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E C O V A D I S® C O N F I D E N T I A L

Corporate Social Responsibility … and what it means for your company

Prepared for AIM-Progress | June 2015 Simon Gargonne Senior CSR Analyst EcoVadis


Moving beyond compliance

Implementing a CSR Management System

EcoVadis Solution and Approach


What is Corporate Social Responsibility?


Let’s call this compliance.


Laws, regulations, codes of conduct Avoid legal

issues

Ensure compliance, &

contain risk

Dual benefit

Create Value

Identify top suppliers, build relationships &

opportunities for innovation &

growth Performance

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BU

SIN

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AD

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REA

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Benefits of going beyond compliance

TOPIC COMPLIANCE

(REACTIVE) BEYOND COMPLIANCE

(PROACTIVE) BENEFITS

Employment of people

with disabilities

Ley General para la Inclusión de las Personas con Discapacidad

Development of disabled workers employment

policy and objective 3% workforce and measures

A positive image (internally and externally)

Reduction of ISR (articulo 186 Ley ISR)

Maximizing use of

resources: packaging

Ley General para la Prevención Y Gestión

Integral de Los Residuos

Packaging weight and size reduction, recycled materials used (e.g.

replacement of PVC with PET)

Cost reduction due to less materials, optimization of shipments

Waste reduction Competitive advantage

Energy management

Normas Oficiales Mexicanas en

Eficiencia Energética Vigentes

Implementation of an energy management

system, i.e. policy, objectives, action plan, performance audits and review (e.g. ISO 50001)

Reduction of energy costs and GHG emissions

Continuous improvement of energy performance

Eco-Crédito Empresarial Enhanced reputation


Increasing adoption of standard metrics for

sustainability …


INTERNATIONAL CSR INITIATIVES


NATIONAL CSR INITIATIVES


Moving Beyond Compliance




What is a Management System? A management system is a framework of processes and procedures used to ensure that an organization fulfills all tasks required to achieve its objectives.

OBJECTIVE

PROCESS

PROCEDURE


About Management Systems

A few examples of international standards setting the requirements for management systems are:

Environmental Management System

(e.g. ISO 14001)

Health and Safety Management System

(e.g. OHSAS 18001)

Quality Management System

(e.g. ISO 9001)

What is a Management System?


Continuous Improvement – PDCA

The PDCA model provides a method to bring your company closer to the desired outcome.

Click each stage of the PDCA model to learn more about it.

PLAN Establish the objectives and

processes necessary to deliver results in

accordance with the expected output (the target

or goals).

DO Implement the plan

and execute the process and establish

a system to collect data.

CHECK Study the actual results

(measured and collected in "DO" ) and compare them

against the expected results (targets or goals from the

"PLAN").

ACT Establish corrective

actions where significant differences are identified

between expected and planned results.



About Management Systems

An effective management system allows companies to

improve performance through a process of continuous improvement.


Improvement directly supports …

efficient resource use business continuity risk reduction streamlined

productivity

Imp

rovem

ent


SUPPLY CHAIN

ENVIRONMENT

ETHICS

SOCIAL

Energy consumption & GHG (CO2) Water

Biodiversity Local Pollutions

Materials, Chemicals, Waste

Employees Health & Safety Working Conditions

Social Dialog Career Management & Training

Corruption & Bribery Anticompetitive practices Data Privacy & Protection

Responsible Marketing

Suppliers environmental performance Suppliers social practices

Product Use Product End-of-Life

Customers Health & Safety Sustainable Consumption

Child & Forced Labor Non-Discrimination

Fundamental Human Rights

What is a CSR Management System?


SUPPLY CHAIN

ENVIRONMENT

ETHICS

SOCIAL














Marketing & Design Services


SUPPLY CHAIN

ENVIRONMENT

ETHICS

SOCIAL














Manufacture

of food products


SUPPLY CHAIN

ENVIRONMENT

ETHICS

SOCIAL














Manufacture

of paper products


A CSR Management System implies the adoption of a number of indicators. The management system should be based on sustainability topics that are relevant to that sector

Policy/Mission Statement

Endorsement of CSR Initiatives

Measures/Actions Implementation

Coverage Certificates/Labels

Reporting/Key Performance Indicators (KPIs)

360°

Policies Actions Results


Sector relevant CSR topics


The 7 Management Indicators

Policy/Mission Statement: mission/value statements, commitments, principles, objectives, policies issued by the company.

Endorsement of CSR initiatives: endorsement of CSR external initiatives, principles, active participation in international/sector CSR initiatives.

Policies


Energy Target: “ We commit to reduce electricity use per product manufactured by 20% over the 5 next years”

Written Ethics Policy: (e.g. Code of Conduct)

Policy on environmental issues

Endorsement of ESR program (CEMEFI)

Endorsement of UNGC & active participation in Mexico Local Network (Pacto Global Mexico)



Measures/Actions: concrete actions

put in place to support commitments, objectives and deployment of policies (e.g., training, manual procedures).

Implementation Coverage: roll out of actions throughout the company to support commitments and/or policies.

Certificates/Labels: certifications received for the management system and/or labels assigned to the products/services delivered.

Actions What is a CSR Management System?

Health & Safety Manual Anti-corruption training Suggestion box or grievance

mechanism …

100% of employees covered by employee satisfaction survey

65% employees covered by collective bargaining agreement

Industria Limpia Marine Stewardship Council

label ISO 14001 (Env Management)



Reporting/KPI: quality and level of reporting readily available to stakeholders.

Results


U.N. Global Compact Communication on Progress

GRI G3.1 / GRI G4 based report Company CSR report available

on corporate website

Average face to face training hours per employee on business ethics (e.g. anti-corruption)

Water consumption /m3 Electricity consumption / MWh Men/Women Ratio (%) Health and Safety statistics

(frequency rate, severity rate, average of H&S training hours per employee)


Moving Beyond Compliance




EcoVadis – the #1 Supplier CSR Scorecard & Rating network

Easy to use service for reporting & improving CSR performance:

20,000+ companies per year…

in 150 spend categories…

in over 100 Countries

70% are small- and medium-sized

120 Global Multinationals

Cumulative spend 1 trillion €/ year

Suppliers Buyers

21 CSR Criteria


An Easy Online Process

EcoVadis is available to give you advice and answer your questions throughout the whole process, with our multilingual help center & hotline: support.ecovadis.com

We speak

Support & Help

http://support.ecovadis.com/home


Your CSR performance platform

Access your platform using a simple web

link: no installation or hardware investment

required

Share your Scorecard with multiple clients

(any EcoVadis customer)

Client A

Client B

Client C

Your Scorecard: assessment results, strengths & weaknesses

Corrective Action Plan

CSR document management

Enhanced services (depending on

your subscription level)

Assessment Results and CSR services are available on your EcoVadis Supplier Portal

One powerful interface to access :


Examples of documents collected *

In order to rate your CSR performance, EcoVadis needs evidence to demonstrate your company’s practices. You can upload any type of document that can reflect your company’s commitment to CSR:

Any type of supporting documents: written policies, reports, action plans, certificates, etc. All formats accepted: text, PDFs, web links, images, etc.

Providing documents: a key point for your CSR evaluation

• ISO 14001 Certificate • Eco-label certification • CSR report • QHSE Charter • RoHS Declaration for ML600G • Internal Safety inspection report • Business code of conduct • Environmental impact assessment • Health & Safety plan • Quality Manual • Accident Incident Rate Scorecard • Supplier Audit Report (Factory X) • REACH Declaration • Employee Handbook 200X

* For illustration only Home


Overall CSR Score

Industry Benchmark*

Strengths and Improvement Areas

360° Watch*

Your Sustainability Scorecard

* Premium and Corporate only Home


What are the benefits for your company?

Embrace a continuous improvement process With regular re-evaluation of your CSR performance

External media/stakeholders watch * Protect your brand with 360 news monitoring

Get expert insight on your CSR practices

Benchmark your performance, explore sector details and practices* Learn how you are positioned vs competitors [Premium service]

Share your EcoVadis results & respond to multiple clients’ CSR survey requests

Enhanced communication tools* to highlight your good practices

Prioritize your actions for maximum R.O.I.

Manage improvement plans directly online Collaborate with your clients and work smarter with interactive feedback

Improve

Communicate

Understand

Update

ECOVADIS® 2014 CONFIDENTIAL *Premium and Corporate plans only


Thank You


Back Up Slides


Avoiding duplication of efforts…

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Platform & Service Features: Your industry CSR profile

Criteria activated Amongst EcoVadis’ CSR criteria, check which ones are taken into account for your evaluation (non activated – medium or high importance)

CSR issues* Understand the major issues that your industry is facing. All the issues are linked with one of the CSR themes (environment, social, ethics or supply chain)

Sector CSR info* • Instantly identify the best

practices and CSR initiatives in your industry

• Continuous regulatory watch

* Premium and Corporate only

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