The role of local level reporting in environmental decision-making

1. The role of local level reporting in environmental decision-making State- EPA Innovation Symposium January 24, 2006 Beth Ginsberg, Ceres www.facilityreporting.org

2. Topics • Ceres and the Facility Reporting Project (FRP) • Overview of FRP Sustainability Reporting Guidance • Facility Reporting Pilot Test • Partnerships with Government Agencies

3. What is Ceres? • U.S. coalitionof influential environmental NGOs, labor, and investors (85 organizations) • A network of more than 70 corporations that have endorsed the Ceres Principles • The oldest (1989) and most trusted environmental code of conduct in U.S. • The convenor, with UNEP, of the Global Reporting Initiative (GRI) www.ceres.org

4. American Airlines Aveda Bank of America Baxter International Ben & Jerry’s Homemade Coca-Cola Consolidated Edison Ford Motor Company Selected Ceres Companies • General Motors • Interface • ITT Industries • Nike • Northeast Utilities • Saunders Hotel Group • Sunoco • YSI, Inc.

5. AFL-CIO Citizens Funds Connecticut State Treasurer’s Office Domini Social Investments Environmental Defense Friends of the Earth Interfaith Center on Corporate Responsibility Ceres Coalition(selected members) • ISIS Asset Management • New York City Employee Retirement System • Sierra Club • Social Investment Forum • SustainAbility • Trillium Asset Management • Walden Asset Management • World Wildlife Fund U.S.

6. Ceres provides companies • Stakeholder feedback on environmental & sustainability reporting • Dialogues with key stakeholders on leading-edge sustainability issues • Recognition for leadership (Reporting Awards, Other communications) • Annual Conference –Education/ networking

7. Why standardize reporting? Companies receive diverse information requests Stakeholders receive incomplete information A generally-accepted reporting framework developed through a multi-stakeholder process Source: GRI

8. Global Reporting Initiative • a multi-stakeholder process and independent institution • Sustainability Reporting Guidelines for voluntary reporting on the economic, environmental, and social dimensions of activities, products • 700+ companies reporting worldwide • GRI “G3” guidelines just released- refined indicators, reporting process and more tools, electronic report format

9. What is the FRP? A multi-stakeholder initiative to develop a generally-accepted, consistent, comparable and credible sustainabilityreporting framework. FRP supports: 1. Public reporting and public trust 2. Performance-focused regulatory & voluntary approaches, including: • Performance Track programs • Performance covenants • Environmental management systems 3. Facility awareness of external effects 4. Compatibility with Global Reporting Initiative (GRI)

10. How FRP Came About- Growing Sense of Need in Many Places • Discussions at Global Reporting Initiative (GRI) meetings about need for facility-level metrics • Multi State Working Group indicated need for credible and comparable facility-level performance metrics linked to EMS • Performance Track programs (federal and state) seeing need • Tellus and Ceres pursue funding

11. Why Report at the Facility Level? • Current public information on facility performance is fragmented, out of context • Need integration of data and “story” • Workers, communities, regulators, citizens seek accountability • Opportunity for more comprehensive reporting and community engagement • Opportunity for learning, performance and productivity gains • Interest in corporate benchmarking and best practices

12. FRP Guidance designed to be: • Voluntary • Initially US-focused • Compatible with GRI • Useful to public, private sector & govt. • Legitimized by multi-stakeholder formulation and feedback • Informed by best current knowledge and practice • A dynamic product that improves and evolves with experience

13. 6 key parts of the FRP Reporting Guidance • Reporting principles • How to prepare a report • Facility overview • Economic indicators • Environmental indicators • Social indicators Contents of the Facility Report

14. Facility Overview • Facility Profile • Report Scope • Facility Organizational Context • Include stakeholders and how engaged

15. Environmental Indicators • Materials • Energy • Water • Biodiversity/Land Use • Emissions, effluents, and waste • Transport • Community Impacts of odor, noise, dust, traffic, lighting, vibration

16. Economic Indicators • Describe and quantify: • Customers • Suppliers • Employees • Payroll & Benefits • Providers of capital • Public sector • Subsidies, Taxes, Community donations • Infrastructure investments

17. Social Indicators • Labor practices and decent work • Human rights • Society • Product responsibility

18. FRP Pilot Test Activities • Suggested sustainability indicators for reporting environmental, social and economic performance; • FRP Guidance to assist in the reporting process; • Complementary tools to aid stakeholder engagement and identification of performance indicators

19. Current Participants: • Ford Motor Company • Timberland • Rockwell Collins • YSI, Inc. • New Hampshire Ball Bearings • Northside Foods • Harwood Products • Louisville & Jefferson MSD Now recruiting additional facilities!

20. FRP Pilot Test Timeline • Spring 2005: Launch at Ceres conference in Boston • Summer 2005: Pilot startup and group conference calls • Summer/ Fall 2005: Trainings at individual facilities, more company recruitment. 1st facility report published • Fall/ Winter 2006: Facilities collect data, engage stakeholders, draft reports; New state and government agency partnerships bring additional facilities on board • Spring/ Summer 2006: Reports begin to be published

21. Pilot Test Participation Benefits • Preparatory workshop, peer conference calls and support, website • On-site technical and reporting assistance • Assistance with stakeholder strategy, community and employee engagement • Access to best practices in facility accountability • Publicity for commitment and effort

22. Government partnerships • FRP can support performance-focused regulatory and voluntary programs • Can help government agencies looking to move corporate partners forward on sustainability • Current support from: • EPA National Center for Environmental Innovation (NCEI) • Washington Department of Ecology • Georgia P2AD program Looking for additional government partners!

23. EPA Supports FRP Pilot Test • EPA funds to support 7 Performance Track facilities piloting the environmental component of the FRP Guidance • Facilities will receive no-cost technical assistance to create comprehensive facility-level environmental reports • EPA will use lessons to explore relationship between environmental data collection, reporting, and performance improvement

24. Washington Ecology utilizes FRP metrics Fall 2005: Launch of partnership with State of Washington Department of Ecology • Ecology putting together benchmark analysis of pulp and paper mills’ environmental impacts • Exploring opportunities to incorporate facility-level reporting and stakeholder engagement in future public engagement efforts.

25. Georgia p2ad partnership Launch of partnership with State of Georgia P2AD program at MSWG meeting in September 2005 • P2AD will run regionally-focused pilot test working group • Possible integration of facility-level reporting and accompanying metrics into performance-based program based on external feedback

26. Questions & discussion • About pilot test opportunities? • About state and other government partnerships? Contact Beth Ginsberg at Ceres to join: 617-247-0700 x21 or ginsberg@ceres.org For more information about the Facility Reporting Project visit: www facilityreporting.org. Thank you!