Putting People Back into Sustainability - Welcome Human Capital Global Summit Paris, 3rd April 2019
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Welcome
Human Capital Global Summit
Paris, 3 April 2019
rd
Putting People Back into Sustainability
@CenterSHS
#CSHSParis
#humancapital
Human Capital Project
Mike Wallace
Partner, ERM & Special Advisor to CSHS
@CenterSHS
#CSHSParis
#humancapital
@CenterSHS #CSHSParis #humancapital
Bienvenue
Malc Staves
Corporate Health & Safety Director, L’Oréal
@CenterSHS
#CSHSParis
#humancapital
Safety Contact
Malcolm Staves
@CenterSHS
#CSHSParis
#humancapital
@CenterSHS #CSHSParis #humancapital
@CenterSHS #CSHSParis #humancapital
@CenterSHS #CSHSParis #humancapital
Network ID
LOREAL_EVENT
Password
loreal2017event
@CenterSHS
#CSHSParis
#humancapital
Why is L’Oréal hosting the
4th CSHS Human Capital Workshop?
Putting People Back into Sustainability –
what does this mean to L’Oréal?
@CenterSHS
#CSHSParis
#humancapitalAgenda
• Why are we here? • Lunch and refreshments
• Center for Safety and Health Sustainability (CSHS)
• Institution of Occupational Safety and Health (IOSH) • What are leading companies doing?
• American Society of Safety Professionals (ASSP) • L’Oréal
• Canadian Society of Safety Engineers (CSSE) • Nike
• Google
• What are the latest trends and developments? • AP Moller-Maersk
• ShareAction and Workforce Disclosure Initiative (WDI)
• Chartered Institute of Personnel and Development (CIPD) • How is corporate disclosure and reporting evolving
• EcoVadis • Global Reporting Initiative (GRI)
• Environmental Resources Management (ERM) • Sustainability and Accounting Standards Board (SASB)
• International Integrated Reporting Council (IIRC)
• Refreshments • Afnor Group & ISO
• What do investors want and expect? • Instructions for breakout sessions and refreshments
• Hermes Investment Management
• BNP Paribas • Feedback from breakout sessions
• Arabesque
• Closing remarks and next steps
• Keynote Speaker
• Paul Dickinson, CDP and ShareAction
@CenterSHS
#CSHSParis
#humancapitalWhy are we here?
1997 2000 2010 2012 2014 2018
2005 2011 2016 2017 2019
@CenterSHS
#CSHSParis
#humancapitalWhy are we here?
@CenterSHS
#CSHSParis
#humancapitalEvolution of a Profession
OHS > Sustainability > Human Capital
The report finds that
This white paper voluntary sustainability
provides an overview reporting on OHS
of emerging trends in lacks the degree of
sustainability and rigor necessary to
financial accounting allow key stakeholders
practices that will have to effectively evaluate
lasting ramifications corporate
for the occupational performance or
safety and health compare performance
profession. across organizations.
December 2015 August 2017
February 2013 June 2016 October 2017
The Best Practice A follow-up to the
The study revealed
Guide for 2013 study analyzed
troublesome gaps and
Occupational Health publicly reported data
a lack of transparency
and Safety in between June and
in occupational safety
Sustainability Reports December of 2016,
and health
provides occupational identifying changes in
sustainability
health and safety reporting practices
reporting among
professionals with over the past four
organizations rated
metrics and best years related to
highly for
practices in OHS occupational safety
sustainability
sustainability and health
performance.
reporting. sustainability.
Source: http://www.centershs.org/ourwork.php
@CenterSHS
#CSHSParis
#humancapitalToday’s Challenge
• How do we close the evidence gaps on the links / dependencies between OHS
performance and social, economic and environmental sustainability impacts?
• What are the key skill-sets for promoting and delivering OHS within the human capital
and sustainability agendas, who is affected and how can these skills best be developed?
• What types of opportunities, incentives and actions would motivate a change in the
voluntary measurement and public reporting of OHS within the human capital and
sustainability agendas, and who can best provide and promote them?
• What is the role of the Center in promoting evidence-based policy and practice;
opportunities; incentives; collective action and competence development?
@CenterSHS
#CSHSParis
#humancapitalWhy are we here?
• Kathy Seabrook, Chair, Center for Safety and Health Sustainability; Board, Social and Human
Capital Coalition
• Andrew Sharman, President Elect, Institution of Occupational Safety and Health (IOSH)
• Rixio Medina, President, American Society of Safety Professionals (ASSP)
• Trevor Johnson, President, Canadian Society of Safety Engineers (CSSE)
@CenterSHS
#CSHSParis
#humancapitalWhat are the latest trends and developments?
• Amy Metcalfe, Head of Programmes, ShareAction and the Workforce Disclosure Initiative (WDI)
• Edward Houghton, Head of Research and Thought Leadership, Chartered Institute of Personnel
and Development (CIPD)
• Pierre-Francois Thaler, Co-Founder & Co-CEO, EcoVadis
• Keryn James, Group CEO, Environmental Resources Management (ERM)
@CenterSHS
#CSHSParis
#humancapitalEvolution of the Concepts
The Harvard research (2017) looked at disclosure on
twelve topics selected from the Human Capital section of
RobecoSAM’s Corporate Sustainability Assessment (CSA).
▪ Training Hours
▪ Training Cost
▪ Return on Training
▪ Employee Development
▪ Employee Development Business Benefits
▪ Employee Development Qualitative
▪ Operating Profit per Employee
▪ OHS Framework
▪ OHS Oversight
▪ OHS Work Environment
▪ Lost-Time Injuries
▪ Fatalities
@CenterSHS
#CSHSParis
#humancapitalAmy Metcalfe
Head of Programmes, ShareAction and
Workforce Disclosure Initiative (WDI)
@CenterSHS
#CSHSParis
#humancapitalWorkforce Disclosure Initiative @WDIwork 120+ investor signatories WDI partner $13.5 trillion AUM organisations
• 90 companies • Workers in 100+ countries • Supply chains include 1.5m firms
Companies must articulate how they manage workforce risk
Disaggregated data = a gap to fill
Pay attention to low paid workers
Investor expectations are rising
Champion the workforce being at the heart of business management and decision making Gather disaggregated data across your supply chain on workforce composition, hours and wages Impact on workers is key and what investors want to understand Anticipate greater scrutiny from investors. Encourage your company to engage with them on these issues
@WDIwork shareaction.org/WDI
Edward Houghton
Head of Research and Thought Leadership, Chartered
Institute of Personnel and Development (CIPD)
@CenterSHS
#CSHSParis
#humancapitalMaking “good work” a reality
Are we asking the right questions of business and
policy makers?CIPD’s purpose
Championing ...by improving practices in
people and organisation
better work development...
and working
...for the benefit of
lives... individuals, businesses,
economies and society.Money How do Relationships,
employees psychological safety
know if their
Terms of employment
work is “good”?
Health and well-being
Job design
Work-life balance
Voice and representationDo investors seek and use people data? • Businesses should take the lead in reporting workforce information more readily. • Management quality is a key information category for investors – but what does it mean? • New standards can help e.g. ISO 30414 Human Capital Reporting • Investors: are they asking the right questions?
‘HR-related factors end up ‘It How
tends todo be more a case
influencing decisions 100% of ofemployees know
reinforcing our view of if
the time. Top management is management quality when we
always the big driver. If they are see their work
that the is is
workforce
competent, the issues with the “good”?
managed well. Or, potentially,
rest of the firm are solvable. If when it’s not managed well, that
there are potential problems erodes our view of management
with top management, […] quality.’
chances are you’ve got issues
further down the line.’
Investment director, Fund manager, a.u.m.
a.u.m. £170m £33.5bnAre corporate reports transparent? • Define 7 types of people risk: • Talent management • Health and safety • Diversity and equality • Employee relations • Business continuity • Reputation • Employee ethics • Clear reporting on wellbeing and diversity • Lack of insights on critical business risk
Roles of the future people profession
Digital enablement De-constructing and
People broker
of human potential re-constructing the system
of work
Facilitating and World of work
relationship building horizon scanning HumanisingPierre-Francois Thaler
Co-Founder & Co-CEO, EcoVadis
@CenterSHS
#CSHSParis
#humancapitalESG Ratings for Supply Chains
Center for Safety and Health Sustainability
Human Capital Project - Paris, 03 April 2019
42
Document Classification: EcoVadis PublicA Complex Challenge…
CO2 footprints
Buyers Suppliers
● Time-consuming ● Duplicate efforts
● No reliable indicators ● No standards
● Not scalable ● Little feedback
43 43
43
Document Classification: EcoVadis PublicWe are enabling a Global CSR Ratings Network
300+ MNCs / Brands 50,000+ Assessed companies
12,000 buyers ● ~1Tn$ spend 70% SMEs ● 150 categories ● 120+ countries
44
Document Classification: EcoVadis ConfidentialAssessment: EcoVadis Rating Model
Third-Party
Professionals
(ex Certificates)
Company
Management
System
(questionnaire)
Validation Scorecard
Stakeholders
(360 Watch)
45 45
45
Document Classification: EcoVadis ConfidentialA Robust Methodology: 21 CSR Criteria Covered
LABOR & HUMAN SUSTAINABLE
ENVIRONMENT ETHICS
RIGHTS PROCUREMENT
Policies - Actions - Results
• Energy Consumption & GHGs • Employee Health & Safety • Corruption • Supplier Environmental Practices
• Water • Working Conditions • Anticompetitive Practices • Supplier Social Practices
• Biodiversity • Social Dialogue • Responsible Information
• Local & Accidental Pollution • Career Management Management
• Materials, Chemicals, & Waste & Training
• Product Use • Child Labor, Forced Labor &
• Product End-of-Life Human Trafficking
• Customer Health & Safety • Diversity, Discrimination &
• Environmental Services & Advocacy Harassment
• External Stakeholder Human
Rights
46 46
46
Document Classification: Restricted Use (Customer, CSM, EVS, SEN)H&S Measures: Size comparison
Size as per EcoVadis classification : Small (26-99 employees) - Medium (100-999) - Large (>1000 employees)
47 47
47
Document Classification: EcoVadis PublicH&S Actions : ISO45001 / OHSAS18001 certification
14% of all assessed companies with at least 1 site certified to ISO45001/ OHSAS18001 (+6,000 companies)
Global average
48 48
48
Document Classification: EcoVadis PublicH&S Reporting
49 49
49
Document Classification: EcoVadis PublicFocus on Large Manufacturing Companies (N=4000)
50 50
50
Document Classification: EcoVadis PublicInvestors & Supply Chain ESG Ratings
Investors • Scalability
ESG Ratings • Private companies (no disclosures)
For investors
• Engage suppliers into improvements
5000 Large Cap • Focus on supply chain issues (ex Tier2)
• Easy to use & understand
EcoVadis
2M+ Suppliers
51 51
51
Document Classification: EcoVadis PublicTHANK YOU
Pierre-François Thaler
pfthaler@ecovadis.com
52
Document Classification: EcoVadis PublicKeryn James
Group CEO, Environmental Resources Management (ERM)
@CenterSHS
#CSHSParis
#humancapitalSafety as a human capital
issue
Keryn James, CEO ERM
Update image
CSHS Human Capital Project - Global Summit
Paris
3 April, 2019
© Copyright 2019 by ERM Worldwide Group Limited and/or its affiliates (‘ERM’). All Rights Reserved.
No part of this work may be reproduced or transmitted in any form or by any means, without prior
written permission of ERM.
The business of sustainabilityERM Global Safety Survey
22 120Countries Companies
72%
Global
6.8M $4.3T
Employees Annual Revenues (USD) Directors/VPs
www.erm.comKey findings
1 Stakeholder
expectations are rising
Key
Findings 3 Risk continues to shift to
contractors
Most companies do not
2 understand how much they
are investing in safety
www.erm.comStakeholder expectations
88% “
of respondents agreed or strongly
agreed that the safety performance
expectations placed on them by We are already performing 30
Stakeholders are increasing times better than others in our
industry, but our stakeholders
expect the bar to be raised
”
agreed/strongly agreed that year after year.
62% regulators are taking an increasingly
tougher stance in relation to safety
performance.
www.erm.comLagging performance indicators remain dominant
How do you assess the effectiveness of your investments in safety?
% or respondents who citied technique
80%
70%
60%
50%
40%
30%
20%
10%
0%
Incident statistics (lagging Leading indicators Safety culture surveys / employee Audit processes Cost/Benefit Analysis techniques
indicators) engagement surveys
www.erm.comKey findings
1 Stakeholder
expectations are rising
Key
Findings 3 Risk continues to shift to
contractors
2
Most companies do not
understand how much they
are investing in safety
www.erm.comInvestment into Human Capital and Safety
Average Estimated Investment in Safety as a % of Labour Costs by Sector
30%
25%
20%
15%
10%
5%
0%
O&G Mining & Metals Manufacturing Chemical Pharma. Power Food, Beverage & TMT Transport
Agri
www.erm.comWhere is the investment going? We developed a comparative index2 to determine the relative scale of investment in the five focus areas of the study. Leadership Engagement and Culture Change stands out – by far – as the highest priority Leadership Engagement and Culture Change 13.5 Contractor Management 8.5 Training and Competency 7.7 Construction Safety 5.1 Fatality Prevention 3.9 www.erm.com
Companies are increasing their investment
82% planning to increase
their investment in safety
over the next 3 years with a
quarter planning to increase
spending by more than 15%
78% increased their level of
effort in safety over the past 3
years
www.erm.comWhat we learned
1 Stakeholder
expectations are rising
Key
Findings 3 Risk continues to shift to
contractors
2
Most companies do not
understand how much they
are investing in safety
www.erm.comContractor management
72% of respondents reported increasing
use of contractors.
reported their contractors are undertaking more
55% hazardous activities than the company’s own
employees.
69% regard managing contractor safety as more challenging
than addressing safety for their own employees.
www.erm.comSo what can we learn?
A leadership challenge
identified leadership engagement
(at all levels) as the most effective
means of delivering behavioural
change on the front line
www.erm.comKeryn James
Thank you Chief Executive Officer
ERM
The business of sustainabilityBreak
10.30am – 10:45am
Signature
@CenterSHS
#CSHSParis
#humancapitalSustainability > Human Capital > OHS
@CenterSHS
#CSHSParis
#humancapitalWhat do investors want and expect?
• Natacha Dimitrijevic, Senior Engager, Hermes Investment Management
• Adam Kanzer, Head of Stewardship, Americas, BNP Paribas
• James von Claer, Director, Arabesque
@CenterSHS
#CSHSParis
#humancapitalEvolving Investor Interest in Human Capital
When engaging boards on performance to executive employee health and safety
HCM we are likely to discuss: compensation to promote board and complying with
accountability occupational health and
Oversight of policies meant to
protect employees (e.g., Board member visits to safety policies
whistleblowing, codes of establishments or factories to
Voluntary and involuntary
conduct, EEO policies) and the independently assess the
turnover on various dimensions
level of reporting the board culture and operations of the (e.g., seniority of roles, tenure,
receives from management to company gender, and ethnicity)
assess their implementation
When engaging Statistics on gender and other
Process to oversee that the management teams, the diversity characteristics as well as
many components of a topics we may cover promotion rates for and
company’s HCM strategy align compensation gaps across
include:
themselves to create a healthy different employee
culture and prevent Policies to encourage demographics
employee engagement
unwanted behaviors Programs to engage
outcomes and key drivers (e.g.,
Reporting to the board on the wellness programs, support of organized labor and their
integration of HCM risks into risk representatives, where relevant
employee networks, training
management processes Systems to oversee matters
and development programs,
Current board and employee and stock participation related to the supply chain
composition as it relates to programs) (including contingent
diversity workers, contractors and
Process for ensuring
Consideration of linking HCM subcontractors)
@CenterSHS
#CSHSParis
#humancapital
/ 71Evolving Investor Interest in Human Capital
2014 2015 2016 2017 2018
fair labor workforce total headcount, “broken gender diversity; workforce workforce
practices; health demographics; down by the division employment type, such composition, composition,
and safety; workforce stability; between full-time and as full-time, part-time or unionization, worker worker welfare,
responsible workforce composition; part-time employees, agency workers; staff participation in investment in skills
contracting and workforce skills and gender, and diversity”; turnover; accidents, decision-making, OHS and worker
diversity capabilities; workforce Annual turnover— injuries and workplace practices, training and representation.
culture and including both planned illnesses; investment in development and
empowerment; and regrettable turnover; training and employee
workforce health and Investment in training, development; pay ratios compensation
safety; workforce skills, and professional between the highest policies.
productivity; human development; Employee paid and median and
rights; workforce engagement score lowest quartile workers
compensation and across the company;
incentives and employee
engagement scores.
Sources: Corporate Disclosure of Human Capital Metrics. October 2017. Retrieved from: https://lwp.law.harvard.edu/files/lwp/files/pension_paper_corporate_disclosure_of_human_capital_metrics_102317.pdf
CSHS Human Capital Project. http://www.centershs.org/human-capital.php
@CenterSHS
#CSHSParis
#humancapitalEvolving Investor Interest in Human Capital
@CenterSHS
#CSHSParis
#humancapitalWhat do investors want and expect?
• Natacha Dimitrijevic, Senior Engager, Hermes Investment Management
• Adam Kanzer, Head of Stewardship, Americas, BNP Paribas
• James von Claer, Director, Arabesque
@CenterSHS
#CSHSParis
#humancapitalPaul Dickinson
Executive Chair
CDP
@CenterSHS
#CSHSParis
#humancapitalHuman Capital Project Paul Dickinson Executive Chair 3rd April 2019
$35 TRILLION 31 5.5
Combined value of the GIGATONNES TRILLION
world's largest companies
by market capitalization, of GHG emissions produced Estimated global market
according to MSCI. That's globally each year, that's for low-carbon goods and
twice the GDP of the USA equivalent to 8,139 coal power services. That's half of
in 2015. stations. China's GDP in 2015.OUR VISION & MISSION We want to see a thriving economy that works for people and planet in the long term. We focus investors, companies and cities on taking urgent action to build a truly sustainable economy by measuring and understanding their environmental impact.
ABOUT CDP
CDP is a global environmental impact non-profit working to secure a thriving
economy that works for people and planet.
Information is the fundamental basis for action. We help investors, companies and
cities to measure, understand and address their environmental impact.
The world’s economy looks to CDP as the gold standard of environmental
reporting with the most comprehensive dataset on corporate and city action.
We aim to make environmental reporting mainstream and provide detailed
insights to drive action for a climate safe, water secure, deforestation free world.HOW WE WORK
Investors and purchasing companies use
CDP to make informed decisions, reward
companies with superior performance and
drive action.
COMPANIES &
INVESTORS & Request Measure
SUPPLIERS
COMPANIES environmental their impact
information to improve
through CDP performance
Companies take action to
tackle climate change,
safeguard water resources
and prevent the destruction
of forests.
Companies and suppliers provide data on
environmental impacts, risks, opportunities,
investments and strategies.HOW WE WORK
525+ investors with US$96 trillion in assets
110+ supply chain members with over US$3 trillion in purchasing power
7,000+ companies responded through CDP
620+ cities disclosed environmental information
120+ states and regions measured their environmental impactsCDP IN 2018 AND BEYOND
Moving to sector-based disclosure;
Requesting more forward-looking metrics to assess how companies are
planning for the transition to a sustainable economy;
Integrating the Task Force on Climate-related Financial Disclosure
recommendations into the disclosure platform;
Greater alignment across climate change, water security and deforestation;
A new robust reporting platform for companies and cities disclosure.Paul’s conceptual framework for considering society
CDP growth fueled by Supply Chain 1. Growth in companies disclosing to CDP since 2003
Wishing this event great success!
Thank you!
paul@cdp.netLunch and refreshments
12.00pm – 1:15pm
Bon Apétit!
@CenterSHS
#CSHSParis
#humancapitalWhat are leading companies doing?
• Eric Wolff, Corporate QEHS Director, L’Oréal
• Sittichoke Huckuntod, Director, Health, Safety & Environment, Nike
• Anita Tarab, Global Director of Sustainability, Environment, Health & Safety, Google
• Kevin Furniss, Vice President – Head of Corporate Safety, A.P. Moller-Maersk
@CenterSHS
#CSHSParis
#humancapitalCorporate Board Perspective (NACD)
@CenterSHS
#CSHSParis
#humancapitalWhat are leading companies doing?
• Eric Wolff, Corporate QEHS Director, L’Oréal
• Sittichoke Huckuntod, Director, Health, Safety & Environment, Nike
• Anita Tarab, Global Director of Sustainability, Environment, Health & Safety, Google
• Kevin Furniss, Vice President – Head of Corporate Safety, A.P. Moller-Maersk
@CenterSHS
#CSHSParis
#humancapitalHow is corporate disclosure and reporting evolving?
• Laura Espinach Tort, Senior Manager, Global Reporting Initiative (GRI)
• David Parham, Director of Research, Projects, Sustainability Accounting Standards Board (SASB)
• Jonathan Labrey, Chief Strategy Officer, International Integrated Reporting Council (IIRC)
• Laurence Breton-Kueny, Director of Human Resources, Afnor Group; Member ISO TC 260
@CenterSHS
#CSHSParis
#humancapitalWhy are we here?
1997 2000 2010 2012 2014 2018
2005 2011 2016 2017 2019
@CenterSHS
#CSHSParis
#humancapitalThe Corporate Reporting Dialogue
Observer
@CenterSHS
#CSHSParis
#humancapitalHow is corporate disclosure and reporting evolving?
• Laura Espinach Tort, Senior Manager, Global Reporting Initiative (GRI)
• David Parham, Director of Research, Projects, Sustainability Accounting Standards Board (SASB)
• Jonathan Labrey, Chief Strategy Officer, International Integrated Reporting Council (IIRC)
• Laurence Breton-Kueny, Director of Human Resources, Afnor Group; Member ISO TC 260
@CenterSHS
#CSHSParis
#humancapitalBreakout workshop facilitators
• Room 1 – Richard Jones, Head of Policy and Public Affairs
Institution of Occupational Safety and Health (IOSH)
• Room 2 – Ruth Wilkinson, Head of Health and Safety
Institution of Occupational Safety and Health (IOSH)
• Room 3 – Jonathan Nobbs, Head of Product
Institution of Occupational Safety and Health (IOSH)
• Room 4 – Alan Stevens, Head of Global Engagement and Partnerships
Institution of Occupational Safety and Health (IOSH)
@CenterSHS
#CSHSParis
#humancapitalBreakout workshop instructions and refreshments
• How do we close the evidence gaps on the links / dependencies between OHS
performance and social, economic and environmental sustainability impacts?
• What are the key skill-sets for promoting and delivering OHS within the human capital
and sustainability agendas, who is affected and how can these skills best be developed?
• What types of opportunities, incentives and actions would motivate a change in the
voluntary measurement and public reporting of OHS within the human capital and
sustainability agendas, and who can best provide and promote them?
• What is the role of the Center in promoting evidence-based policy and practice;
opportunities; incentives; collective action and competence development?
Report back at 4:15 please
@CenterSHS
#CSHSParis
#humancapitalBreakout session feedback
@CenterSHS
#CSHSParis
#humancapitalNext steps and closing comments
@CenterSHS
#CSHSParis
#humancapitalMerci et au revoir!
Developed in partnership with:
@CenterSHS
#CSHSParis
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