SUSTAINABILITY AND THE BOTTOM LINE

Presentation to The RMLA Auckland Branch

27th June 2002

Rodger SpillerExecutive Director NZBCSD

Providing business leadership as a catalyst for change toward sustainable development, and

promoting eco-efficiency, innovation and responsible entrepreneurship.

Sustainable Development

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

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.

SD encompasses three linked elements:

• Economic/Profit• Environmental/Planet• Social/People

February 2000

ForEver

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

Our Aims

• Business leadership

• Demonstrate best practice

• Policy development

• Global outreach

Our Members3M New Zealand LtdBP Oil NZ LtdCity Care LtdDeloitte Touche TohmatsuFletcher Building LtdFonterra Co-operative Group LimitedHubbard Foods LtdInterface AgenciesLandcare ResearchMeridian EnergyMighty River Power LtdMilburn New Zealand LtdMinter Ellison Rudd WattsMoney Matters NZ LtdMorel & CoNatural Gas CorporationNIWAPalliser Estate Wines of Martinborough LtdPort 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

"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, Fonterra8 April 2002

BCSD Gulf of Mexico

BCSD Latin America

BCSD Mexico

BCSD Argentina

BCSD Venezuela

BCSD Colombia

BCSD Costa Rica

BCSD CroatiaBCSD Croatia

BCSD Czech RepublicBCSD Czech Republic

BCSD El Salvador

BCSD Honduras

BCSD Indonesia

BCSD MalaysiaPBE Philippines

IEF South Africa

EFZ Zimbabwe

BCSD Thailand

CII India

BCSD PolandBCSD PolandVernadsky Foundation RussiaVernadsky Foundation Russia

APEQUE Algeria

BCSD Brazil

THE REGIONAL NETWORK - BCSDs and Partner Organizations -

FE Spain

FFA Spain

EPE France

BCSD Austria

BCSD NorthSea Region

CGLI USA/Canada

WASIGW.Australia

BCA Australia

BCSD New Zealand

BCSD Mongolia

BCSD Taiwan

Examples of WBCSD Projects

DEDICATED TO MAKING A DIFFERENCE

DEDICATED TO MAKING A DIFFERENCE

• Sustainable Development Reporting

• Climate Change

• Zero Waste

• Sustainable Consumption

• Successful Schools

• Youth Employment

Current NZBCSD Projects

NZBCSD SDR Project

Lead NZ business into Sustainable Development Reporting (SDR)

Objective:

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.

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.

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 ProcessSanfordBP NZHubbard FoodsThe Warehouse

Case studies of businesses with no experience in the SDR processCity CareInterface AgenciesTelecomUrgent Couriers

Why Report?

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.

"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

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

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

Growing Supplier Commitment

“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.

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

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.

For more information visit our websites

nzbcsd.org.nz

wbcsd.org