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E N V I R O N M E N TA L M A N A G E M E N T R E P O R T Focus on Environment & Corporate Responsibility Communications ENVIRONMENTAL MANAGEMENT REPORT Trends and Best Practice in Environmental and Corporate Responsibility Communications ENVIRONMENTAL MANAGEMENT REPORT Trends and Best Practice in Environmental and Corporate Responsibility Communications Jane Taylor and Kerry Wastell First published in the UK in 2006 by BSI 389 Chiswick High Road London W4 4AL © British Standards Institution 2006 All rights reserved Except as permitted under the Copyright, Designs and Patents Act 988, no part ofthis publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, photocopying, recording or otherwise – without prior permission in writing from the publisher Whilst every care has been taken in developing and compiling this publication, BSI accepts no liability for any loss or damage caused, arising directly or indirectly in connection with reliance on its contents except to the extent that such liability may not be excluded in law The rights of Jane Taylor and Kerry Wastell to be identified as the authors of this Work have been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 988 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library BSI order ref BIP 21 03 ISBN 0-580-48671 -0 Typeset in Akzidenz Grotesk and Minion by Helius, Brighton and Rochester Printed in Great Britain by MPG Contents About the authors xiii Acknowledgements xv Executive summary xvii Introduction to communicating CR and the environmental agenda The CR agenda, environment and sustainable development How does an organization address the whole CR agenda? Trends in corporate responsibility Wake- up calls Introduction to communications Communications overview The role of culture in the CR agenda 12 Make your communication strategy work 15 The essential guide to communicating your CR agenda 23 Introduction 23 One size does not fit all 23 The essential CR communication guide 24 Summary of the key communication challenges 32 Where are you now? 33 Why choose to communicate CR and environmental performance? 37 What’ s driving CR? 37 UK Government sustainability strategy to 202 38 Opportunity: improving environmental performance offers opportunity for financial gain 40 Stakeholders are asking ( and want the right answers! ) 41 CR reporting: offering potential increase in brand value? 44 Results of failing to provide CR information 48 EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COMMU N I CATION S External communication – what message you want to convey? 49 Introduction 49 Setting a vision for your external communications strategy 49 Information packaging: external communication formats and tools 52 Resourcing a new communications strategy 54 Evaluating success 55 Internal communication: what is the message? 57 Introduction 57 Nine key internal messages 57 Ten initiatives to communicate through action in the workplace 58 Guide to internal communications 58 Communication planning: structuring your internal vi communication programme 60 Changing internal culture and attitudes 64 How human behaviour, lifestyles and learning can contribute to effective communication of a CR agenda 69 Introduction 69 Human behaviour 69 Lifestyle 70 How people learn 73 Stakeholder dialogue – trends and best practice 85 Introduction 85 The Aarhus Convention 86 AA1 000SES: AccountAbility Stakeholder Engagement Standard 87 Annual Global Stakeholder reporting 89 Other standards 90 Summary 92 Formal external guidelines and frameworks – trends and best practice 93 Introduction 93 Measurement and reporting of CR performance: which standard? 93 The Global Reporting Initiative ( GRI) 95 The AccountAbility Assurance Standard ( AA1 000) 95 CON TEN TS Department of the Environment Food and Rural Affairs (DEFRA) 97 Environmental management system (EMS) external reporting 98 Business in the Environment (BIE) Annual Environment Index 00 UK Department of Trade and Industry (DTI) Framework 02 Confederation of British Industry (CBI) Probe Series 02 The Natural Step (TNS) and Forum for the Future 03 Advisory Council on Business and the Environment (ACBE) checklists 04 Other guidance for measuring and benchmarking CR performance 05 10 Legal requirements for information disclosure and reporting Introduction 107 07 Operating and financial review (OFR) and enhanced directors report (EDR) requirements 07 Environment Agency and local authority public registers 111 Environmental Information Regulations (EIR) 2004 112 11 Case studies: communications and best practice 115 Introduction to the delivery of CR performance in practice 115 Case studies in brief 115 In depth case studies 119 Appendix 1: Glossary 135 Appendix 2: Review ofreporting frameworks and monitoring tools described in Chapter 137 Section : The Global Reporting Initiative (GRI) 37 Section 2: The AccountAbility Assurance Standard (AA1 000) 39 Section 3: Department of the Environment Food and Rural Affairs (DEFRA) Section 4: Environmental management system external reporting 40 42 Section 5: Business in the Environment (BIE) and Business in the Community (BitC) 45 Section 6: UK Department of Trade and Industry (DTI) 46 Section 7: Confederation of British Industry (CBI) 47 Section 8: The Natural Step Framework and Forum for the Future 47 Section 9: Advisory Council on Business and the Environment (ACBE) 48 vii EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COMMU N I CATION S Appendix 3: Websites to watch Environmental management systems 53 Professional institutions and business representatives 53 European, UK Government advice 53 Advice for investors 54 NGOs 55 Appendix 4: References and bibliography viii 153 157 CON TEN TS List of figures Figure E1 : The rule of thumb guide to CR communication both internally and externally xxiii Figure 2.1 : Essential components of communication models Figure 2.2: The multi-perspective model of communication 10 Figure 2.3: Basic forms of communication 11 Figure 2.4: Seven principles of organizational communication 13 Figure 2.5: Culture in the workplace 14 Figure 2.6: Ten principles for competitive success 17 Figure 4.1 : Vision for a sustainable future 39 Figure 4.2: Consumers punish companies for CR bad practice 43 Figure 4.3: CEOs who think sustainability is vital to any company 47 Figure 5.1 : Reasons corporate responsibility communications fail 51 Figure 5.2: Ten rules for getting the external sustainability message across 52 Figure 5.3: Electronic CR or environment report checklist 53 Figure 6.1 : Nine key internal messages to communicate regarding the organization’s CR programme 58 Figure 6.2: Communicate imaginative messages: ten quick tips which go beyond the norm in environmental communications 59 Figure 6.3: Key features of high performing internal stakeholder engagement 59 Figure 6.4: Senior managers’ internal communication – what to avoid 61 Figure 6.5: Where internal communication tends to sit in organizations 62 Figure 6.6: Example of internal communication formats and tools 64 ix EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COM MU N I CATION S Example Armed security Child labour Access to capital Climate change Knowledge economy Forced labour Land rights Labour rights Emissions trading scheme Enhanced capital allowances Ground contamination Sustainability issues Transport Biotechnology Need tax advice Storm damage to property Insurance premiums GM Conflict zones Waste Government tools – grants, assistance, demands for reporting Employees seek ‘responsible’ employers Food security Health and safety Legal challenges to define and protect human rights Customers favour ‘responsible’ companies, ‘fair trade’/ eco-friendly products Reactions of society Investors favour ‘good practice’ Changes to asset value Companies held accountable for supply chain, and product ‘life-cycle’ Polluter pays principle Government have mandate for new eco-taxes, legislation, sign-up to international conventions New hurdle to accessing capital New insurance products Impact on business (dependent on the nature of the business) Threat to future supplies Animal rights Soil degradation Higher costs Need to manage energy/ transport Facilitation payments Human rights Air pollution Food contamination Climate change Levy CLI MATE CHANGE Water pollution Biodiversity Influence on recruitment/ retention New products and services Need to integrate issues into value chain, e.g strategy and planning, communication purchasing Altered tax and legal structures New ways to compete Figure A2.6: The complex interrelationship between sustainability issues and societal reaction creates pressures on the operating environment for organizations, leading to increase in both direct and indirect costs (Source: Internalizing sustainability into business practices – Realizing the value, enhancing business success , ACBE 2003) 50 APPEN DIX 2: REPORTIN G FRAMEWORKS AN D MON ITORIN G TOOLS IN CH APTER ACBE go on to point out: ‘Having recognized the potential impact of sustainability on business, it is therefore imperative to be as efficient as possible in integrating it into core business processes’ ACBE produced an illustration to describe how sustainability gets translated into threats and opportunities for businesses, shown in Figure A2.6 Following the arrow in the left hand margin of the figure illustrates how these complex interrelated issues become part ofsocietal thinking, and then in turn affect the context and operating environment of businesses ACBE provided a research report on sustainability reporting to the UK government in October 2002, and in it made various recommendations including the need for business schools to consider environmental, social and ethical issues and their impact on corporate performance 51 Appendix 3: Websites to watch Environmental management systems British Standards Institution: www bsi- global com European Eco Management and Audit Scheme: www emas org uk International Network for Environmental Management: www inem org Professional institutions and business representatives The Environmental Industries Commission: www eic- uk co uk Confederation of British Industry: www cbi org Chemical Industries Responsible Care programme: www cia org uk Coalition of investors, business and public interest bodies: www ceres org Construction Industry Research and Information Association: www ciria org The World Business Council for Sustainable D evelopment: www wbcsd org CSR Europe membership organization for reporting guidance: www csreurope org Proj ect Sigma business obj ective review system: www proj ectsigma com European, UK Government advice Gateway to information on European policy and current debate: www europa eu int/ index_en htm 53 EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COMMU N I CATION S UK Government Sustainable Development Strategy: www.sustainable-development.gov.uk United Nations Economic Commission for Europe: www.unece.org Department for Education and Skills: www.dfes.gov.uk Adult Learning Inspectorate: www.ali.gov.uk Department Environment Food and Rural Affairs Reporting guidelines: www.defra.gov.uk/ environment/business/envrp Environment Agency England and Wales: www.environment-agency.gov.uk Environment Agency Scotland: www.sepa.org.uk Environment and Heritage Service Northern Ireland: www.ehsni.gov.uk UK Government Gateway to Corporate Social Responsibility: www.csr.gov.uk Department ofTrade and Industry Sustainability Guidance: www.dti.gov.uk/sustainability Advisory Committee on Business and the Environment (ACBE): www.defra.gov.uk/ environment/acbe The UK National Atmospheric Emissions Inventory: www.naei.org.uk Advice for investors Register of downloadable CR reports: www.corporateregister.com The Ethical Investment Research Service: www.eiris.org Dow Jones Sustainability Indexes: www.sustainability-indexes.com Corporate Critic database of CR information: www.corporatecritic.org CR information and news: CSRWire.com CR Information and news: Greenbiz.com 54 APPEN DIX 3: WEBSI TES TO WATCH NGOs The Global Reporting Initiative: www.globalreporting.org Forum for the Future: www.forumforthefuture.org.uk The Natural Step: www.naturalstep.org Business in the Community and Business in the Environment: www.bitc.org.uk Institute of Social and Ethical Accountability: www.accountability.org.uk The Environment Council: www.the-environment-council.org Corporate Responsibility Coalition (CORE) made up of Trade Unions and key NGOs: www.foe.co.uk/campaigns/corporates/core Trade Union Sustainable Development Advisory Committee (TUSDAC): www.sustainableworkplace.co.uk Sustainable Supply Chain Forum: www.sscf.info Scottish and Northern Ireland Forum for Environmental Research: www.sniffer.org.uk World Resources Institute:www.wri.org The Accounting Standards board: www.frc.org.uk/asb 55 Appendix 4: References and bibliography ACCA, corporateregister.com Towards Transparency – Progress on Global Sustainability Reporting 2004 London: Certified Accountants Educational Trust; 2004 Available from: www.corporateregister.com Accounting Standards Board OFR RSI Reporting Standards Operating and Financial Review and Accompanying Guidance London: ASB Ltd; 2005 Adult Learning Inspectorate E-Learning: Fulfilling its Potential in the Adult Learning Sector London: ALI; 2005 Advisory Committee on Business and the Environment Value, Growth, Success – How Sustainable is Your Business – A Briefing Note for Directors London: ACBE; 2000 Advisory Committee on Business and the Environmen Realising The Value, Enhancing Business Success London: ACBE; 2003 Advisory Committee on Business and the Environment Internalising Sustainability Working Group Sustainability Reporting – a status Report and Recommendations for Future Action London: ACBE; 2002 Ainley P, Bailey B The Business of Learning London: Cassell; 997 Beardwell I, Holden L Human Resource Management – A Contemporary Perspective London: Pitman Publishing; 998 Berrisford S Using Appreciative Inquiry to drive change at the BBC (part ) Strategic Communication Management 2005 April/May;9(5):22–26 Blewitt J Good practice in sustainable development education London: Learning & Skills Development Agency; 2002 British Standards Institution BS EN ISO 4031 – Environmental Performance Evaluation – Use of EPI’s London: BSI; 2000 57 EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COMMU N I CATION S British Standards Institution BS EN ISO1 4001 – Environmental Management System London: BSI; 2004 Business in the Community A Directors Guide to Corporate Responsibility Reporting London: BIC; 2005 Business in the Community Environment Index London: BIC; 2004 Business in the Environment Winning With Integrity London: BIE; 2000 Business in the Environment Investing in the Future – City Attitudes to Environmental and Social Issues London: BIC; 2003 Chambers R Participatory Workshops – A Source Book of21 Sets of Ideas and Activities London: Earthscan; 2004 Chartered Institute ofWater and Environment Management Dropping the Social Water and Environment Magazine 2005 Oct;1 0(9):25 Coffield F (ed) Learning at Work Bristol: The Policy Press; 998 Collins J Good to great – Why Some Companies Make the Leap and Others Don’t London: Random House Business Books; 2001 Corboy M, O’Corrbui D The Seven Deadly Sins of Strategy Management Accounting 999 Nov;1 0:1 –5 Cowe R Consumed with Innocence Green Futures 2004 Mar/Apr;45:51 CSR Europe CSR Facts and Figures [Online] 2006 Available from: www.csreurope.org/ aboutus/printpage/CSRfactsandfigures_page397.aspx Darnton A The Impact 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DTI; 2003 Available from: www.societyandbusiness.gov.uk/pdf/e2businesscompetitiveness.pdf Doppelt B Leading Change Toward Sustainability – A Change Management Guide for Business and Civil Society Sheffield: Greenleaf Publishing; 2003 Dowell G, Hart S, Yeung B Do Corporate Global Environmental Standards Create or Destroy Market Value? 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The ENDS Report 2005 May;364:29–32 ENDS Report Lack of Trust in Companies Persists The ENDS Report 2005 Jun;365:6 ENDS Report Moving on from Ticking Boxes in Supply Chain Management The ENDS Report 2005 Jul;366:25–7 ENDS Report Cement Sector Report Fails to Set Improvement Targets The ENDS Report 2005 Aug;367:4 59 EN VIRON MEN TAL AN D CORPORATE RESPON SI BILITY COMMU N I CATION S ENDS Report Agency Names Listed Parent Companies of Worst Polluting Firms The ENDS Report 2005 Aug;367:5 ENDS Report Behavioural Change Needed to Cut Transport Emissions The ENDS Report 2006 Feb;373:20–1 Environment Agency Corporate Environmental Governance – A Study into the Influence of Environmental Governance and Financial Performance Bristol: EA; 2004 Available from: www.environment-agency.co.uk Environment Agency A better place? State of the Environment 2005 Bristol: EA; 2005 Available from: www.environment-agency.co.uk Forum for the Future Special Briefing – The Sustainable Development Strategy Green Futures 2005 May/June;52 Gardner H Frames of Mind – The Theory of Multiple Intelligences New York: Basic Books; 993 de Geus A The Living Company – Growth, learning and longevity in business London: Nicholas Brealey Publishing; 999 Gibbs G Learning by Doing – A Guide to Teaching and Learning Methods London: Further Education Unit; 988 Global Reporting Initiative Sustainability Reporting Guidelines Boston (MA): GRI; 2002 Available from: www.globalreporting.org Grant R Contemporary Strategy Analysis 3rd ed Oxford: Blackwell Publishers Ltd; 998 Harris J The Learning Paradox London: Capstone Publishing Ltd; 2002 Harrison C, Davies G ESRC Global Environmental Change Programme: Lifestyles and the environment London: UCL; 998 Available from: www.sussex.ac.uk/Units/gec/ pubs/reps/dslifest.htm Hawksley R, Owen J Going the Distance – Are There Common Factors in High Performance Distance Learning? 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