Slides from Laura Musikanski's Triple Bottom Line Reporting workshop in Seattle, July 2010. See http://sustainableseattle.org/Programs/emergingppi/STARs/classes/20100715_TBL/ for background information and http://www.slideshare.net/sustainableseattle/getting-to-tbl-metrics for Burr Stewart's guest lecture at the same class.
Triple Bottom Line Reporting workshop slides, Laura Musikanski, July 2010
1. Triple Bottom Line Reporting July 2010 Laura Musikanski, JD, MBA, CEM, CELR Executive Director, Sustainable Seattle [email_address]
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10. Areas of focus in Our Common Future, 1987 Security Oceans Urban Growth Industry Energy Species & Ecosystems Population & Human Resources Food Scarcity Economy Sustainable Development
11. Defining Triple Bottom Line Reporting Sustainability is practiced by managing environmental, social and economic impacts. Social Economic Environmental SYNERGY
15. Establishing a common language - Graphics Economy Jobs, Prosperity, Wealth creation Environment Natural Resources Biodiversity Society Social Equity Sense of community Healthy Ecosystems Thriving Local Economy SUSTAINABLE DEVELOPMENT
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18. And the issue of establishing a common language…. How do we do this? An Ecosystem Interconnected & interdependent
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20. Terms Triple Bottom Line Corporate Responsibility Citizenship Reports Corporate Social Responsibility EMS Accountability Environmental, Social and Economic Stewardship Community Reports
27. Background Growth in reporting: Europe North & Central America Asia South America Australia African & Middle Eash
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37. Short History of TBL Reporting 1790 Stock Market Crash SEC FASB & GAAP 1929 1902 Census Bureau Created Great Depression First US Census 1930 1972 1934 Securities Act 1933
38. Short History of TBL Reporting 1962 Silent Spring National Environmental Protection Act 1970 EMS Systems & Env Regs 1992 1983 Brundtland Rio Declaration 1989 Exxon Valdez GRI 1997 Kyoto Protocol 2005 Katrina Inconvenient Truth, IPCC 4 2006 AB-32: CA Global Warming Solutions Act 2000 Enron 2002 SOX
39. Short History of TBL Reporting 2008 Climate Action and Green Jobs (HB 2815) 2010 RGGI comes into effect American Clean Energy and Security Act (H.R. 2454) Passed in House Jun 26, 2009 – Senate? Cap & Trade, 17-percent emissions reduction from 2005 levels by 2020, 80% by 2050, Electric utilities- Renewable energy portfolio 20% by 2020. EPA to regulate GHG emissions from light vehicles 2009
40. Short History of TBL Reporting 2008 2010 Sweden- Swedish Annual Accounts Act, Accounting Modernisation Directive 2003/51/EC Amendment in 2007: state-owned companies to present, from 2009, sustainability reports, independent & in accordance with GRI 2007 France- Nouvelles Régulations Economique Australia Environment Protection and Biodiversity Conservation Act 1999, S516A - Australian Government agencies report on their sustainability performance as part of Annual Reports. 2001 2003 Denmark – Financial Statement Act. Large companies must disclose corporate social responsibility SEC –guidance on climate change risk disclosure ISO 26000 to be released Watch- - Africa & South America
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45. Global Reporting Initiative Environment Labor Practices & Human Rights Communication Public Relations Social Service/Good Responsibility Economic & Financial Basic Sustainability Framework
46. Triple Bottom Line Subject Areas Social Economic Environmental Financial Performance Product Responsibility Consumer Issues Community Development Communication Materials Waste and Recycle Biodiversity Governance Fair Operating Procedures Labor Practices Human Relations Integration Energy Emissions Water
101. TBL reports – Water and Basic Needs Foreign Policy, Washington Post
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161. Drivers: The Triple Bottom Line Social Economic Environmental Reduce Costs & Increase Revenues Emerging markets Manage risks Resource Limitations Regulations & Laws Attract & retain quality talent License to operate Reputation HIGHEST POTENTIAL
162. Drivers Ethics Quality of Life Long term value Alignment with Organization First to Market Goodwill Branding Departmental and Agency Directives Stakeholder Expectations Shareholder Resolutions Regulations and Requirements
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170. Greenhouse Gases Greenhouse Gas CO2 equivalent units Carbon dioxide 1 Methane 21 Nitric oxide 310 Hydroflorocarbons 1,300 Perflorocarbons 6,500 Sulfur hexfloride 23,900
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185. GHG Emissions Partner with Bonneville Environmental Foundation Green Tags Program 1. Employee survey of Employees atHQ – sample size of 750 - actual miles traveled, type of transportation & the number of days for each type. 2. Sample process for distribution center 3. Estimates for nationwide based on initial survey and sample Company Travel booking software and CO2 estimates from Climate Neutral Network Based on estimates from identified activities i.e.hydrofluorocarbon gas that escapes from air-conditioning systems during routine maintenance 2008 REI Stewardship Report
186. GHG Emissions Goods Inbound: Sea Shipments : calculation based on container loads based on the container-miles. CO2 per container mile data published by the clean cargo group accounting for the average of all container ships. Truck Transport : ton-mile calculation used the vendor location, distance of the shipment and the freight weight to arrive at a total ton-miles of freight CO2 impact per ton mile derived from the average values published for "less than truckload" freight shipments and based on company calculations Direct Delivery- total ton-miles of freight multiplied by the average impacts of parcels and company calculations 1. Goods inbound - from vendors or factories to our distribution centers or stores 2. Intra-company transfers - shipments from our distribution center to our stores, between stores, or from stores back the distribution center. Inter-company transfers Compute total freight “ton-miles” based on total tons of cargo, number of deliveries and the distance from the distribution center to each store & use national average truck fleet data for fuel mileage (7 miles/gallon) and truck hauling weight) along with a standard conversion from diesel fuel gallons to pounds of CO2 (22.2 pounds/gallon) to arrive at a factor for pounds of CO2 per freight ton-mile. 2006 REI Stewardship Report
187. GHG Emissions Kilowatt hours from electricity bills for stores, headquarters and distribution center, with CO2 estimates based on the EPA Power Profiler, except in WA – based on Washington State Department of Community Trade and Economic Developments (CTED) for 2005 . Natural Gas: Not stated Direct Fulfillment; Ground- assumed the average shipping distance is 1342 miles CO2 based on average package weight shipped with used the same CO2 factor computed for truck delivery. Air- adjusted the average weight of a package compared to a person with CO2 estimates based on Climate Neutral Network. 2008 REI Stewardship Report
189. GHG Emissions – Global Source: European Commission, Joint Research Centre (JRC)/Netherlands Environmental Assessment Agency (PBL). Emission Database for Global Atmospheric Research (EDGAR), release version 4.0. /2009 . http://edgar.jrc.ec.europa.eu
217. Life Cycle Analysis Timberland’s Eco-label Climate Impact Resource Consumption Chemical Use The Timberland Company, 2006 Corporate Social Responsibility Report
219. Adapted from Office of Sustainability and the Environment Lifecycle Social Benefit Assessment Lifecycle Fiscal Assessment Building community and enhancing social capital Improved pedestrian access Indoor environmental quality and occupant health Future proofing Public art / improved aesthetics Deconstruction of existing facility/ building re-use Water efficiency, rainwater harvest Stormwater management and water recharge Energy and atmospheric impacts Habitat diversity and ecological function Advancing thriving economy and social justice Crime deterrence Initial capital costs Energy costs Facility flexibility -- costs to upgrade or adapt Disposal costs Materials and resource selection Water costs Staffing costs Janitorial costs Maintenance costs – equipment durability Integrated universal access Preservation/ enhancement of neighborhood character Green Building and Sustainable Development Ordinance TBL LCA for Infrastructure Lifecycle Environmental Assessment Meeting needs of historically underserved Community/neighborhood economic development contributions Transportation connectivity Inclusive public involvement process Revenue generation capacity
220. The Stream King County Equity & Social Justice Initiative, Equity Report 2008 Upstream: Everyone in all communities should have these conditions Midstream: Move people from conditions that decrease health & well-being to conditions that support them Downstream: Act to change behaviors or conditions causing stress and poor health Pro-Equity Policies No Racism Affordable Housing Access to Transportation Good Paying Jobs Quality Education Healthy Environment Low Birth Weight Incarceration Need action at Societal Level Need action at Individual and Family Level Safe Neighborhoods Obesity Untreated Mental Illness Access to Healthcare Poor Health Status Homelessness Fair Standards of Living Physical Activity Need action at Community Level
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222. Stakeholders Stakeholders: Present And Future Customers, Indigenous & Vulnerable Peoples & Media & Public Shareholders & Investors Employees Governmental Agencies & Law Enforcement & Elected Officials Suppliers & Distributors & Transportation Agencies Industry Partners & NGOs & Associations