EHS & Sustainability...EHS & Sustainability A Seat at the Table Workshop September 10, 2019 2019 NSC Congress Agenda Center for Safety & Health Sustainability Corporate Social Responsibility

EHS & SustainabilityA SEAT AT THE TABLE

DARRYL HILLFirstGroup

EHS & Sustainability

A Seat at the Table WorkshopSeptember 10, 2019

2019 NSC Congress

Agenda

Center for Safety & Health Sustainability

Corporate Social Responsibility

Human Capital Project

Harvard Study

FirstGroup America Sustainability

Learning Objectives

Recognize & act on the value of EHS & well-being as part of a sustainable business practice

Identify how to adopt impactful metrics

6

Alan Leibowitz AIHA

Richard Orton IOSH

Jennifer McNellyCSHS Secretariat –

ASSP Executive Director

Laura Clements CSHS – ASSP

Manager Professional and

Global Affairs

Kathy A. SeabrookChair, CSHS

Peter Sturm CSSEDarryl Hill

Chair, Advisory Council

CSHS Board of Directors


“The billions spent on CSR programs have barely moved the needle in terms of improving working conditions and the lives of workers in global supply chains.”

“The corporate social responsibilitymirage,” ISHN – May, 2017

International Labour Organization (ILO)

The ILO estimates that some 2.3 million women and men around the world succumb to work-related accidents or diseases every year Over 6000 deaths every single day.

Worldwide, there are around 340 million occupational accidents and 160 million victims of work-related illnesses annually.


“Traditional methods of reporting on sustainability produce reams of data that are incomplete, inaccurate, irrelevant and not readily understood or useful to keystakeholders.”

Human Capital Project

Objectives are to promote:

Adoption of more impactful metrics Standardized CSR reporting Public reporting Integrated approaches to addressing

human capital-related issues

Adoption of More Impactful Metrics

Leading indicators Low levels of reporting on the three

leading indicators recommended by CSHS

Occupational disease-related indicators No organization specifically

mentioned fatalities related to occupational diseases

Indicators for suppliers in developing countries

Standardized CSR Reporting

No consensus:

metrics or indicators

data collection methodologyand reporting formats

definition of terms

Difficult to compare performanceacross organizations

Public Reporting Partnered with ASSP,

ASSPF, and Harvard Law School

Investigates human capital reporting practices of major global corporations

Conclusion CSR reporting on OHS is not yielding the relevant

and quality data necessary to allow key stakeholders to effectively evaluate corporate performance or compare performance across organizations.

New levels of collaboration and compromise are needed among the leading sustainability reporting frameworks and standards development organizations, NGOs, governments, business, labor, and other key stakeholders.

Responsibility strategy workshop

FirstGroupSustainability Goals

September 2019


Sustainable Development Goals (SDGs)

▪ 193 member States of the United Nations adopted 17 Sustainable Development Goals (‘SDGs’) to make our world more prosperous, inclusive, sustainable and resilient.

▪ Many leading businesses, including VW, Volvo, Novartis, BASF, Phillips., Aviva, VW, PepsiCo, Bayer, BMW


Theme Aim and focus area SDG goal SDG target for 2030Delivering low emission transport

(FirstGroup) (Global) (Global)

Low emission fleet

We will provide a cleaner, greener fleet that offers low carbon and air emissions for our customers• Incorporate alternative,

less carbon intensive fuels and ‘cleaner’ technology across our fleet.

• Develop the market for low emission solutions with our customers.

• Partner and work with manufacturers, professional associations and policy makers in relation to climate related issues to enable the transition to lower carbon / emissions.

By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Integrate climate change measures into national policies, strategies and planning


Theme Aim and focus area SDG goal SDG target for 2030Innovating for our customers


Transport for everyone

Delivery of easy and convenient mobility solutions that meets the needs of all customers.• Improve accessibility

and inclusion for all passengers, including those who are younger, older or those with disabilities

• Integrate the needs of vulnerable people into our decision-making to deliver safe transport solutions and practices.

By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.


Theme Aim and focus area SDG goal SDG target for 2030Supporting our people


Skills for the future

We have the right people and skills in place for now and the future• Ensuring we have the skills in place

to embrace the transition to a lower carbon and digital economy via; o Promoting and investing in STEM

education to secure access to employees with skillsets which meet the future business needs.

o Development of a thriving apprenticeship and internships to support new skills.

o Development of internal programmes to support employees to develop new skills.

• Engage and empower employees to become ambassadors for the business and advocates of sustainable transport.

By 2020, substantially expand enrolment in higher education, including vocational training and information and communications technology, technical, engineering and scientific programmes.

By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.

By 2030, ensure that all learners acquire the knowledge and skills needed to promote sustainable development.


FirstGroup Carbon Emissions (2018-19)

Scope 1 89% of our CO2 emissions are from Gas, Diesel, CNG, LNG, nearly all to power our fleet

Scope 2 10% of our CO2 emissions heating and cooling our buildings, electric buses

Scope 31% of our CO2 emissions are from ‘business travel, refrigerant gas escape, our wastes


FirstGroup Emissions – how are we doing?

2,600,000

2,620,000

2,640,000

2,660,000

2,680,000

2,700,000

2,720,000

2,740,000

2016 2017 2018 2019ton

nes C

O2 e

mitte

d

FirstGroup gross CO2 emissions by year

340

350

360

370

380

390

400

410

420

430

440

2016 2017 2018 2019

tonne

s CO2

per

£Milli

on R

even

ue

FirstGroup CO2 emissions by Revenue

AES CorporationADRIANA ROCCARO

AES Sustainability journey

AGENDA

Are we green or sustainable? Not a destination but a journey You can only manage what is measured Smart Safety What we learned

Contains Forward-Looking Statements

ORIGIN

Concept begins to include a business approach.Not a single definition

1713 1798

1987

2000s

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland Report – Our common future - by United Nations)

Never harvest more than the forest can regenerate (Nachhaltigkeit - “sustained yield”)

"Population theory" - population tends to grow faster than resources”

(Thomas Malthus published an essay “The Principle of Population")


TRIPLE BOTTOM LINE | PPP | THREE PILLARS

Social

EnvironmentalEconomic

Sustainability


HOW IS IT TRANSLATED INTO A COMPANY?

Focusing on quality, innovation and efficiency to create competitive advantage and long-term value

Anticipating and managing current and future geopolitical, economic, environmental and social opportunities and risks

A company’s capacity to prosper in a competitive and changing global business environment

Source: RobecoSAM

by

and


FROM OWN INTEREST TO SHARED VALUE

Pre-conventional moralityself-interest dominates

“being good” means avoiding punishment

Conventional moralityunderstanding rules and

authority as part of a larger framework of social norms

Post-conventional moralitycapable of defining a

personal code of conduct that integrates personal autonomy within a wider

social order.

Source: Kohlberg (1958); RobecoSAM (2017)

1950(health & safety)

EmployeesUnionsRegulations H&S

Local standardsOHSAS 18001

1970(quality)

Clients needsCost controls ISO 9000 standards

and certification

1990(environment)

Env. RegulationsMediaResources

ISO 14000 standards and certification

2010(sustainability, CSR)

StakeholdersPublic Opinion

ISO 26000


WHAT HAVE CHANGED The expectation towards companies Increased demand for transparency and disclosure Civil society more empowered

John Hambrock. The Brilliant Mind of Edison Lee


Renewables Oil/Diesel/Pet Coke

Gas Coal

4 MARKET-ORIENTED STRATEGIC BUSINESS UNITS

14 COUNTRIES

$32.5B TOTAL ASSETS OWNED & MANAGED

$10.7B TOTAL 2018 REVENUES

30,111 GROSS MW IN OPERATION

4,545MW UNDER CONSTRUCTION

2.4MCUSTOMERS

6UTILITY

COMPANIES

+8,000AES

PEOPLE

Improving lives by accelerating a safer and greener energy future.

MISSION

• Put Safety First• Act with Integrity• Move with Agility• Have Fun through Work• Strive for Excellence

VALUES

FUEL TYPE

31%30%

36% 3%


AES JOURNEY

2011 - New strategy

2012 – 1st Sustainability Report

2014 – DJSI North America

2016 – CDP A- Leadership level

2017 -FTSE4Good inclusion

2018 –Climate Scenario Report

Intensity reduction target


YOU CAN ONLY MANAGE WHAT YOU MEASSURE

External Assurance of

data

2016- 2022

50%Reduction in

Carbon Intensity

2016- 2030

70%Reduction in

Carbon Intensity

CO2/MWh


A DECADE TO REACH MATURE SMS PROCESS2005-2010

AES Online

Audit process improvement

Safety Standards

SMS

Safety Perception Survey

Golden Hard Hat Award

2010-2012

3 year action plan

2013

Safety Perception Survey

Internal Safety Auditing

2014

Significant Incidents & Potentials

Top Decile LTI case Rate

2015

New proactive safety actions

8 fatalities in 2016Significantly increase

in LTI rate


SMART SAFETY

• Safety Take It Personally

• NSC Assessment• DuPont Safety

Perception Survey• External EHS Audit

Program• Non-Injury SIP Rate

Target and Incentive• Assessment to of EHS

Management Information System

2017

• Identification of New EMIS

• Consistent SMS• Standardize Incident

Management Process• Standardize

Accountability and Recognition

• External EHS Audit Program

• eLearning

2018 • Digitalization• Roll Out of new

Standards• Investigation Tool -

TapRooT• Implementation of

Accountability and Recognition

• Roll Out of eLearning Courses

• Renewables in External EHS Audit Program

2019


AES LTI RATES


AES FATALITIES


WHAT WE HAVE LEARNED IN OUR JOURNEY

It is not a destination, but a journey

Not another corporate initiative - Involve all levels of organization

Change in mindset – going beyond local boundaries

Continuous improvement

Providing data vs. valuable/meaningful information

Tracking performance is not enough, governance and management is relevant

Importance of communicating about Sustainability

Thank you!

Improving lives by accelerating a safer and greener energy future

2020Campbell Institute

Symposium

February 11-12Gateway to the Future of EHS

thecampbellinstitute.org/2020symposium

Bonita Springs, FL

Documents

EHS & Sustainability...EHS & Sustainability A Seat at the Table Workshop September 10, 2019 2019 NSC Congress Agenda Center for Safety & Health Sustainability Corporate Social Responsibility