week 11+ 12 Flashcards
what are Indicators
help to convert relevant data into concise information about
management’s efforts to influence the organization’s environmental performance, or the condition of
the environment
what are environment indicators
scientifically credible information in a manner that can be readily understood and used by decision-makers
what are indicators useful for
for policy making
what are Commodity exchanges
exchange is a forum with rules and procedures for trading standardized
commodities
four questions about reporting
is it mandatory
what is the subject
is it substantial
what is it for
what is mandatory reporting
Focused, regulatory, gvt level
what is voluntary reporting
reputation, mkt requirement, company self reporting
what is the subject - corporate
Voluntary or mandatory, like that required by securities exchanges,
a corporate sustainability report
what is the subject - facilities
Often mandatory, like NPRI or GHGRP in Canada
what is the subject - product
like LCA, product carbon footprints and environmental product declarations
How substantial is it - PRCAO
participation, reporting, commitment, action, outcomes
types of environmental indicators
management, operational, condition
management indicator
number of employees trained in energy management
research and development
establishment of fuel efficiency criteria
return on investment for energy
operational indicator
quantity of fossil fuel used per unit of product
quantity and type of energy used
condition indicator
Biodiversity at site
Water or air quality at site
Global average temperature
What is important to the firm?
Financial materiality – generally captured as “ESG” reporting -
Environmental/social/governance
Supports company, owners, investor regarding financial risk
Is it about society and the environment – “sustainability”?
Supports broad objectives of sustainable development
“Sustainability” reporting
Broad list of issues and impacts
double materiality
impact, financial
impact materiality
impact on society and environment
financial materiality
impact of societal expectation and environmental change on business
Global Reporting Initiative (GRI)
Multi-stakeholder process and independent institution
Develops globally applicable Sustainability Reporting standards.
Standards for voluntary use by organizations
In 2002 GRI became independent
Collaborates with the United Nations Environment Programme
what is GRI sustainability reporting
the practice of measuring, disclosing to stakeholders for organizational performance against specific environmental, social and
economic/governance objectives
how many indicators in GRI!
more than 300, can be core and additional
indicator numerator
environmental information
indicator denominator
basis of measure
for the environment, which measure that matters
amt of ghg in atmosphere
three scopes of greenhouse accounting
SCOPE 1: Direct emissions
SCOPE 2: Electricity indirect
SCOPE 3:Other indirect emissions
Business-led initiatives (BLI)
Governed exclusively by companies
Develop codes and standards as effort of “self-regulation”
Often supply-chain focused or operational
for customers, public, government
* Often directed at governments
* Weakness can be “lowest common denominator” standard
The Responsible Care® Ethic
work for the improvement of people’s lives and the environment
be accountable and responsive to the public,
take preventative action to protect health and the environment;
innovate for safer products and processes that conserve resources and provide
enhanced value;
the codes of practice in responsible care
Operations Code
Stewardship Code
Accountability Code
when was responsible care made
Started in Canada in 1985 in response to bhopal disaster
Multi-stakeholder initiatives (MSI)
Mix industry, NGO and even government sector representation
Diverse or issue focused
Weakness: legitimacy and market penetration hard to achieve
what is Forest Stewardship Council
The first multi-stakeholder initiative for sustainability
what is Marine Stewardship Council
Started by WWF with Unilever (consumer products multinational), then went independent
what is fairtrade
Multi sector, multi product organization
Emphasizes labour and environmental justice, especially for small producers
what is US/Canadian Green Buildings Council
Owns LEED standard
Populist, high awareness, sets standards at low level to encourage
participation
what is Responsible Jewellery Council
Criticized bc businesses are more in charge than ngos
