnership projects.
– Description of active participation at UN Global Compact events or in local networks and/or support for the initiative was expressed in public interviews or public speeches
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Notable COP Program (Cont’d)
• Clear and detailed description of practical actions taken in implementing the UN Global Compact principles and/or in undertaking partnership projects in support of broader UN goals (a minimum of four criteria must be met in this category).
– Commitments and actions are linked to business relevance of UN Global Compact principles (“materiality”).
– Reflection on the company’s sphere of influence, such as supply chain, customers, local communities, etc. and reporting boundary.
– UN Global Compact principles are reflected in management systems, such as policy and strategy documents, monitoring system and daily processes.
– Actions are integrated into core business processes (not a stand-alone project, not philanthropic).
– Actions are fully described in a way that allows readers to learn from and replicate them (e.g. no bullet point or check box descriptions).
– A future plan of action (for the following year) has been outlined.– Description of partnership projects in support of broad UN goals
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Notable COP Program (Cont’d)
• Measurement of outcomes that allows for checking progress (a minimum of four criteria must be met in this category).
– Performance indicators are clearly defined or a full set of standard indicators is used (GRI, Ethos institute etc.).
– Performance is shown for several years, allowing to check progress.
– Performance is compared to peer companies or industry sector average.
– The report presents positive and negative aspects of the organization’s performance to enable a reasoned assessment of overall performance.
– Targets for the following year(s) are specified.
– The business case is made, i.e. activities and outcomes are linked to financial data.
– Performance relates to the ten principles of the UN Global Compact, even if the emphasis is placed in the implementation of some specific principles.
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Notable COP Program (Cont’d)
• Reporting process ensures reliability, clarity and timeliness of information and includes stakeholder dialogue (a minimum of three criteria must be met in this category).
– Assurance: Information and processes used in the preparation of the COPs are externally assured by peer review, stakeholder audits/consultations, in-depth third party assurance based on standards, etc.
– Dissemination and stakeholder engagement: COP is actively shared with relevant stakeholders such as employees, shareholders, suppliers, customers, local communities, financial analysts, civil society organizations etc. and special efforts for stakeholder engagement are described.
– Clarity of COP: Information is made available in a manner that is understandable and accessible to stakeholders using the report.
– Timeliness of COP: The publication of the COP is aligned with the sustainability reporting schedule or the COP is posted on the UN Global Compact website no later than six months after the end of reporting period.
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GRI and Global Compact
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GRI history
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GRI, a definition
A reporting system based on the core
issues of sustainable development :
environment, social and governance
(eventually culture…)
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What is GRI ?
• Comprehensive set of guidelines
• Multi-stakeholder community
• Global credibility and acceptance
• Widely-used
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Report criteria
Report content Materiality Stakeholder Commitment Contextual / boundaries Comprehensive
Quality insurance Balance Benchmark Precision Timeliness (3 years) Reliability Clarity
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Application levels
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Management Management approachapproach
Performance indicatorPerformance indicator
C C+ B B+ A A+C C+ B B+ A A+
NADMA for
each indicator
DMA for each
indicator
At least 10 At least 20All the core indicators
(41)
+ third party audit
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The indicators’ rules
• Materiality
• Boundaries
• Growth tolerance
• Timeliness over 3 years
• Long term commitment
• And a reliable BI…
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GRI procedure
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Goals / Action plan
Stakeholders' needs
GoalsKPI
Continuous Improvement
Stakeholder dialogue
Rosy Blue Case Study
Our Corporate Structure
Group Associates CEO
Audit Committee
Corporate Affairs Committee
AML &Anti-Corruption
Committee
CSR Advisory Board
Family CouncilBelgium
India
UAE
USA
Hong Kong
Israel
Japan
South Africa
Thailand
Sri Lanka
Armenia
China
Russia
Luxembourg
Personal Advisorto the CEO
Group Executive Management
Manager Corporate Affairs
Global
Global AML Compliance
Manager
“To be a global leader in creating and fulfilling consumer desire for diamonds.”
Vision & Corporate Philosophy
We value fair and transparent business practices.
We deliver trust throughout the supply chain.
We contribute to society where we work and live while
respecting the local customs and cultures.
We promote diversity, accountability and human
rights.
We continue to build health & safety programs –
taking that extra step.
We acknowledge the seriousness of global
environmental issues and act to protect the
environment.
Our Core Values
Accountability
IntegrityDiversity
44
Our global presence - 14 countries
45
Our people
Current business model
RETAILER
Since we are client of the 4 main mining houses, we are among the largest buyers of rough diamonds in the market in terms of rough purchases.
Sources of Rough Diamonds
• CRITICAL consumers• Diamonds are an ever lasting symbol of
LOVE – EMOTIONS – TRUST • It provides store of VALUE• CONTINUED CONSUMER CONFIDENCE in our products
is essential• It’s all about doing things RIGHT!
48
Within every change there is an opportunity for dynamics
49
Diamonds and intangible value
• Our today’s ACTIONS will BUILD tomorrow• The Industry has EVOLVED in the last decade• Gone are the days of CONFLICT DIAMONDS – that inflicted
human pain – 180 degrees turn around• The Industry can take GREAT PRIDE in its ACHIEVEMENTS• At a very early stage RB REVIEWED
all our business activities and processes.• Today: throughout the supply chain we are adopting MODERN
ETHICAL STANDARDS
50
Rosy Blue Commitment
General CSR Initiatives
• UN Global Compact
Industry wide Initiatives
• Responsible Jewellery Council
Proprietary Corporate Initiatives
• Rosy Blue Internal CSR Model• Best Practice Principles• Business Excellence Model• Wal-Mart
National Laws and Regulations
International Laws and RegulationsKimberley Process & System of Warranties
CONSUMER CONFIDENCEVoluntary Initiatives
ONGOING COMMITMENT
51
Key Initiatives
Business responsibilities
Social responsibilities
Environmental responsibilities
Product integrity
• De Beers Best Practice Principles • Rio Tinto Business Excellence Model• Wal-Mart• Responsible Jewelry Council• United Nations Global Compact• Rosy Blue Compliance model
52
Key Initiatives
Signifying our COMMITMENT to operate in RESPONSIBLE and SUSTAINABLE manner
53
United Nations Global Compact
ROSY BLUE SIGNSUN GLOBAL COMPACT200
8
ACTIONS:• JUNE 2008: ROSY BLUE SIGNED THE UN GLOBAL COMPACT• December 10th 2008: Rosy Blue supports the
60TH ANNIVERSARY OF THE UNIVERSAL DECLARATION OF HUMAN RIGHTS
• April 29th 2009: 2008 CSR Report is SUBMITTED as COP (Communication on Progress) on the UN Global Compact site
• May 1st 2009: RECOGNIZED as COP• Second CSR Report June 18th 2010
54
United Nations Global Compact
55
Global Corporate Compliance Team
Local CSR-AML Compliance Officers
North America (1)
Europe (3)
Africa (2)
Asia (9)
Global Corporate Affairs Committee (5)
Manager Corporate Affairs Global
CEO
Executive Management
Group Associates
Global AMLCompliance
Manager
Global Corporate Affairs Department (4)
56
FOLLOW UP
REPORTING COMMUNICATION & IMPLEMENTATION
PLANNING
Continuousfollow up
Rosy BlueCSR Strategy
Dedicated Group Associates & Group
Executive Mananagement
Implementation of Corrective Actions
Rosy Blue Standards
Report to the Group Associates &
Group Executive Management
Corrective Actions
Global Corporate Affairs Department
Documentation review + Pre audit ‑
on site‑Implementation
Local CSR-AML Compliance
Officers
Global Corporate
Affairs Department
Annual CSR Report
Answer Compliance Questions
Follow up on Legislation
Collect Data & Statistics
Organize Seminars &
Training Sessions
Top downBottom up
Communication
Develop Training Manuals
Develop & Update Policies & Procedures
External Communication
Strengthening the
compliance model
57
CSR information management system
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Key Performance IndicatorsQuantifiable and measurable results
Environment
Long term strategy
CSR Business Partners
Workplace Health & Safety
Community
• CSR VISION announced• CSR EXTRANET developed across the Group• INTERNAL CONTROL SYSTEM through documentation
review and pre-audit on-site visits• MEMBERSHIP UN GLOBAL COMPACT• Rosy Blue E-TRAINING ACADEMY established
59
Main achievements in 2008-2009
• ACTIVE INVOLVEMENT in RJC• STRONG AWARENESS programme on HEALTH &
SAFETY• START AWARENESS programme ON ENVIRONMENTAL
IMPACT• REVISED CODE OF CONDUCT and all policies and
procedures• CSR TRAINING across the Group
60
Main achievements in 2008-2009
• EXTERNAL CSR ADVISORY BOARD established– Mr. Thomas Leysen
Chairman Umicore, Chairman of the Federation of Enterprises in Belgium– Baron Luc Bertrand, Chief Executive Officer, Ackermans & van Haaren– Mr. Sonjoy Chatterjee, Director, ICICI Bank– Mr. Tony Phillips, Former Chief Executive Officer, Barloworld
• REVIEW MEETING APRIL 3RD External CSR Advisory Board – UAMS – CEO, COO, CFO Rosy Blue
• FIRST CSR REPORT ROSY BLUE GROUP published May 4th
• COP UNITED NATIONS
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Main achievements in 2008-2009
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Internal CSR auditsINTERNAL ON-SITE AUDITS
2007 2008
BELGIUM
USA
ARMENIA
CHINA
HONG KONG
THAILAND
SRI LANKA
RUSSIA
SOUTH AFRICA
INDIA
ISRAEL
JAPAN
UAE
ON-SITE INTERNAL AUDITS Company tour + checklist Process & procedure control
AML procedure Know Your Customer procedure Cash transactions procedure Business records relevant to AML/CFT compliance Kimberley process and System of Warranties procedure Declaration on invoices Disclosure procedure Procedure to contractors Employment practices Health & Safety practices Human Rights practices Open communication Environmental Practices
Documentation review: supporting documents Interviews with Management and staff Training records Conclusion audit Corrective Actions Follow up
63
Internal CSR audit reporting
PLAN
NIN
G
CSR Corporate Extranet
Group Associates
Develop & update Policies & Procedures CSR initiatives
Global Corporate Affairs Department
Collect Data & Statistics
Follow up CSR Market
Information
Facilitation by local CSR-AML compliance officer
Upload supporting documents
Verification documentation by Corporate Team
Compliant Corrective actions
Pre-audit visitsOffices & factories
Report to Group Executive
Management
Report to Group Executive
Management &Group
Associates
Follow up Legislation
Training, Research &
Development
Follow up on corrective
actions
Final report issued by Group
Associates
Compliant Corrective actions
External audits
Report to Group Executive
Management
Report to Group Executive
Management &Group
Associates
Follow up on corrective
actions
Final report issued by Group
Associates
Group Associates review
PRE-
AUD
ITRE
PORT
ING
MA
NAG
EMEN
T RE
VIEW
64
External CSR audits by SGS
BELGIUM
USA
ARMENIA
CHINA
HONG KONG
THAILAND
SRI LANKA
RUSSIA
SOUTH AFRICA
INDIA
ISRAEL
JAPAN
UAE
CSR AUDITS ON-SITE ASSESSMENT
2005/2006 2007 2008
4INF
2INF
3INF
CSR AUDITS EXTERNAL DESKTOP REVIEW
2005/2006 2007 2008
1INF
5INF
1INF 2INF
4INF 4INF
1INF
“Rosy Blue have been an active participant of the BPP programme since its inception in 2005. NO MATERIAL BREACHES
HAVE BEEN FOUND TO DATE and they are COMPLIANT with the requirements of this programme, having taken
PROMPT ACTION to close out any issues found in our sample assessments.“
Mrs. Effie Marinos
CSR Solutions Manager - EAME
65
SGS
• Time of global ECONOMIC UPHEAVAL and UNCERTAINTY
• Eventhough we are in TOUGH ECONOMICAL TIMES and facing enormous PRESSURE TO CONTROL COSTS, we will CONTINUE TO MOVE FORWARD in compliance – CSR IS A LONG TERM ENDEAVOR
• AVOID DUPLICATION IN REPORTING!
Challenges Ahead
• QUANTIFIABLE and MEASURABLE results• A major challenge is to WORK CLOSELY with ALL OUR
STAKEHOLDERS throughout the SUPPLY CHAIN to focus on CSR and EVOLVE to sustainable development.
• Together we can achieve a more SUSTAINABLE FUTURE
WE WELCOME YOUR [email protected]
Challenges Ahead
Time for Group Discussion
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Connecting to the Global Compact
www.unglobalcompact.org
www.globalcompact.be
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Thank you for your attention