Creating a strategy for a better world - How the Sustainable Development Goals can provide the framework for business to deliver progress on our ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SDG Challenge 2019
Creating a strategy for
a better world
How the Sustainable Development Goals can provide
the framework for business to deliver progress on our
global challenges
Examples from business reporting
www.pwc.com/sdgchallenge
2 PwC | SDG Challenge 2019
Examples of how
companies are including
SDGs into their reporting
A few examples taken from the 8% of companies that mentioned the SDGs and provide
quantitative reporting against their ambitions (1% of all the companies in our full sample) helps
show how companies have started to integrate the SDGs.
Colombia’s Cementos Argos provides evidence of how ambition can be explained and
quantified. It mentions Sustainable Development Goals in an area of its integrated report1 that
deals with material issues. It highlights a specific SDG target 8.2: “Achieve higher levels of
economic productivity through diversification, technological upgrading and innovation”.
For Cementos Argos this means reaching “15% in the use of alternative materials in [its] cement
operations”.
It then sets a quantitative ambition for 2025 that is directly relevant to SDG target 8.2
(for Cementos Argos this is $15 million) and it provides quantitative evidence of current year
progress against the 2018 quantitative ambition ($9.8 million).
1 Argos, 2018 Integrated Report, https://sostenibilidad.argos.co/Portals/16/Doc/2018/eng/Integrated-report-2018.pdf
3 PwC | SDG Challenge 2019
Then there is Daiwa House Industry of Japan. This construction and real estate
company includes the SDGs in the value creation section2 of its integrated
report. To further communicate its commitment Daiwa House also explains how
the SDGs are integrated into its growth strategy. In the sustainability report3, it
highlights a specific SDG target 7.2: “By 2030, increase substantially the share of
renewable energy in the global energy mix”. It establishes a quantitative ambition
by 2017 that is directly relevant to SDG target 7.2. And it provides evidence of
current year quantitative reporting against the 2018 quantitative ambition.
South Africa’s Foschini Group provides another example. The clothing retailer’s
integrated report4 also has a strategy section that mentions the SDGs. In the
sustainability report5 it addresses Responsible Consumption and Production
(SDG12) and identifies target 12.5: “By 2030, substantially reduce waste
generation through prevention, reduction, recycling and reuse”, as a priority.
It then sets a quantitative ambition by 2030 that is directly relevant to SDG target
12.5 (achieve 85% recycling across its sites) and produces evidence of current
year quantitative reporting against the 2030 quantitative ambition (78% so far).
2 Daiwa House Group, Integrated Report 2018, https://www.daiwahouse.com/English/ir/ar/pdf/
daiwahouse_IR2018E_all.pdf
3 Daiwa House Group, Sustainability Report 2018, https://www.daiwahouse.com/sustainable/csr/
pdfs/2018/2018_csr_en_all.pdf
4 Foschini Group, Integrated Annual Report 2019, https://tfglimited.co.za/wp-content/uploads/
2020/02/Integrated-Annual-Report-2019.pdf
5 Foschini Group, Sustainability Overview Report 2019, https://www.tfglimited.co.za/wp-content/
uploads/2019/12/TFG_Sustainability_Report_13675_20190715_V8_SLS_10h55.pdf
4 PwC | SDG Challenge 2019
SDG Cementos Argos
reporting SUSTAINABLE DEVELOPMENT GOALS (SDG)
As a company, we have addressed the 2030 United Nations agenda call related to the SDGs and we are committed to carry out
forceful actions that help fulfill the universal purposes of ending poverty, protecting the quality of the planet and ensuring that all
Company embeds SDGs
examples
people have enough opportunities to have a dignified and peaceful life. into business strategy
1 Company mentions
‘Sustainable Development
To do so, we have: Goals’ in an area of the
Identified and prioritized four SDGs as the Provided different training exercises on the report considered to be
way to be more effective in contributing to subject in the organization. 1
the global initiative.
strategic (material issues)
Reviewed different methodologies and
Participated in workshops, forums taken as a framework of reference the Business
and referencing sessions that have enabled Reporting on the SDG initiative of the Global
us to understand the purpose of the Reporting Initiative and the Global Compact,
global initiative and be up to date to identify the goals, initiatives and indicators
on local and international ideas that through which the company monitors its
are intended to take the objectives and contribution to the SDGs.
goals to concrete actions.
The following chart shows the four prioritized SDGs and their relationship with the material issues. For their part, the goals
defined by the UN that we have selected as a guide for our management and the indicators through which we measure our
performance can be seen in the annex “Sustainability Program” on page 158.
License from Society
Community Engagement
to the Industry
License from Society to
Talent Management
the Industry
Circular Economy
Human Rights
Supplier Management
Sustainable Construction
Innovation in the
Business Model Occupational Health and
Safety
Energy Management
Model Community Engagement
Water Biodiversity
Source: Argos, 2018
Other Emissions Integrated Report, p9,
Occupational Health https://sostenibilidad.argos.co/
and Safety Climate Change Portals/16/Doc/2018/eng/Integrated-
report-2018.pdf
Ethics and Compliance Energy Management
Brand Management Model
5 PwC | SDG Challenge 2019
Cementos Argos
SUSTAINABILITY PROGRAM AND SDG DASHBOARD
Baseline Goal Baseline Target 2018 SDG target implementation
Material topic P. SDG Goal Indicator Unit Trend
year year value value result
score: 3
Obtain revenues of
SDG 9
Sustainable
USD $ 400 million (A-CS1) Total of
for our products with revenues from $ 2015 2025
USD$136 USD$400 USD$147 SDG targets mentioned
construction Goals 9ª millions millions millions
y 9.5
sustainability properties PSC with quantitative reporting
(PSC) against ambitions.
SDG 8 Reduce the heat KCal/k
Heat consumption 2013 2025 941 846 868
Energy consumption by 10% clínker Company mentions a
1
Management Goal 8.4 GRI (302-1)
Reduce the electricity KWh/t specific SDG target (8.2):
Model Electricity 2013 2025 116 99 125
Goal 13.2 consumption by 15%. cem “Achieve higher levels of
consumption
(A-EN1) % economic productivity
Achieve an 18%
replacement of heat
replacement of through diversification,
heat consumption % N/A 2025 N/A 18 5.1
consumption from the use technological upgrading and
from the use of
of alternative fuels. innovation.”
alternative fuels
(A-EC2) %
2 3 Company has a quantitative
Reach 15% in the use of alternative 2
SDG 8 alternative raw materials raw materials % N/A 2025 N/A 15 9.8 ambition by 2025 that is
in cement operations. in cement
Circular economy 1 Goal 8.2 directly relevant to SDG
operations
target 8.2
Goal 8.4 (A-EC3) %
Reach 15% of alternative alternative raw
raw materials in our materials in % N/A 2025 N/A 15 16.3 3
Evidence of current year
concrete operations. our concrete quantitative reporting
operations
against the 2025 quantitative
Accumulatively use (A-EC4) Tonnes
216,000 tons of recycled t 2017 2025 0 216,000 12,720
ambition
of recycled
aggregates. aggregates used
SDG 13 kgCO2/t
Emit 544 kg CO2/ton of (A-EC1) Specific 735*
Climate change material 2006 2025 544 616
cementing material. emissions of CO2 Baseline
Goal 13.2 cem
Carry out the inventory
of our Hg emissions for % inventory of
% N/A 2020 N/A 100% 82%
100% of the clinker our Hg emissions Source: Argos, 2018 Integrated
production. Report, p158,
SDG 8 Reduce our particulate GRI (305-7) https://sostenibilidad.argos.co/
g/t de
Emissions matter emissions to 60g/ Particulate matter 2015 2025 173 60 45 Portals/16/Doc/2018/eng/Integrated-
clínker report-2018.pdf
Goal 8.4 tons of clinker. emissions
Reduce NOX emissions to GRI (305-7) NOX g/t de
2015 2025 1,399 1,205 1,311
1,205 g/tons of clinker. emissions clínker
6 PwC | SDG Challenge 2019
1
Daiwa House Group
Company embeds SDGs
into business strategy
1 The company has a value
creation section in the
integrated report and it
mentions the SDGs
1
Source: Daiwa House Group,
Integrated Report 2018, p23,
https://www.daiwahouse.com/
English/ir/ar/pdf/daiwahouse_
IR2018E_all.pdf
7 PwC | SDG Challenge 2019
Daiwa House Group
SDG integrated into
business model
1 Within the value creation
section of the report, the
company has integrated
the SDGs into its growth
strategy
1
Source: Daiwa House Group,
Integrated Report 2018, p25,
https://www.daiwahouse.com/
English/ir/ar/pdf/daiwahouse_
IR2018E_all.pdf8 PwC | SDG Challenge 2019
Daiwa House Group
1
SDG target implementation
score: 3
SDG targets mentioned
with quantitative reporting
against ambitions.
1 Company mentions
a specific SDG target
(7.2): “By 2030, increase
substantially the share of
renewable energy in the
global energy mix”
2 Company has a quantitative
ambition by 2017 that is
directly relevant to SDG
target 7.2 (see broken line in
chart)
3 Evidence of current year
quantitative reporting
against the 2017 quantitative
ambition (see solid line in
chart)
3
2
Source: Daiwa House Group,
Sustainability Report 2018, p118,
https://www.daiwahouse.com/
sustainable/csr/pdfs/2018/2018_csr_
en_all.pdf9 PwC | SDG Challenge 2019
ABOUT
OUR REPORT
WHO
WE ARE
A MESSAGE FROM
OUR CHAIRMAN
HOW WE
CREATE VALUE
OUR
PEOPLE
OUR
STRATEGY
OUR
PERFORMANCE
HOW WE
GOVERN TFG APPENDICES
COMPANY INFORMATION
AND SHAREHOLDERS’ CALENDAR
Foschini Group
1
Company embeds SDGs
into business strategy
SUSTAINABILITY RISK OVERVIEW
1 The company mentions the
We recognise that TFG’s success depends on operating The most significant risks to the Group are similar
within a sustainable and inclusive society. Investors to those identified in previous years. SDGs in the strategy section
around the world are also starting to scrutinise how
companies monitor and mitigate their environmental
and social impacts. Sustainability is critical for the stable
Read more about our risks, risk methodologies and
combined assurance process in our Risk Committee
of the Integrated Annual
long-term growth of TFG. We employ over 29 000 people,
directly manufacture c.8,9 million apparel units and have
report on page 107.
Report.
Managing the risk of fashion and ensuring the desirability
a footprint that spans 4 085 outlets across 32 countries.
of merchandise remain material issues for all retailers.
We have a responsibility to prioritise sustainable
The Group’s buying processes, in-house design and
production and operations and to be transparent about
manufacturing capability, and focus on quick response and
the impacts arising from our business activities.
replenishment, are key differentiators in the mitigation of
An important milestone this year was selecting and these issues.
onboarding Sedex as a responsible business partner.
Read more about our material issues, risks and
Sedex is one of the world’s largest collaborative platforms
opportunities on page 33.
for sharing responsible sourcing data on supply chains.
The data is used to monitor TFG’s compliance with
OUTLOOK
leading labour, health and safety, environmental and
We take a measured approach to each of the major
business ethics standards. Importantly, this partnership
economic and retail environments we operate in and
will provide a broader understanding of supply chain risk
anticipate that conditions will remain challenging for
and how we can mitigate this.
the foreseeable future. We are however confident
We remain committed to our shared value strategy that our people’s commitment to successful strategy
and creating a positive social impact while delivering execution, underpinned by a relentless focus on digital
business value for TFG. We strengthened the alignment transformation and our commitment to making decisions
between our shared value approach and the four pillars that align with the TFG culture, will continue to produce
of our business strategy during the year. This included good results for the Group.
identifying financial and non-financial targets and
initiatives to evaluate performance, as well as value-add APPRECIATION
1 opportunities within the various elements of our B-BBEE
scorecard.
I am truly grateful for the guidance, support and
encouragement I have received during my first year as
Chief Executive Officer. This includes the support of our
ALIGNING OUR SUSTAINABILITY Chairman, Supervisory and Operating Boards, as well as
APPROACH WITH THE SDGs the various management teams across the business.
To further refine our sustainability To our employees – thank you for the ongoing and
strategy, we relooked how we engage pivotal role you play in the success of the Group. To
with the United Nations Sustainable our customers, shareholders, suppliers and other
Development Goals (SDGs). We stakeholders – thank you for your continued support.
previously reported against seven SDGs
and decided to reduce this to two – with I look forward to building on TFG’s past success as we
a primary focus on SDG 8 and SDG 12. look to the future and for innovative and exciting ways to
This is underpinned by SDG 17 as there bring new value to our customers.
are numerous partners we rely on to
effectively execute our sustainability
initiatives. We also identified targets Anthony Thunström
that are aligned to global targets per Chief Executive Officer
goal. This will enable our stakeholders
28 June 2019
to monitor our performance, thereby
enhancing the transparency of our
sustainability reporting.
More information about this is available in our online
sustainability overview report, which also includes detail Source: Foschini Group, Integrated
on our initiatives, progress and approach.
Annual Report, p52,
52 TFG integrated annual report 2019
53
https://tfglimited.co.za/wp-content/
www.tfglimited.co.za
uploads/2020/02/Integrated-Annual-
Report-2019.pdf10 PwC | SDG Challenge 2019
Foschini Group
PURPOSE
Achieving economic growth and sustainable development requires that we reduce our ecological SDG target implementation
footprint by changing the way we produce and consume goods and resources. Therefore, the score: 3
efficient management of our shared natural resources is important. This includes encouraging
industries, businesses and consumers to recycle and reduce waste while creating more efficient SDG targets mentioned
production and supply chains to shift the world towards a more resource efficient economy. with quantitative reporting
against ambitions.
1 Company mentions a
Global targets TFG’s annual targets and achievements specific SDG target (12.5)
Encourage companies, especially large 2 Company has a quantitative
Target What we achieved ✓ or ✗
and transnational companies, to adopt ambition by 2030 that is
sustainable practices and to integrate 2 x Social and Ethics Committee directly relevant to SDG
sustainability information into their meetings 2 ✓ target 12.5
reporting cycle
4 X Sustainability Steering 3 Evidence of current year
Committee meetings 4 ✓ quantitative reporting
against the 2030 quantitative
4 x Green Committee meetings 3 ✗ ambition
1 2 3
By 2030, substantially reduce waste ✓ or ✗
Target What we achieved
generation through prevention,
reduction, recycling and reuse Achieve 85% recycling at all our sites 78% ✗
By 2030, achieve the sustainable ✓ or ✗
Target What we achieved
management and efficient use of
natural resources Electricity consumption at head
Source: Foschini Group,
office – 20% reduction in kW/h 0,1% ✗
Sustainability Overview Report
2019, p20,
Electricity consumption in store –
https://www.tfglimited.co.za/
5% reduction in kW/h per m2 (4,8%) ✗ wp-content/uploads/2019/12/
TFG_Sustainability_
Paper consumption at head office – Report_13675_20190715_V8_
SLS_10h55.pdf
10% reduction in volume (2,2%) ✗
Paper consumption in store –www.pwc.com/sdgchallenge At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2020 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
You can also read
