Ecolibrium Consulting

Proposal for EurozTRASH TIMS7317: Corporate Responsibility

19 October 2010

Desma Grice 4147037Kirril Shields 33275909

“Joyce” Hui Hsin Cheng 41304194Sue Wint 41920334

Randall Williams 42160258Christian Schmidt Mandujano 42431284

Table of ContentsA New Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Solution Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3List of References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Ecolibrium aims to provide companies with the ability to prosper financially and competitively by implementing frameworks to enhance society, culture and the environment in given industries by increasing sustainability and managing risk . An outline of Ecolibrium’s core values and key competencies is provided in Appendix A . Implementing corporate responsibility strategies that aspire to address the interest of the company as well as the interests of the greater public good is of utmost importance when developing sustainable goals due to high risks associated in the mining sector

(Banks, 2007; Azapagic, 2004; Mudd, 2007) . Hence, employing a systematic approach in reaching targeted goals is essential for strategic sustainability . Problem identification was conducted by Ecolibrium’s consulting team as part of business analysis to help identify key challenges being faced . By using the Theory of Constraints approach (Bianco, 2006), major management problems have been identified within the corporation and subsequently solutions are proposed to resolve organisational problems and management dilemmas .

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Section 1: A New Direction

Corporate Responsibility

Section 1: A New Direction

Examples of Ecolibrium’s problem identification, solution generation and solution outcomes for projects with Newmont Mining and Australian Panel Tanks is available in Appendix B . The chief problems identified by Ecolibrium within EurozTRASH are outlined in Appendix C . Solutions were ranked on key selection criteria and ranking revealed lack of sustainability assessment and monitoring, lack of sustainability reporting, lack of milestones-short, medium and long-term (the 3 most highly ranked), as well as a lack of CEO commitment, absence of a senior sustainability executive, dismissive use of triple bottom line accounting, lack of

a sustainability framework, and proper management of hazardous pollutants . Probability Ranking Principle (PRP) method was implemented to obtain best possible retrieval where the problems were ranked in order of decreasing probability of relevance and on the basis of its expected overall relevance to the main issue (Gordon, 1992) . Priority matrix (Appendix D) was created and utilized to identify the list of must-dos and helped in the classification of short, medium and long-term solutions . The targets and solutions are provided in this report and are based on best practice .

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Prioritised Issues

Theory of Constraints application has also helped with the facilitation of potential management resolutions . The solutions to resolving short-term corporate impediments/problems include encouraging employees and senior management to attend sustainability educational programs to advance their knowledge in the field, making sure the company hires a competent sustainability specialist to analyse, oversee and execute goals, to offer transparency

within the company and in the public sphere (i .e . stakeholders, customers, communities, government) for effective feedback and communication, and setting up Pay Per Click/ SEO programs . These activities help promote and stress the importance of environmental/social/corporate sustainability to put the corporation on the path to sustainability, one that positively affects future growth in addition to short wins .

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Section 2: Solution Options

Short-Term Solutions


Medium-term solutions Ecolibrium has deciphered include: ensuring the establishment of company management and sustainability awards for employee motivational purposes, including tying executive compensation/bonuses to environmental and sustainable benchmarks, outsourcing certain parts of the company tasks to specialized parties that could offer better services to solve the problem(s), establish company reputation as advocates of

green political associations who are supporters of reducing carbon emissions, as well as facilitating open information flow between the company and stakeholders . This deploys an ERP system as it provides significant business process analysis, work procedures, staff retraining and other activities, and helps the corporation manage important parts of the business as well as interaction with customers and stakeholders .

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Medium-Term Solutions

Long-term solutions Ecolibrium has identified are: complying with the standards of ISO 9000 (9001: 2008) and ISO 14001: 2004 for insurance and provision of long-term requirements for environmental management systems . Moreover, implement an AS/ NZS 4801:2001 – occupational health and safety management systems to make sure OH&S measures are being implemented; reinvestment of profits and developing the potential for renewable energy . This will show the company is taking steps towards

rectifying some of its wrongs, helps its public image and ensures the company complies with worldwide environmental expectations . Further explanations and reasons to implement these solutions are included in Appendix E . Practices based on the long-term solutions are extremely vital and will determine current and future success of the organization including provision of value-for-money for the company by routinely monitoring the cost benefit analysis processes for all projects undertaken, which are included in Appendix G .

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Long-Term Solutions


In addition to adopting short, medium and long-term solutions as proposed by Ecolibrium, further activities and establishment of associations as explained in Appendix F may help EurozTRASH augment and solidify their position in the field by providing a competitive advantage with further customer awareness, stakeholder influence and performance tracking systems . All the problems and solutions discussed are representative of the five main key steps to strategic sustainability as described in the book (Benn, 2007: 177-179) . And Ecolibrium environmental management system (EMS) team will reflect upon the targets, solutions, and will continually review the progress towards sustainability .

Ecolibrium offers three methods of EMS implementation: Solution patch, annual revision and continuous (Appendix F) offering fixed and variable pay rate options based on performance according to desired goals (Appendix F) . Ecolibrium strives to engage with companies to enhance their profitability while maintaining balance

with the environment and social issues . Ecolibrium takes a strategic approach to identifying problems within a corporation and targets solutions to overcome these obstacles on short, medium and long-term time scales . Ecolibrium provides a strong emphasis on internal training of staff to develop and maintain in-house sustainability programs . We have provided solutions to mitigate the immediate concerns of EurozTRASH, take steps to develop sustainability framework within EurozTRASH and provide solutions that allow for self compliance .

If selected by EurozTRASH, Ecolibrium will continue to work with EurozTRASH to achieve milestones and further develop EurozTRASH sustainability programs until independence is achieved . Ecolibrium prides itself on innovative approaches to sustainability . If EurozTRASH desires to take their sustainability measures to a new level, Ecolibrium can assist EurozTRASH in becoming the benchmark in mining sustainability .

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Solutions Summary

Section 4: References

Azapagic, A . 2004 . Developing a framework for sustainable development indicators for the mining and minerals industry . Journal of Cleaner Production . Vol 12 P 639-662 .

Banks, B ., Clouse, M ., Cox, D ., Gaensbauer, J ., & Hutton, R . 2007 . The Role of Sustainable Development in Risk Assessment and Management for Multinational Corporations . Multinational Business Review . Vol 15 No . 1: 89 . Viewed on 7th October 2010 <http://www .ciber .gatech .edu/workingpaper/2007/013-07-08 .pdf>

Benn, S ., Dunphy, D ., & Griffiths, A . 2007 . Organizational Change For Corporate Sustainability: A guide for leaders and change agents of the future . 2nd Edition . Pp 177 – 179 . New York: Routledge .

Bianco, W ., Lynch, M ., Miller, G ., & Sened, I . Nov 2006 . A Theory Waiting to Be Discovered and Used”: A Reanalysis of Canonical Experiments on Majority-Rule Decision Making . The Journal of Politics . Vol 68 Issue 4: 838 . Viewed on 8th October 2010 <http://proquest .umi .com .ezproxy .library .uq .edu .au/pqdweb?index=6&did=1305047121&SrchMode=1&sid=2&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1286529485&clientId=20806>

Gordan, M . & Lenk, P . 1992 . When is the Probability Ranking Principle Suboptimal? Journal of the American Society for Information Science (1986-1998) . Vol 43: 1 . Viewed on 7th October 2010 <http://webuser .bus .umich .edu/plenk/Probability%20Ranking%20B%20Gordon%20Lenk%2092 .pdf>

Mudd, G .M . 2007 . Global trends in gold mining: Towards quantifying environmental and resource sustainability? Resources Policy . Vol 32 P 42-56

List of References

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The following pages contain a series of supplemental documents used throughout the EurozTRASH proposal process . Please consider them as a look inside Ecolibrium’s planning methodology .

If hired, our policy is to share all documents and methodology with our clients in the hope of fostering an open and collaborative partnership .

Section 5: Appendix

Appendix

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Section 5: Appendix A

Ecolibrium BackgroundMission Statement:

Our aim is to provide the companies we work with the ability to grow financially and competitively by implementing a ‘best business ethos’ that enhances the society, culture and environment in which they practice, while reducing the risk involved in participating in present-day global markets .

History/Values:Founded in 1960, Equilibrium was a small London company

that specialized in risk management consultancy, responding to a field that emerged in the late 1950s . Initially funded by the IMF to insure against and investigate risk within international firms that worked in sectors such as mining and banking, Equilibrium blossomed, implementing a balanced approach when dealing with complex risk management issues .

Since then, Equilibrium has grown in depth and breadth and now houses offices worldwide, partnering with hundreds of international corporations as a result .

Always looking forward, Equilibrium expanded its services and conceived Ecolibrium in 2003 . This new initiative offers sustainability consulting within the broader lens of risk management . Ecolibrium is concerned with the world-at-large, and believes, for example, that privatization and profit need not exist at loggerheads with the environment . In fact, Ecolibrium is a group that insists companies take account of the negative environmental effects they create by reducing their global environmental impact, developing a ‘greener’ public image, and in doing so reducing risk and benefiting financially .

Our Services: • Environmental risk assessment • Climate change susceptibility assessment• Development and execution of sustainability strategies and

frameworks at corporate and regional levels• Sustainability audits, performance monitoring, continual

reassessment and continual upgrading• Third-party auditing• Implementing corporate transparency

Our Guiding Principles:1 . Always consider a long-term view – where have we come

from and where are we going?2 . Within this long-term outlook, what are our clients’ risks?3 . Given those risks, where opportunities exist?4 . How do we leverage those opportunities, ultimately seeking

balance for our clients?5 . Always act as a resource – ultimately our clients make their

own decisions6 . Self-sustaining programs

Reinsurance companies Ecolibrium has consulted with: Munich RE Group, Allianz, Gerling Reinsurance Australia, RGA Reinsurance, JTW Reinsurance, Gerling Global, Enterprise Reinsurance, SCOR, Singapore Reinsurance, European Reinsurance, Swiss Re, RXRE Reinsurance, Odyssey Re, Stockton Reinsurance

Other Australian companies Ecolibrium have consulted with: BHP Billiton, Bluescope Steel Limited, Boral Limited, Dexus Property Group, Origin Energy Limited, Stockland, Westpac Banking Corporation ., Fuji Xerox Australia, Qantas, HASSELL, Centennial Coal Mines

Other overseas companies Ecolibrium have consulted with:Solid Energy (NZ), Beazley Group Plc (UK), Compass Minerals International (USA), Glencairn Limited (UK)

Other organisations Ecolibrium has partnered or consulted with:UN Development Programme, World Bank, WWF, Environment Canada, CSIRO (Australia), Alliance of Small Island States, Sustainable Minerals Institute (Australia), International Association of Insurance Providers, US Chamber of Commerce, The New Economics Foundation (UK)

Section 5: Appendix B

Newmont Mining Case StudyCompanyNewmont Mining , founded in 1921, is one of the world’s leading gold companies . Headquartered in Denver, Colorado, the company employs approximately 34,000 employees and contractors, with the majority working at Newmont’s mine sites across the globe, including the United States, Australia, Peru, Indonesia, Bolivia, New Zealand and Mexico .

HistoryAs all companies whose livelihood depends on asset reliability

and performance, Newmont’s operations groups were faced with small windows of time in which to carry out routine maintenance activities and repair “downed” assets quickly and efficiently without impacting the organization .

Given these constraints, maintenance personnel wanted as much inventory on hand as possible to avoid a stock out situation that could interrupt operations and create costly delays in getting equipment back online .

Purchasing departments, on the other hand, were tasked with creating other efficiencies – ordering via standard purchase orders and keeping warehouse and inventory costs down .

This caused them to keep just enough spare parts on hand, sometimes not stocking critical pieces or holding too much of the wrong parts .

These competing objectives created a balancing act between maintenance and purchasing departments with both groups trying to meet their respective goals .

Problem• The need for corporate visibility• Various site functions were managed very differently• No consistent, standard set of tools to manage these processes

across the company • Problems to manage cash flow, supplier performance and

corporate risk . • Not enough communication

Solution• Creation of a consistent inventory management methodology • Develop and implement standard terminology, processes and

technology to ensure all sites apply consistent approaches and diligence to inventory and procurement optimization

• Implement a successful ethics and compliance program• Selection of appropriated communication methods for specific

work environments and take place regular communications reviews

• Implemented training programs involving: management skills development, ethics , conduct and communication

Results• Optimization of safety stock levels • Shared critical spares within a geographical region • Reduced risk to production – stopping stock outs and over

commitment of capital tied up in excess inventory • Focus on optimization – not simply stock reduction • Overall improved communication method• Newmont Mining (NYSE:NEM)The gold producer said

revenues rose 34% to $2 .15 billion, vs . consensus estimates of $1 .9 billion .

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Section 5: Appendix B

Australian Panel Tanks Case StudySummarySystem design and certification to ISO 9001:2000 (Quality Man-agement Systems or Quality Assurance) and AS/NZS 4801:2001 (OHS Management Systems or OHSMS)

CompanyAustralian Panel Tanks (APT) designs, manufactures and installs water tanks for commercial and industrial applications including: Industrial Water Tanks, Commercial Water Tanks, Drinking Wa-ter Tanks, Wastewater Tanks, Process Water Tanks and Bolted Steel Water Tanks .

HistoryAPT commenced operations in 1986 and is still owned and oper-ated my Mr Warwick Spiller .

Problem• Lack of monitoring/recording processes to guarantee

effectiveness• Unclear management responsibilities

Solution• Mid February 2004, work commenced on documenting sys-

tems to ISO 9001:2000 (Quality Assurance) and AS/NZS 4801:2001 (OHS Management Systems)

• Work commenced with regular interviews with management scheduled over a period of 4 weeks . The purpose of these inter-views was to record APT’s processes

• An integrated safety and quality management system was de-signed within 3 weeks of the completion of interviews

• Management were given a draft copy of the quality and safety management system for review . Management took just under 1 week to review the completed documentation

• A final copy of the system was prepared and management were trained in the integrated Quality and safety management system

• The quality and safety management system was implemented over the next few weeks with regular follow ups from Compli-ance help’s QA consultant .

Result• Just over 3 months after commencement of the process toward

certification, APT were certified to ISO 9001:2000 and AS/NZS 4801:2001 .

• A team of auditors from International Certifications Pty Ltd arrived to perform the audit . The results of the audit were as fol-lows: Major Corrective Actions: 0, Minor Corrective Actions: 0

Section 5: Appendix C

Prioritised Problems

Problem iden,fied Poten,

al for escala,on

Risk/hazard po

ten,

al

Compe,,ve advantage

Improved Pub

lic percep,

on

Long term

strategic benefits

Poten,

al to

affect cultural change

Poten,

al to

be a fin

ancial benefit

Poten,

al to

affect e

nviron

mental change

Score

Management Lack of CEO commitment 0 3 3 3 3 3 1 3 19

Lack of influence of senior management 0 3 3 2 3 3 1 3 18

Absence of a senior sustainability execu@ve 0 3 3 3 3 3 1 3 19

Lack of commitment of middle management 0 2 1 1 3 3 1 3 14

Lack of sustainability management systems 0 3 1 2 3 3 1 3 16

Lack of regional/local sustainability champions 0 2 1 3 3 3 1 3 16

Lack of underes@ma@on of the risk associated with environmental sustainability non-‐compliance0 3 1 2 3 3 3 3 18

Environmental issues undervalued by management 0 3 1 3 3 3 2 3 18

Lack of training in corporate sustainability management 0 2 1 1 3 3 1 3 14

Good governance and ethical business prac@ces 0 2 1 3 3 3 1 1 14

Human Resources Resistance to change by internal employees 2 3 0 0 3 3 0 0 11

Slow adop@on of employees to change 0 2 0 0 0 0 0 0 2

Lack of communica@on/poor employee rela@ons 0 1 1 0 2 3 0 0 7

Lack of sustainability educa@on/ knowledge 0 1 2 1 3 2 0 2 11

Lack of understanding of environmental importance 0 1 2 1 2 2 0 3 11

Undervalua@on of environmental issues 0 3 2 1 2 2 1 3 14

Lack of sustainability training/ con@nual training 0 1 2 2 3 3 0 2 13

Absence of input from employees into environmental sustainability programs0 1 2 2 3 3 0 2 13

Health and safety issues 3 3 2 2 3 3 1 0 17

Diversity and equal opportuni@es 2 3 1 2 3 3 0 0 14

Lack of focus groups 0 1 2 1 2 3 0 2 11

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Section 5: Appendix C

Prioritised Problems (cont.)Financial Lack of budge-ng for sustainability 0 2 2 2 0 0 3 3 12

Financial returns on sustainability investments are not immediate 0 2 0 0 0 0 3 0 5

Under apprecia-on of financial opportuni-es associated with sustainability investment0 2 2 0 0 1 3 3 11

Appropriate alloca-on of financial resources for sustainability 0 3 1 0 2 1 3 3 13

Don’t use triple boEom line accoun-ng 0 2 3 3 2 3 3 3 19

Will require investment in R&D to approve efficiency 0 1 3 0 3 2 3 3 15

High upfront costs 0 1 0 0 0 0 0 0 1

Sustainability frameworkLack of a sustainability framework 0 3 3 2 3 3 2 3 19

Lack of an integrated sustainability framework 0 2 3 2 3 3 2 3 18

Lack of sustainability assessment and monitoring 0 3 3 3 3 3 2 3 20

Lack of sustainability training 0 2 3 1 3 3 1 3 16

Lack of sustainability repor-ng 0 3 3 3 3 3 2 3 20

Lack of milestones-‐short, medium and long term 0 3 3 3 3 3 2 3 20

Sustainability framework is not tailored to different geographical loca-ons 1 1 3 2 3 3 2 3 18

Lack of methods to include employee recommenda-ons 1 1 3 1 2 3 2 3 16

Requirement of a companywide environmental sustainability policy and tailored regional policies1 1 3 2 3 3 1 3 17

Lack of in house sustainability programs 0 1 3 1 3 3 1 3 15

Bold innova-ve approaches to sustainability 0 0 3 3 3 2 2 3 16

Environment Undervaluing of environmental issues 3 2 0 0 3 3 0 3 14

Lack of understanding of environmental importance 1 2 0 0 2 3 0 3 11

Lack of assessment of exposure to environmental risk 3 3 3 0 3 3 0 3 18

Geographical limita-on and appropriateness of some strategies 2 2 3 0 3 3 2 2 17

Irreversible environmental damage at some company loca-ons 3 3 0 0 3 0 0 0 9

Proper management of hazardous pollutants 3 3 1 3 3 1 2 3 19

Costs of environmental cleanup 3 3 0 2 0 0 0 0 8

Stakeholder rela9ons/mediaPoor company reputa-on 3 3 3 3 3 3 0 0 18

Poor PR 3 3 3 3 3 2 0 0 17

Lack of community rela-ons 1 2 3 2 3 3 0 0 14

Lack of input from the community 0 0 1 2 2 2 0 1 8

Lack of respect for community 2 1 0 2 2 2 0 0 9

See Criteria/Titles on Previous Page

Section 5: Appendix D

Problem Priority MatrixLow Impact / High Concern

• NoissuesidentifiedatthislevelMedium Impact / High Concern

• Acknowledgementofenvironmentalimportance• PublicRelations• CommunityEngagement• Encouragementofcommunitycontributions&

impact

High Impact / High Concern• CEO&seniormanagementcommitmentto

sustainability;Reputation• Product/servicequality• Health&Safetyissues;HumanRights• Financialreturnsonsustainabilityinvestments/

appreciationofopportunities• Appropriateallocationoffinancialresources• Alignmentofserviceswithdemand• Environmental&Sustainabilityregulations&

policies/programs• AccesstoCapital• LaborCosts• Managingdownsizing&CorporateChange

ManagementtowardsSustainability

Low Impact / Medium Concern• Valuationofenvironmentalissues• Land&Nature:geographicallimitations;

implementationofappropriatestrategies• EnvironmentalIssues:Spills/Nuisance

Medium Impact / Medium Concern• Managementcompliancetoenvironmental&

sustainabilityissues• Diversity&Equalopportunities• Laborpractices• FocusGroups• PropermanagementofHazardousPollutants• Product/ServiceManagement:Marketing,

Advertising&DemandCreation

High Impact / Medium Concern• SustainabilityVision• Goodgovernance&ethicalbusinesspractices• AppropriateSustainabilitymanagementsystems• Assessment&Monitoringincludingmilestones• EfficientR&DandStrategicManagement

Low Impact / Low Concern• Noissuesidentifiedatthislevel

Medium Impact / Low Concern• EfficientCommunication&EmployeeRelations• Changemanagementwithinemployees&their

willingnesstochange• Employeeinputsintosustainabilityprograms

High Impact / Low Concern• Corporatesustainabilitymanagementtraining

(continual)• Risksassessment&howtoreducethem• Teamwork/EmployeeMotivation• UpfrontCostse.g.cleanup• IntegratedSustainabilityframework

Short-term Issues Medium-term Issues Long-term Issues

Magnitude of Impact on Company

Mag

nitu

de o

f Con

cern

to S

take

hold

ers

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Section 5: Appendix E

EurozTRASH SolutionsShort-term Solutions:1 . Suggest management attend motivational and educational courses

aimed at re-educating business managers who lack environmental and sustainability knowledge . Examples include: the University of Technology Sydney Environmental Sustainability Short-Course programmes, the ICT Environmental Sustainability Group (“Green ICT”) .

2 . Hire a Senior Sustainability Executive to oversee the implementa-tion of short, medium and long-term goals .

3 . Open an open forum website, one for staff, one for the public, so feedback is available . This promotes the company as one that is ‘transparent’, an important catch-cry, and it can take any valuable feedback and use it to its advantage .

Medium-term Solutions:1 . Introduce the company to management awards such as:

- The Malcolm Baldrige National Quality Award . (Competition to identity and recognize United States companies pursuit of excel-lence in management) . - The European Foundation for Quality Management’s EFQM Excellence Model Award . (Competition to identify and recognize European companies pursuit of excellence in management) . - The JM Juran Award . (Competition to identify persons who have contributed in an outstanding way to the application of effective quality management in Australia) .

2 . Tie executive compensation/bonuses to environmental and sustain-able benchmarks .

3 . Outsource companies to resolve certain problems in certain sectors . For example, hire Veolia Environmental Sources to manage and resolve hazardous pollutants .

4 . Adopt a political edge, and instead of supporting political parties that don’t mind what mining companies do to the environ-ment, support the greens and do so openly and it could work in EurozTRASH’s favour . With the huge political swing in Australia’s last federal election that favoured the Greens, and the awareness of the Australian public on issues such as the environment and global warming, by allinging the company with a political party that are advocates of reducing carbon emissions etc . the company is seen as advocates as well .

5 . Implement an Enterprise Resource Planning scheme that tightens the efficiency of internal and external resources, tangible assets, financial resources, materials and human resources . Its “purpose is

to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connec-tions to outside stakeholders . Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment” .

Long-term Solutions:1 . The company must implement an ISO 9000 (9001:2008) . This al-

lows the company the insurance that it complies with standards set by the International Standards Organisation, which includes these commitments: - determine the processes needed for the quality management system and their application throughout EurozTRASH, - determine the sequence and interaction of these processes, - determine criteria and methods needed to ensure that both the operation and control of these processes are effective, - ensure the availability of resources and information necessary to support the operation and monitoring of these processes, - monitor, measure where applicable and analyse these processes, - implement action necessary to achieve planned results and con-tinual improvement of these processes

2 . Implement an ISO 14001: 2004 providing long-term requirements for environmental management systems . This will: - reduce the quantity of toxic and hazardous chemicals and materi-als acquired, used, or disposed of by EurozTRASH, - maintain cost-effective waste prevention and recycling programs, - use sustainable practices in the acquisition of bio-based, environ-mentally, - preferable, energy-efficient, water-efficient and recycled-content products (‘Green Purchasing’), - partner with contractors and regulators specialized in an environ-mental theme . - install a Toxic Release Inventory Tracking and Reporting pro-gramme .

3 . Implement an AS/NZS 4801:2001 (OHS Management Systems), the Australian And New Zealand Standard for Occupational Health and Safety Management Systems . This will: - ensure compliance with OHS measures, manage industrial hygiene etc .

4 . Re-invest your profit into International Bank for Reconstruction and Development (IBRD) bonds . This scheme works thus:

- The World Bank raises US$10-15 billion annually through these bonds, investing in “sustainable, social and environmentally responsible companies and organizations .” - As a partner in EurozTRASH, The World Bank can choose EurozTRASH as one of those companies these IBRD bonds fund . This means the profit raised by the EurozTRASH is actually being reinvested into the company, but in doing so it raises its environ-mental, social and sustainable credentials . It also means a reduction in financial risk, as the companies these bonds are funding have already undergone a risk assessment, and if they fail to comply with certain regulations and standards, but are willing to, these upgrades are funded by international monetary institutions such as the IMF or the World Bank itself . This means EurozTRASH can upgrade its facilities to comply with internation-al standards without investing a great deal of money in the scheme . Once it complies with international standards IBRD bond money is invested in it, boosting production and profit . - While EurozTRASH does need to pay back the money the IMF or World Bank invest in it, this is a long-term loan with no interest paid . - So not only do EurozTRASH gain a profit internally, it also makes money through the profit the IBRD bonds secure .

5 . As part of this upgrade develop the potential for renewable energy . This way the company looks to be making steps towards rectify-ing some of its wrongs, it helps its public image, and it ensures the company complies with worldwide environmental expectations .

Section 5: Appendix F

Shifting from a Follower to a LeaderTrust Fund for Metals and Minerals Stewardship CouncilSimilar to Forest Stewardship Council (http://www .fsc .org) or Ma-rine Stewardship Council (http://www .msc .org), this independent organisation will certify and track the most sustainably mined re-sources around the world . Certified materials can lead to consumer awareness and competitive advantage in the marketplace . Other mining companies, international groups (World Bank, etc .) could also be encouraged to contribute to the fund .

Board of StakeholdersSimilar to a board of directors, a board of stakeholders will be ap-pointed for each regional mining operation . This group will meet monthly and have the authority to approve any operational expan-sions, allocation of funding to the community, allowable operating criteria (e .g ., dust requirements), etc . A suggested composition might be:• Representative from EurozTRASH’s executive board• Local general manager of EurozTRASH operations• Representative from the local government• Representative from a local environmental group• Representative from a local social/community group• Representative from the mine workers or union• Representative from the local scientific community

Real-Time Tracking of KPIsIn addition to incorporating key performance indicators in EurozTRASH sustainability framework we recommend Eu-rozTRASH publish performance indicators to the public in real-time on their website . Daily tallies and running trends (or best estimates, as appropriate) for both company-wide and individual site operations might include:• CO2-equivalent emissions• Water usage/discharge• Gross excavated tonnage• Dust levels• Total electricity usage• Total fossil fuel usage• Other environmental incidents (chemical spills, etc .)• Serious worksite injuries/fatalities• Other worksite injuries/issues• Other worksite incidents (stopped operations, etc .)• Employee sick days

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Section 5: Appendix G

BudgetWe have arranged 3 different ways to assist your company:

1. Solution Patch2. Annual revision3. Continuous sustainability assistance

1 . In this option we focus on your top 10 problems and we fix them over a period of 1 to 1 .5 years . Major focus on short-term problems and guidance for long-term problems . This option consider 2 payments, 60 percent at the beginning and 40 percent at completion of the project .

2 . We stay in your company for a period of 6 months and train your staff in the proper tools to “heal yourself ”, we implement metrics and set goals which are revised in an annual sustainability report that we will help you produce . It might be considered a temporary solution, but the real effects depend on your company’s commitment and performance of the tools built though the training period . Annual revision is the immediate solution that is provided to the company . It is not necessarily the best solution, but the company often create awareness and learns to adapt and mature, eventually finding its own optimised solution to problems, and the continuous improvement of its performance during the upcoming years .

3 . We revise your entire company and we work together as partners in continuously improving performance and key issues, sharing responsibilities and seeking to raise awareness of the origins of your problems . We use sustainability tools to improve your status as well as your performance in attempting to diminish their impact . The progress of this continuous improvement is achieved in several stages to encourage constant work and to provide feedback . Together we set milestones in the short- and long-term, payment will consist of a fixed rate and a variable rate based on performance according to set goals .

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