integration of sustainability into the business processes

55th EOQ CONGRESS, BUDAPEST, HUNGARY

June 20-23, 2011

INTEGRATION OF SUSTAINABILITY

INTO THE BUSINESS PROCESSES

Author: K. Gaži Pavelić, mag.oec.,

Senior Project Manager

EOQ Quality Systems Manager and Auditor

Presentation overview

55th EOQ CONGRESS, BUDAPEST, HUNGARY

June 20-23, 2011

• Present and desirable state of SD in

Podravka d.d.

• Sustainable development strategy

• Measuring SD benefits

• Starting steps

Coordinated data gathering,

monitoring and analyzing

Costs ?

Good coordination and

organization within the

given framework

Compliance with relevant

regulations, laws and

codes

Risks, prevention

and correction?

Continuous

improvement?

Reducing water

and energy

consumption?

Using renewable

energy sources?

Waste and pollution

reduction?

Reporting

HACCP

ISO 9001

Halal

Security and product control

A collective agreement,

WU involved in the

management decision-

making

Workplace Safety

ISO 14001?

LCA, marketing, PR?

Data and files not

systematized, organized and

consistent

Regulatory requirements considered

as the maximum requirements

55th EOQ CONGRESS, BUDAPEST, HUNGARY, June 20-23, 2011

Desirable state

• Podravka's business based on the principles of

sustainable development integrated into all processes.

• Management systems continuous improvement

• Communication with stakeholders (national and local

administrative bodies, governmental and non-relevant

associations, retail) is constant, open and timely.

• Voluntarily initiated long-term sustainability

• Active cooperation with suppliers and other partners in

the food chain in order to maintain high environmental

standards and achieve broader goals of the long-term

sustainable development

4


Sustainability as the business strategy

For food companies, with the usual investment in

social and economic development programs,

stability and prosperity of the society and

environment from which they provide resources, in

which they produce, distribute and sell their

products, are vital for continued business success.

5


relationships

communication

collaboration

Strategy

Sustainable development

strategy

Social

respons-

ibility

Business

efficiency

Competitive

advantage

7

Challenge

• The successful strategy for effective

sustainability requires a combination of

strategic actions, organizational

capabilities and appropriate technology.

• Significant potential to reduce overall

costs and waste, and to win new

customers is a real business challenge

Barriers

• ROI analysis for the

sustainable development

implementation often is not

enforced

• The difficulty of determining

sustainable development ROI

9

Benefits

Three key areas that benefit from SD implementation

1. Costs:

- Steady reduction in energy costs (depending on the

volume of business)

- Continuous cost reduction of waste (depending on the

volume of business)

- Steady reduction in production costs (depending on the

volume of business)

2. Safety and quality

Annual decrease in errors/ non-conforming product

3. Increase of business opportunities

Customer growth as a result of SD/ CR initiatives

Source: Aberdeen Group, February 2009


Sustainable development KPIs

Indicators must be:

• objective

• easy to measure and understand

• verifiable (can be to audited)

• meaningful for the company and stakeholders

• attainable, but with a small portion of desirability

• assessed, wherever possible, using already collected,

existing data relevant to company business

10

Significant indicators

so

cia

l pro

gre

ss

en

vir

onm

ent

consum

ption o

f natu

ral

resourc

es

econom

ic g

row

th a

nd

em

plo

ym

ent

additional indicators


First steps toward implementation

• Active support of the top management

• Determin and confirm the SD implementation

team

• SD reporting standardization

• Continue with the EMS implementation

• Develope activities that will arouse the of all

employees' interest for the SD

• Initiate the change of the Podravka's vision,

mission and policies

12


• Create and activate the SD site on company

Intranet

• Initiate the change of the Podravka's vision,

mission and policies

• Food industry initiatives through the Croatian

Business Council for Sustainable Development

• Active communications with relevant

government institutions

• Active contribution to the committees that draft

SD laws and regulations relevant to Podravka13

First steps toward implementation/cont.

THANK YOU!