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FRP: a tool for measuring and improving facility

sustainability performance

National Environmental Partnership Summit

May 9, 2006

Beth Ginsberg, Ceres

www.facilityreporting.org

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Topics

Ceres and the Facility Reporting Project (FRP)

Overview of FRP Sustainability Reporting Guidance

Facility Reporting Pilot Test Partnerships with Government

Agencies

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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)

www.ceres.org

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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.

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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

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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

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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

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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

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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.

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FRP Supports:

1. Public reporting and public trust2. Performance-focused regulatory &

voluntary approaches, including:• Performance Track programs• Environmental management

systems

3. Facility awareness of external effects4. Compatibility with Global Reporting

Initiative

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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

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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

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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

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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

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Facility Overview

Facility Profile Report Scope Facility Organizational

Context Include stakeholders and

how engaged

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Environmental Indicators Materials Energy Water Biodiversity/Land Use Emissions, effluents, and waste Transport Community Impacts of odor, noise,

dust, traffic, lighting, vibration

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Economic IndicatorsDescribe and quantify:

Customers Suppliers Employees

Payroll & Benefits

Providers of capital Public sector

Subsidies, Taxes, Community donations

Infrastructure investments

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Social Indicators

Labor practices and decent work

Human rights Society Product responsibility

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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

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Current FRP ParticipantsInitial 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

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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

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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

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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!

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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

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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.

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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

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Questions & discussion About pilot test opportunities? About state and other

government partnerships?

Contact Beth Ginsberg at Ceres to join:617-247-0700 x21 or ginsberg@ceres.org

For more information about the Facility Reporting Project visit: www facilityreporting.org.

Thank you!