www.wec.org

World Environment Center • REVIEWThe newsletter of the International Environment Forum

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“...the World EnvironmentCenter advances sustainabledevelopment by encourgaing

environmental leadership,helping improve health andsafety practices worldwide,

and fostering the efficient useof natural resources to protect

the global environment.”- from the WEC Mission Statement

August 2002 • Vol. 28

IN THIS ISSUENew Board, Renewed Focuson Capacity BuildingWelcome New IEF page 1

WEC Europe to SupportGreen Supply Chains in CEE page 2

Improving EnvironmentalManagement in LACNew USAID Project Funding page 3

Harrison Ford Presents 2002WEC Gold Medal to CEMEXGold Medal for Sustainability page 4

Mapping the Journey fromStockholm to Johannesburg page 5

New Board, New LeadershipICSR Tools on the Web page 6

Sir Mark Moody-Stuart on the“Road to Johannesburg”

page 7

...see IEF FOCUS page 5

The IEF welcomes the following new SeniorCorporate Delegates: • Alcan AluminumLimited represented by Mr. Daniel Gagnier,Vice President, Corporate Affairs, Environ-ment Health and Safety. Alcan was recently

represented by Mr. Hugh Porteous, Director ofResearch & Corporate Relations, at the 9 July meeting of the ICSROperational Working Group meeting. • Beiersdorf AG representedby Dr. Detlef Wiswe, Commissioner of Group Environmental & SafetyAffairs. • Boehringer Ingelheim GmbH represented by Dr. HartmutLeidig, Head of Corporate Department, Environmental Protection andSafety. • Dow Chemical Company represented by Mr. Samuel L.Smolik, Vice President, Environment, Health and Safety. Mr Smolik

also serves on the WEC Board of Directors. • Otto Versand repre-sented by Dr. Johannes Merck, Head of Department, Environmentaland Social Policy. • Royal Dutch/Shell Group of Companies repre-sented by Ms. Anne Marie Van der Rest, Group HSE Advisor. Shell wasthe 2001 Awardee of the WEC Gold Medal for International CorproateEnvironmental Achievement. • SC Johnson & Son Inc. represented byMr. Scott E. Johnson, Director, Global Environmental & Safety Actions,who presented to the IEF in May on SC Johnson’s achievements sincereceiving the 1994 WEC Gold Medal. • Syngenta representedby Mr. Peter Natkanski, Head Corporate Health, Safety andEnvironment.

...see BOARD page 6

Over the last sixteen months the WECBoard of Directors has experienced significantgovernance changes as five new members joinits ranks. Mr. James C.Lime, Vice President,Corporate Environment,Health and Safety atPfizer Inc. was electedto the WEC Board Chair-man position in Decem-ber 2001.

Four top profession-als from industry recentlyjoined the Board, eachrepresenting a globalleader: Mr. Samuel L.Smolik, Vice President,Environment, Health and Safety, The DowChemical Company; Ms. Elizabeth A.Lowery, Vice President, Environment andEnergy, General Motors Corporation; Mr.Wayne S. Balta, Vice President, Corporate

Environmental Affairs and ProductSafety, IBM Corporation; and Mr.

Karl F. Schmidt, VicePresident, Worldwide

Environmental Affairs, Johnson &Johnson. We are also fortunate to

have Mr. Barry Worthington, President,United States Energy Association and U.S.Delegate to the World Energy Council, re-cently join our already outstanding Board.

Over the years, WEC’s unique complementof relationships, capabilities and programs havehelped to visibly change the environmental

landscape in dozens of

Board Renews Mission, Identifies TopOrganizational Priorities for CenterBoard Renews Mission, Identifies TopOrganizational Priorities for Center

countries on five continents: accident pre-vention and mitigation in Latin America andAsia; pollution prevention and energy effi-

ciency in Eurasia; and es-tablishing new indepen-dent environmental con-sulting firms in Central andEastern Europe.

At its 17 May Boardmeeting in Washington,D.C., Board Members cre-ated a Strategic PlanningCommittee (SPC),chaired by Wayne Balta.The SPC met in New York29-30 July; participants in-cluded Jim Lime; WEC

Vice-Chairmen Dr. Robert W. Slater, SeniorAssistant Deputy Minister, EnvironmentCanada and Dr. Bernard Tramier, Senior VicePresident, Environment and Industrial Safety,TotalFinaElf; WEC Treasurer Prof. NicholasA. Robinson, Gilbert & Sarah Kerlin Distin-guished Professor in Environmental Law,Pace University School of Law; and Eliza-beth Lowery of GM, and for the WEC, JohnMizroch, President and CEO, and Jim Veras,Executive Vice President. Sam Smolik of Dowand Dr. Thomas M. Hellman of The Limitedwere unable to attend but contributed theirinput. All Board members are invited to par-ticipate in the SPC process as we go forward.

Upon examining the Center’s past,present and future challenges, the commit-

“Every Day is Earth Day” TM

Linda for five years of dedication and serviceto the IEF. As IEF Chair, Karl also heads theIEF Steering Committee, which coordinatesevent programming, scheduling, and IEFmembership development. Karl invites all IEFSenior Delegates to take part in shaping andpromoting this important and unique forumfor dialog and collaboration.

The second Roundtable, in Paris, will behosted by WEC Board Member Dr. BernardTramier of TotalFinaElf on 28-29 October. Thetopic of energy efficiency was determined bythe IEF member assembly at the last WECEuropean Roundtable in Strasbourg.Attendance is limited. Detailed programs andregistrations will be made available to the IEFin August. Please contact WEC EuropeanProgram Coordinator Isabelle Sécher atwec.europe@voila.fr for more information. Welook forward to welcoming the IEF to Baseland Paris this fall.

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July marks the first anniversary of the WECEuropean office in Augsburg, Germany. TheWEC and the Environmental Science Centre(ESC) signed a one-year agreement in 2001for joint project development and collabora-tion. The ESC is a non-profit institution locatedat the University of Augsburg that develops andexecutes interdisciplinary projects forimproved public understanding of topenvironmental issues.

As part of the agreement, ESC’s directorProf. Dr. Armin Reller, has provided, pro bono,a fully equipped office for WEC. Dr. BernardTramier, Senior Vice President of SustainableDevelopment and Environment of TotalFinaElfand Vice Chairman of the WEC Board of Di-rectors, has provided, pro bono, Ms. IsabelleSécher as resident WECEuropean ProgramCoordinator. The WECexpresses its gratitude forthese contributions.

Ms. Sécher’s dutiesare to provide full-timeservices to Europeansupporters of the WEC,organize WEC EuropeanRoundtable meetings, andpromote WEC programs in ICSR and CleanerProduction. She will also support the ESC/WEC Joint Environmental Project, aimed atfacilitating and expanding supplier chainenvironmental management programs ofmajor multinationals in Central and EasternEurope. The WEC/ESC agreement and Ms.Sécher’s appointment were extended for oneyear during a visit to Augsburg by ExecutiveVice President James Veras.

WEC Augsburg Office • October Roundtables

Ms. Isabelle Sécher,WEC Europe.

Novartis, Roche, TotalFinaElf to Host NextEuropean Roundtables on Energy Efficiency

The next two WEC EuropeanRoundtables, an exclusive program for SeniorCorporate Delegates to the InternationalEnvironmental Forum (IEF), will examine thelatest industry efforts to promote a culture ofenergy efficiency innovation and practice.

“Energy Efficiency: KnowledgeManagement – Progress and Limits,” will behosted first in Basel on 24-25 October by WECBoard Member Dr. Kaspar Eigenmann o fNovartis and Dr. Hans Künzi of Roche. Mr.Karl Schmidt, Vice President, WorldwideEnvironmental Affairs, Johnson & JohnsonCorporate and member of the WEC Board ofDirectors, will present the J&J case for energyefficiency. This will mark Karl Schmidt’s firstmeeting as Chairman of the IEF.

Karl succeeds Mrs. Linda H. Biagioni, VicePresident, Environmental Affairs, Black &Decker Corporation. The WEC welcomesKarl and expresses its deep appreciation to

Basel, Switzerland

The success of two WEC EuropeanRoundtable events resulted in commitmentsfrom five attending guest companies,Beiersdorf , Boehringer Ingelheim , OttoVersand , Royal Dutch/Shell Group andSyngenta to join the International EnvironmentForum.

WEC wishes to thank Schering AG andDr. Dieter Hübl, also Dr. Lothar Döllinger andMr. Ferdinando Aspesi of Aventis SA forhosting the IEF European Roundtable events,“External Rankings and Ratings – Impact onShareholder Value?” and, “EmergencyPreparedness and Crisis Management” heldin Berlin, on October, 18-19, 2001, and inStrasbourg, February, 28th, March, 1st, 2002,respectively.

We also wish to thank Dr. Herwig Hulpkeof Bayer AG and Christian Hochfeld o f

Öko-Institut, our keynote presentersin Berlin, and Head of SustainabilityResearch at Sustainability AssetManagement Dr. Alois Flatz, whopresented on the process ofgenerating the Dow Jones

Sustainability Index. Prof. Dr. Armin Reller ofthe Environmental Science Centre of theUniversity of Augsburg, WEC’s partner institutein Europe, depicted the problems of worldenergy consumption and deprivation.

In Strasbourg, participants heard twodifferent visions of r isk and crisismanagement from keynotepresenters Dr. Ralph Elfgen,Gerling Risiko AG and GarethJones, Marsh UK Ltd. andbenefited from excellent casestudies presented by three WECBoard members. Johnson &Johnson Vice President forWorldwide Environmental AffairsMr. Karl F. Schmidt described thecompany’s bold and bri l l iantresponse to the 1982 Tylenol crisisand the lessons learned. Dr.Bernard Tramier , Senior VicePresident for Sustainable Development andEnvironment at TotalFinaElf, provided ananalytical comparison of the Erika tanker crisisand the storage explosion at the Toulouse

L-R: Prof. Dr. Armin Reller, ESC; Mr. John Mizroch, WEC; Dr. Bernard Tramier,TotalFinaElf; Mr. Ludwig Metz, Bristol-Myers Squibb; Dr. Kaspar Eigenmann,Novartis; James G. Veras, WEC (seated) at the WEC Europe office.

Augsburg, Germany

Strasbourg, France

Berlin, Germany

Crisis Management, Shareholder ValueRoundtables Attract Five New IEF FirmsCrisis Management, Shareholder ValueRoundtables Attract Five New IEF Firms

Paris, France

refinery. Dr. Kaspar Eigenmann, Head ofCorporate HSE at Novartis International,described the worldwide Novartis EmergencyManagement System.

www.wec.org

Latin America & Caribbean • Partnerships for Capacity

The Santo Domingo Chamber ofCommerce, the U.S. Agency for InternationalDevelopment, and the WEC held a CleanerProduction Seminar at the Hotel Melià in SantoDomingo, Dominican Republic on 7-8 May,2002, “Cleaner Production in the Caribbean:Promoting and Implementing CleanerProduction (CP) Projects at Manufacturing andTourism Facilities.”

The two-day seminar was addressed byThe Honorable René Ledesma, DominicanRepublic Under Secretary for Environmentand Natural Resources. Combinedattendance was higher than expected withmore than 140 representatives of a half dozenindustry sectors, national environmentalministries, consultants and technical NGOsfrom Barbados, the Dominican Republic,Jamaica, Mexico, Puerto Rico and the U.S.

WEC wishes to thank SDCOC PresidentJose Manuel Armenteros and EconomicManager Carmen Arias , Director ElenaBrineman and Mr. Odalis Perez at the USAIDMission to the Dominican Republic, WECCountry Director for Mexico Ing. Enrique Bravo,and Dr. Gilbert Jackson of the USAID/LAC Bu-reau for their support for this event.

Technical managers explored howCleaner Production policies and practices arebeing used to improve industrial productivitythrough: implementation of good housekeep-ing practices; recycle and reuse of materials;recovery of production byproducts; and modi-fication to the production process.

Specific CP strategies were illustrated withexamples of projects completed at manufac-turing, tourism, pharmaceutical, chemical andbeverage manufacturing facilities in theCaribbean. Presentations were in Spanishand English with simultaneous translation.

The semi-nar succeededin raising theprofi le ofCleaner Pro-duct ion as aglobal visionand as a practi-cal means ofreducing costsfor small andmedium-sized

enterprises (SMEs), environmental managersand consultants, government officials,policymakers, tourism facility operators, finan-cial stakeholders, and industrial associations.

Presentations on foundation CP concepts

L-R: Ing. Enrique Bravo, WEC (standing); John Mizroch, WEC;Hon. Ms. Elena Brineman, USAID Mission, Santo Domingo; Hon.Rene Ledesma, Dominican Republic Ministry of Environment andNatural Resources; Mr. Jose Manuel Armenteros, SDCOC; Dr.Gilbert S. Jackson, USAID/LAC Bureau.

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and approaches were made by the MexicoPolytechnic Institute and Cleaner ProductionCenter, Tulane Institute for EnvironmentalLaw and Policy. Results of WEC casestudies were presented on pollution preven-tion and energy efficiency demonstration

projects at Indo-Quimica chemical plant andBrugal y Compania distilleries, originallyfunded by IEF member companies Pfizer Inc.and Bristol-Myers Squibb.

Case studies on sustainable tourism werepresented by Viva Dominicus Hotel, and onEH&S management innovations by RamonMarrero of Pfizer Puerto Rico. The USAIDOffice of DevelopmentCredit discussed re-sources available to SMEsseeking to leverage devel-opment credit for suitableCP projects. On-line CPresources were also high-lighted.

The WEC also wishesto thank Mr. John MichaelKramer at PADCO, Mr.Mark Oven at PA Consult-

Hon. René Ledesma, Deputy Ministerof Environment and NaturalResources, Dominican Republic.

The WEC and the U.S. Agency for Inter-national Development convened a high levelmeeting on financial mechanisms for CleanerProduction, “Greening Mexico’s Growth:Environmental Supply Chain ManagementDrivers for Cleaner Produc-tion,” on 4 April, 2002, at theHotel Melià Reforma inMexico City, Mexico.

Together with our part-ners from NacionalFinancera (NAFIN), GeneralMotors , Banamex/Citigroup, Novartis, Pemex,Alcoa, Johnson & Johnson,Pfizer, and Cemex, the WEClaunched on a dialogue to identify a new di-rection for promoting and financing CP among

Biol. Raúl Enrique Arriaga Becerra,Under Secretary of Natural Resourcesfor Mexico (SEMARNAT)

Dr. Guillermo Román,SEMARNAT.

Dominican Republic

Mexico

The WEC is proud to announce the awardby USAID/LAC of continuation funding throughits partner PADCO for Cleaner Production (CP)follow-on projects through 2003.

The WEC LAC Cleaner ProductionProject seeks to enhance existing corporatesupplier chain initiatives with technical, finan-cial and policy initiatives being developed forSMEs, including the WEC CSR ManagementTools™ for suppliers. Initial steps will include:§ Sharing management know-how, techni-cal expertise and infrastructure from industry,government and academia with the develop-ing world;§ Gather various Green Supply Chain toolsand evaluate the insertion of ICSR and CPmethods and approaches into existing sup-plier management programs;

Cleaner ProductionProject Expanded

Latin America

...see LAC/CP page 6

ing, and visiting WEC Program Manager Ms.Angela McFadden for their help in making thisevent such a tremendous success.

Ms. McFadden is a chemical engineer,who was on loan to the WEC for three monthsfrom the U.S. EPA Region III office in Philadel-phia as part of a U.S. Department of Agricul-ture Leadership Development Program.

SMEs.SEMARNAT

e x p r e s s e dstrong interestin support ingthe initiative.Keynote pre-senters in-cluded Biol.Raúl EnriqueA r r i a g aBecerra, UnderSecretary ofNatural Resources for Mexico(SEMARNAT) and Dr. GuillermoRomán, former Director of the MexicoPolytechnic Institute’s CleanerProduction Center, and currently withSEMARNAT.

Ms. Angela McFadden,USEPA Region III.

“Every Day is Earth Day” TM

WEC Gold Medal: CEMEX • “Business in Harmony with Nature”

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On May 17, 2002 WEC’s signature , black tie event was held at thespectacular National Building Museum in Washington D.C., where Mr. Lorenzo H.Zambrano, Chairman of the Board and CEO of CEMEX, accepted the 18th WEC GoldMedal for International Corporate Environmental Achievement. Mr. Zambrano washonored on behalf of CEMEX’s 25,000 employees in more than 33 countries andrecognized for the company’s global leadership in sustainable development.

Actor and conservationist Mr. Harrison Ford, who presented the medal to hiscolleague and friend Mr. Zambrano, said of CEMEX, “Many of us tend to forget that our livesand the natural world in which we live are bound together in so many ways. [CEMEX] is a

company that recognizes thisdelicate balance and hasexcelled in simultaneouslybuilding economies and protect-ing our natural heritage.”

Mr. Philip Watts, Chairmanof the Committee of ManagingDirectors of the Royal/DutchShell Group served as EventChair; Shell was the 2001 WECGold Medallist. Mr. Watts intro-duced Mr. Ford to some 650 dig-nitaries from government,industry, international organiza-tions, the diplomatic corps, andmembers of the media. ModelEl Carmen centerpieces, an

original CEMEX video presentation, and late night dancing to mariachi music made theevent very special and memorable. The WEC award is presented annually to a multina-tional company with demonstrated leadership in sustainability and an exceptional envi-ronmental performance record, and is selected by the independent WEC Gold Medal Jury.The complete CEMEX Award Jury Citation is available on the Internet at www.wec.org.

L-R: Mr. John Mizroch, WEC; Mr. James C. Lime, Pfizer Inc.; Mr. LorenzoZambrano, CEMEX; Mr. Harrison Ford, Conservation International;Mr. Philip Watts, Royal Dutch/Shell Group.

WEC Announces NewGold Medal Award forSustainability in 2003

Widely recognized as the intellectualbeachhead of corporate environmental andsocial consciousness, EH&S managementhas increasingly transitioned to the broaderconcept of sustainable development.Accordingly, the new WEC Gold Medal forInternational Corporate Achievement inSustainable Development recognizes not onlythe commitments and achievements of multi-national companies to continuously improvetheir worldwide EH&S practices, but also thedischarge of its global social and economicresponsibilities. This is the first change tothe award since its inception in 1985 (as theWEC Gold Medal for International CorporateEnvironmental Achievement), whose originalpurpose was to recognize preeminentindustry leadership and contributions to world-wide environmental stewardship.

WEC’s Gold Medal remains among themost respected measures of a company’sglobal leadership in sustainable development.Mr. Philip Watts of the Royal Dutch/ShellGroup, the 2001 Awardee company, andChairman of this year’s event reflected on theaward’s impact, “speaking for Shell, I can tellyou that we very much appreciate beingawarded the Gold Medal last year – we saw itas a public acknowledgement of the hard workand commitment of Shell people all over theworld.”

Only multinational manufacturing or pro-cessing or service corporations that candocument well-implemented, outstandingand sustained global policies are eligible. Tobe selected, a company must demonstrate aglobal vision and a commitment to sustain-able development through the definition andinnovative implementation of the company’s

policy and practice, and its internationalleadership in the discharge of its economic,environmental and social responsibilities.

An independent Jury of internationalenvironmental leaders makes the selection.The Jury may withhold the WEC Gold Medal inany year in which none of thenominees meets the required level ofexcellence. Submissions are evalu-ated based on a brief narrativeexpressing the company’s policy,performance in economic growth,environmental stewardship and cor-

porate social responsibility and a descriptionof a Signature Project, which establishes thecompany as an international leader in sus-tainable development. Contact Susil Singh,Program Coordina-tor, susil@wec.org.

A companion to the Gold Medal Awardsince 1999, WEC hosted its fourth GMA Collo-

quium at the International Trade Cen-ter in Washington, D.C. “GreeningGlobalization: Industry and Sustain-able Development in the 21st Cen-tury,” considered industry’s changingrole in global development and ex- ...see TRADE, page 8

amined how recent patterns of globalizationwill affect the ability of business to prosperwhile at the same time being a positive influ-ence for sustainable development.

This year’s Colloquium set a new stan-dard for exceptional presenters and informa-tion. From industry, presentations were madeby Ms. Diana Lyon, Program Director, Corpo-

rate Environmen-tal Affairs , IBMCorporation (1990 Awardee); Mr. ScottJohnson, Director, Global Environmental andSafety Actions, S.C. Johnson & Son Inc (1994Awardee); Dr. Ruth Perry, Director of Sustain-

CEMEX Gold Medal Colloquium ExploresSustainable Trade, CSR Management InitiativesCEMEX Gold Medal Colloquium ExploresSustainable Trade, CSR Management Initiatives

www.wec.org

IEF Forum Examines SustainabilityContinuum Before and After WSSD

More than 30 WEC companies were rep-resented at the 23 April IEF Forum onSustainability at theBarclay Inter-Conti-nental Hotel in NewYork. This year, theUN World Summit onSustainable Devel-opment (WSSD) co-incides with the 25th

Anniversary of theInternational Environ-ment Forum (IEF)and the meeting wassuitably titled, “On theRoad to Johannes-burg: Sustainable In-dustry Milestones.” WEC corporate delegatesexamined the various ways in whichsustainability is being implemented acrossglobal operations at some of the world’s larg-est companies. Longtime fr iend of theCenter, Dr. Robert W. Slater, Senior AssistantDeputy Minister, Environment Canada andVice Chairman, WEC Board of Directors,chaired the event and delivered the openingremarks.

The meeting’s keynote address wasmade by Sir Mark Moody-Stuart, Chairman,Business Action for Sustainable Develop-ment and former Chairman of the Committeeof Managing Directors of the Royal Dutch/ShellGroup.

In his remarks, Sir Mark enunciated hisstrong belief that high environmental and la-bor standards are in no way barriers to out-standing economic performance. Based onpersonal observations of countless compa-

nies and operations around the world, thesame sound management of assets and

people that deliversgood environmentaland workplace per-formance also deliv-ers good businessperformance.

As a hope for theWSSD, Sir Markstated that businessand industry groupsat Johannesburgare united in a clearup front commitmentto work with others todeliver more sus-

tainable development. Since no sector candeliver such sustainable development on itsown, Sir Mark identified partnerships, built ona foundation of trust, as a key route to progress.Excerpts from Sir Moody-Stuart’s keynoteaddress appear below and on page 7.

A cocktail reception kicked off the event andwas hosted by Pfizer Inc. and Mr. James C.Lime, Vice President, Environmental, Healthand Safety at Pfizer and Chairman of the WECBoard. IEF Chair Mrs. Linda H. Biagioni, VicePresident, Environmental Affairs, Black &Decker Corporation and Member of the WECBoard of Directors opened the proceedingsand introduced the guest speaker, Mr. J. DavidRunnalls, President of the International Insti-tute for Sustainable Development andMember, WEC Board of Directors. Mr.Runnalls provided a rich and often amusingaccount of the origins of the WEC in the con-text of the striking changes that have takenplace over the last 30 years in the areas offree trade and international development.

L-R: Mr. J. David Runnalls, IISD; Sir Mark Moody-Stuart, BASD;Mr. Gerald Bresnick, Amerada Hess Corporation

Sharing Stories of Stewardship • IEF Focus

The theme of the WSSD in Johannesburg is SustainableDevelopment – how in a globalising world we developnot just economically, but do so with respect for theenvironment and ensuring that the benefits of that de-velopment accrue to society at large. Within that enor-

“On the Road toJohannesburg”Excerpts from Sir Mark Moody-Stuart’s Keynote Address to the IEF

L-R: Mr. James C. Lime, Pfizer Inc.; Mrs. Linda Biagioni, Black& Decker Corporation; Hon. James Connaughton, White HouseCouncil on Environmental Quali ty (CEQ); Mr. BarryWorthington, U.S. Energy Association.

WEC and the United States Energy As-sociation held a joint breakfast briefing for theIEF and USEA members at The Army and NavyClub in Washington, D.C. on 8 November,2001.

WEC Board Member Barry Worthington,Executive Director of the U.S. Energy Asso-ciation, sponsored the event, “Energy, the En-vironment and New International Priorities,”which covered the latest developments fromrecent global energy talks in Buenos Aires,and highlighted the Bush Administration’sstrategies on energy and corporate environ-mental stewardship.

The IEF welcomed the President’s newlyappointed Chairman of the Council on Envi-ronmental Quality, Hon. James L.Connaughton. As one of the President’s topenvironmental advisors, Mr. Connaughtonprovided IEF members with an insider’s view

of key upcoming energy and environmentalpolicy debates. WEC wishes to thank CEQand USEA for their participation and support.

WEC and USEA are planning anotherbreakfast event in Washington, D.C. thisNovember 20 on the topic, “Trade, theEnvironment and Sustainable Developmentin the 108th Congress.” This briefing willcover sweeping elections of US Congres-sional Representatives in November and ex-amine likely trends for US trade and environ-mental policy during the second half of theGeorge W. Bush Presidency. ContactCorporate Programs Director Deirdre Wilsonat deirdre.wilson@wec.org . 5...see JOBURG page 7

Washington, DC

New York, NY

Washington, DC

mous challenge there will be a focus on the eliminationof poverty.

The economic basis necessary for developmentClearly there is a need for overseas development aid.The commitments made at Monterey were a start. ODA,and more of it effectively delivered, is anessential component. But it is not a lastingsolution. The goal has to be, in parallel withODA, to develop the ongoing economic

“Every Day is Earth Day” TM

Corporate Responsibility • Management Tools on www.wec.org

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The WEC is pleased to announce the April2002 appointment of Deirdre Wilson to theDirector, Corporate Programsposition. She is responsible for de-veloping and managing the Inter-national Environment Forum (IEF),the WEC Gold Medal Celebration,and International Corporate SocialResponsibility (ICSR) projects.

For 15 years, Deirdre Wilsonhas worked in industry, primarily asCorporate EH&S Manager forvarious business units of GE,Siemens and Alusuise-Lonza; allpositions included a strong empha-sis on product stewardship, corporate report-ing, acquisitions/divestitures and auditing.Since 1993, she’s been actively involved inthe chemical industry’s Responsible Care

Ms. Deirdre Wilson, WEC

Program, the US TAG to TC207, ISO 14000(Environmental Performance Evaluation)

and associated Legal IssuesForum.

From 2000-2002, Deirdreserved as liaison with TheAuditing Roundtable incollaboration with the IEF onthe WEC ICSR verification pro-tocol before joining the WECstaff. She attended SUNY NewPaltz for both her B.A. and M.A.in Anthropology & Geology andreceived the ArethusiaGraduate Thesis Award.

Deirdre can be reached via E-mail atdeirdre.wilson@wec.org or call (212) 683-4700 x201.

ICSR Operationalizes Management ToolsThe WEC International Corporate Social

Responsibility (ICSR) initiative has advancedconsiderably this spring. The ICSR teamcelebrated its second anniversary in April2002. Over the course of two years the team,with participation from twenty IEF companies,succeeded in producing a series of CSR toolsfor member compa-nies to assist innavigating their waythrough the challengesof operating sus-tainably within theirestablished culture.

The tools, a matrixof CSR indicators; averification protocol; ascreening mechanism;and a filter mechanism,were unveiled at anICSR meeting in November 2001 and madeavailable to the IEF for pilot testing. A custom-ized version of the WEC verification protocolwas recently pilot tested with chemical sup-pliers in China.

An important CSR development tool is theWEC Web site – www.wec.org – and the“Mapping the Journey” section. Thismembers-only site offers downloadable CSRtools and useful links for IEF companies ex-ploring pathways to sustainability.

At the November 2001 session, it becameevident these materials could be imple-mented in a number of ways, and so spawned

an ICSR project with Columbia UniversitySchool of International and Public Affairs(SIPA). In January 2002, WEC and ColumbiaSIPA launched a study to shed some light onthis as part of a graduate workshop onsustainability, involving eight individualprojects representing a wide variety of sec-

tors and sustainabilitychallenges. Partici-pants in the sus-tainabil i ty studiesincluded: Alcoa ,B r i s t o l - M y e r sSquibb, TotalFinaElf,Johnson & Johnson,GlaxoSmithKline ,Pfizer, Ashland andInterGen Energy.

Student reportscovered a wide range

of topics, from integration of environmental tar-gets and measures into corporate goals, tohow internal awards are used to advanceenvironmental innovation, to application andtraining related to the fulfillment of nextgeneration environmental measures. Otherproject reports had a more external focus,such as: developing better ways to engagestakeholders and building a set of socialmetrics; obtaining a better understanding ofthe Dow Jones Sustainability Group Index; andthe purchase and preservation of biologically

...see ICSR page 8

New Program Director Joins the WEC

...LAC/CP from page 3

§ Devise and design with project partnersand bilateral development banks pilot projectsinvolving GSC and ICSR tools;§ Expand regional access to relatedInternet resources, including CP and ICSRcase studies, WEC CSR ManagementTools™, and other technical and financial re-sources; and§ Plan, execute, and seek additional fund-ing opportunities for follow-on training and ca-pacity building work in the LAC region.

WEC is also partnering with the Institutefor International Education and the SantoDomingo Chamber of Commerce to increaseregional access to practical Internet-based CPresources and conduct targeted training work-shops with the Santo Domingo Chamber of

Commerce. Contact Program Man-ager Isaac Skelton atisaac@wec.org.

WEC “Mapping the Journey” ICSR web site

...BOARD from page 1tee recommended capacity building activitiesas the Center’s priority focus in the comingyears. The committee also reaffirmed theBoard’s commitment to the IEF, InternationalCorporate Social Responsibility (ICSR) activi-ties, and our world-class Gold Medal Awardevent.

“WEC’s capacity building programs wouldshare management know-how, technical ex-pertise and infrastructure from industry, gov-ernment and academia with the developingworld,” explains Wayne Balta. WEC capacitybuilding programs would include future projectdevelopment in water and energy issues, train-ing, and greening supply chains.

This newsletter profiles many of theWEC’s programs and activities. We invite yourcomments and urge your valuable participa-tion in our common vision of a cleaner envi-ronment through capacity building. ContactIsaac Skelton, Program Manager and Editor,WEC Review, by phone (212)683-4700 x211or via E-mail at isaac@wec.org.

www.wec.org

activity which can fuel sustainable development. Thisis, of course, a matter of business of all types and sizes,from the very large to families or even single individu-als supplying goods and services. Experience showsthat a healthy economy, like a healthy ecology, has adiversity of sizes and types of businesses, often interre-lated and mutually dependent.

Trade to accelerate developmentPoor people trading with each other is valuable, buttrade with a wealthier group will accelerate develop-ment if surpluses can be transferred. Trade meansmarket access and fair terms of trade. And an agreedframework for trade, such as the WTO.For markets to operate, we need a regulatory frame-work. All markets need one. And if the revenuesgenerated from the economic activity – be they taxesor simply spin off benefits – as well as the effects ofthe activity are to be wisely used and controlled, soundgovernance structures are essential.So one needs economic activity, trade to acceleratewealth creation, a regulatory framework for markets,and sound governance which reflects the wishes ofsociety. In many countries we have none of theseand creating them will be a challenge.

Markets...Markets are sometimes seen as being impersonal andserving the interests mainly of large corporations.On the contrary, markets serve the interests of theindividual and the consumer. A key to the establish-ment of sound markets is to remove access barrierssuch as those which prevent the access of agricul-tural goods to any countries, or distort the marketthrough subsidies. Sustainable development is bestachieved through open, competitive, rightly-framedinternational markets that encourage efficiency andinnovation, both necessities for sustainable humanprogress. I believe that business remains the mostpotent force for wealth creation, but the extent towhich that wealth contributes to poverty eradicationdepends largely on societal choices. Countries withlow incidences of poverty have largely achieved thisthrough creating frameworks that encourage busi-ness enterprise, supplementing this with supportivewelfare programmes.

...and regulationBusiness people are not against regulatory frameworks.But what we do fear is detailed regulation whichattempts to specify in detail the means of delivery.Where the regulation specifies not just the standard,but exactly how it is to be achieved, which technol-ogy or formulation is to be used, the creativity of themarket is killed. For example we should set emissionand efficiency standards, but not mandate the tech-nology of the fuel to meet them. The competitiveexperimentation as to how to deliver the same per-formance in different but more resource efficientways is frozen. We lose the great benefit of competi-tion and the market. The fun and creativity goes outof the business and we simply fill our time ensuringour products meet ever more complex regulations.

Voluntary initiatives or international regulation?I believe strongly that high environmental and labourstandards are in no way a barrier to outstanding eco-nomic performance. To the contrary, the same sound

management of assets and people which delivers goodenvironmental and workplace performance deliversgood business performance. I have personally ob-served this virtuous combination in countless com-panies and operations around the world.Far from being a soft option, so called voluntaryinitiatives from international companies can lead theway in improvements around the world. As the samestandards are progressively ap-plied to suppliers, with supportand capacity building to ensurethat local suppliers can meet therequired standards over time,standards in business in thatcountry are progressively raised.Furthermore, if these standardshave been developed with stake-holders and publicly committedto, they effectively cease to be“voluntary”. Global informationsystems, global media, globalNGOs and increasingly discern-ing consumers ensure that fail-ure to live up to public commit-ments, even self imposed ones,are punished in the market place.

Sound Governance all roundWe have been talking about stan-dards and regulation as it applies to companies. Butof course one of the reasons that business activityand investment does not flow to certain countries isthe absence of an adequate overall governance frame-work – property rights, the rule of law, security, trans-parency, development of strong institutions of civilsociety – in which business can operate effectively.Business has a responsibility to work with others tostrengthen this governance structure. Individual busi-nesses can contribute, but local business organiza-tions can be very effective agents in this process,often in partnership with other actors in civil society.Business has to be an integral and contributing partof any effective governance framework, operating tohigh standards and with transparency. This includes acommitment to support the adoption of OECD guide-lines on corruption. Sound governance is somethingwe have to join hands to develop together.

Bringing business and governments togetherI have spoken about some of the respective fears ofgovernments and business on market access, on lib-eralized markets and regulation, on protectionism,and on sound governance frameworks. Early on inmy involvement in the work of BASD towards theJohannesburg Summit I became aware of anotherdifference between governments and business. Gov-ernments naturally take issues and agreements up to ahigh level, with general application of concepts. Thisis understandable given a government’s responsibil-ity for a country and for international relations. Busi-ness on the other hand tends to have a very clearsectoral industry sectoral focus, and look for progresson quite restricted fronts, but therefore with the pos-sibility of having more specific targets and timetablesto a solution.

Type I and Type II outcomesIf one had time to read the 250 page paper whichemerged from Prepcom III earlier this month, onemight think that the different approaches were irrec-

Excerpts from Sir Moody-Stuart’s Keynote, “The Road to Johannesburg”

oncilable. But help is at hand in the form of a clearlyemerging consensus for the need for Type I andType II outcomes at Johannesburg. Type II outcomeswill be partnership agreements between a limitednumber of part ies (business, NGOs, labourorganisations, IFIs, probably supported by some gov-ernments) to address a specific issue relating to sus-tainable development. It is essential that such agree-

ments have clear targets and timetables agreedbetween the partners, publicly announcedand publicly reported on. These initiativescan be supported in the overall intergov-ernmental agreement – thus linked back to aType I objective. The responsibility for de-livery and reporting rests with the partiesconcerned, but if there is general supportfor an initiative at inter-governmental level,one could expect a periodic review by theintergovernmental process. Business isstrongly in favour of this approach, whichoffers hope of real trackable outcomes be-ing gaining general support at Johannesburg.

The BASD initiatives websiteAs a contribution to the development ofType II initiatives for Johannesburg, BASDhas created a web site www.basd-action.net/initiatives on which we are accumulatinginitiatives. These range from the well estab-

lished but continually developing Responsible Careof the chemical industry, through others such asWireless Villages, the Mining Minerals and Sustain-able Development initiative and the Energy andBiodiversity Initiative, to very specifically targetedinitiatives such as the phase out of leaded gasoline insub-Saharan Africa. There are many others on the listincluding the very important work done by BusinessPartnerships for Development.

Opening up JohannesburgOne last initiative , this time spearheaded by BASDand UNDP, with assistance from IISD and others andlaunched here in New York at the beginning of thismonth. This is a multi-media showcase of sustainabledevelopment initiatives, a Virtual Exhibition whichwill use web technology to profile successful sus-tainable development projects from all over theworld, with interactive discussion between those sitesand the Summit venue in Johannesburg.. It will alsoprovide a worldwide webcast of proceedings duringthe Johannesburg conference and encourage partici-pation in the summit via a series of online exchanges(see www.virtualexhibit.net)Nitin Desai has expressed the hope that this will helpmake the WSSD the first truly interactive world sum-mit, making the summit delegates aware that there arepeople in the field doing innovative things in thepursuit of sustainable development and giving thosepeople a chance to participate in the summit process.

A hope for JohannesburgBusiness goes to Johannesburg with a clear upfrontcommitment to work with others to deliver moresustainable development. I am confident that herewill be trackable deliverables from outcomes.We have learned that no sector can deliversuch sustainable development on its own. Wemust work in partnership. By opening up theprocess I hope that we can increase the trustwhich is absolutely fundamental to success-ful partnerships.

7

Sir Mark Moody-Sturat, BusinessAction for Sustainable Develop-ment, speaking at WEC’s April IEFForum on Sustainability

...JOBURG from page 5

“Every Day is Earth Day” TM

Alcan Alcatel AlcoaAmerada Hess Ashland Inc.

AstraZeneca AT&T Aventis SABeiersdorf AG Black & Decker

Boehringer IngelheimBristol-Myers Squibb Cemex

ChevronTexaco Citigroup Inc.Dow Chemical Company DuPont

Duracell Eastman KodakEdison Mission Energy

General Motors GlaxoSmithKlineIBM InterGen Energy Inc.

Johnson & Johnson The LimitedMerrill Lynch Motorola Novartis

Occidental Otto VersandPfizer Inc. Philips Electronics N.V.

Ricoh Roche Rohm and HaasRoyal Dutch/Shell Group

S.C. Johnson & SonSchering AG Schlumberger

Seagate Technology SyngentaTextron TotalFinaElf Volvo

The World EnvironmentCenter was founded in 1974 as

an independent, non-profit,non-advocacy organizationwith seed funding from the

United Nations EnvironmentProgram (UNEP). Its initial

mandate was to increasepublic understanding of

international environmentalissues and the role of the UNand the international com-munity in achieving them.

Today, WEC works withthe private sector,

international organizationsand academia to advance

sustainable development byencouraging environmentalleadership, helping improvehealth and safety practices

worldwide, and fostering theefficient use of natural

resources to protect theglobal environment.

Multinational companiesfrom twelve industry sectors

in North America, Europe,Asia and Latin America

participte in the WECInternational Environment

Forum (IEF):

8

...ICSR from page 6

WEC • Review

able Development, Rohm and Haas Company(1990 Awardee); Ms. Sally Hopkins, VicePresident, Health Safety and Environment,Shell Oil Company (2001 Awardee); and Sr.Armando J. Garcia Segovia, Executive VicePresident for Development, CEMEX S.A. andMember of the WEC Board of Directors.

From government, The Honorable LindaJ. Fisher, Assistant Administrator, U.S. Envi-ronmental Protection Agency; The Honor-able Patricia Lynn Scarlett, Assistant Secre-tary for Policy, Management and Budget, andChief Financial Officer, U.S. Department of the

...TRADE from page 4Interior; The Honorable Emmy L. Simmons,Assistant Administrator of Economic Growth,U.S. Agency for International Development;The Honorable James L. Connaughton ,Chairman, White House Council on Environ-mental Quality; The Honorable Earl AnthonyWayne, Assistant Secretary for Economicsand Business Affairs , U.S. Department ofState; and Dr. Robert W. Slater, Senior Assis-tant Deputy Minister, EnvironmentCanada and Vice Chairman, WECBoard of Directors, who graciouslychaired the proceedings.

Washington, DC

Isaac Skelton, Editor419 Park Avenue South • Suite 500

New York, NY 10016 USA • Tel: (212) 683-4700Fax: (212) 683-5053 • E-mail: isaac@wec.org

Johnson; Jim Ball of Ashland and Chairman,Board of Environmental, Health and SafetyAuditor Certifications (BEAC), and DeirdreWilson, Director, WEC Corporate Programs.

A number of projects is now approachingimplementation through the efforts of thisgroup. The intention is to support companies’efforts by sharing areas of synergy and inspir-ing regular communication, as well as pro-viding technical support through the WEC.

An important tool is the WEC website –www.wec.org – and the IEF Online Services, orIOS Section. This password-protected site,dubbed “Mapping the Journey,” offersdownloadable CSR tools and useful links forIEF companies exploring pathways tosustainability. Presentation of these out-comes is planned for April 2003.

It is envisioned that, as we move furtheralong the process, we will begin to convergeour ICSR efforts with WEC’s Capacity Build-ing initiatives, and our member companiescan play an even stronger, more personalizedrole in the Good Deeds projects they have sogenerously funded over the history of the or-ganization.

diverse land.The Ashland study depicted how Mr. Jim

Ball, Manager Operations Auditing at AshlandInc. was able to customize the verification pro-tocol to assess their chemical suppliers inChina against both environmental and socialperformance indicators. It also led to a betterpartnership in that by gaining insight to thesuppl iers’ strengths and weaknesses,Ashland could then assist in raising the stan-dard in weak areas while having confidencein the strengths.

Jim Ball’s success story fueled the for-mation of the ICSR Operational WorkingGroup and launch of the Pilot Project Pro-gram. IEF companies from the chemical andpharmaceutical sectors are planning pilotstudies for 2002 in India and North America.

The ICSR Operational Working Group heldits first meeting on 9 July 2002 at the PfizerFacility in Morris Plains, NJ. The previous night,a newly formed steering committee met tochart the way forward. Committee membersinclude: ICSR co-chairs, Board MemberStephen Raab of InterGen Energy; and Mr.Jean-René Marabelle, Environment & Indus-trial Safety Division, TotalFinaElf; along withBoard Member Karl Schmidt of Johnson &

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