Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Safety as a Springboard to Sustainability International Rail Safety Conference: Denver, Colorado 5th to 10th October 2008 James Catmur Arthur D. Little Limited 300 Science Park Cambridge United Kingdom Telephone +44 (0)870 336 6700 Fax + 44 (0)870 336 6701 www.adlittle.com Safety as a Springboard to Sustainability Introduction Safety is fundamental to the operations of public transport, poor safety performance can threaten the existence of a firm Background Safety has been a long-standing fact of business for most firms The way that company chooses to act forms part of its own responsibility as a corporation Sustainability is much higher up everyone’s agenda Problem There is an urgent need to respond However, many companies are ill-equipped to tackle this area Answer A robust safety culture within a firm can be an excellent springboard to wider sustainability Safety as a Springboard to Sustainability.ppt 2 Safety as a Springboard to Sustainability Safety as a starting point Safety is part of the license to operate As such it is already well managed Safety has benefits for the bottom line and longevity of the firm – Reduced Costs – improved safety means services run to time reducing potential fines – Increased Opportunities – a good safety record can be the difference between success and failure in competitive tenders Safety as a Springboard to Sustainability.ppt 3 Safety as a Springboard to Sustainability Past focus on safety is being mirrored by the new focus on climate change The past focus on Safety… The Clapham accident – A turning point for UK rail safety The Ladbroke Grove accident – Significant media attention – Increase in stakeholder interest – More interventionist approach by the safety regulator Significant activity to address concerns Safety high up the agenda …is now mirrored by Sustainability Intergovernmental Panel – Scientific evidence of mankind’s contribution to climate change The Stern Review – Economic assessment – Climate change shown to have an impact on the global economy Activity to address concerns Sustainability higher up the agenda Safety as a Springboard to Sustainability.ppt 4 Safety as a Springboard to Sustainability Increasing importance of climate change brings with it pressure on other issues It is not enough to simply manage climate change and CO2 Corporations are in the Spotlight Leaders have Emerged Leadership Requires a Holistic Approach Individual corporations are targeted as emitters, for example: – BAA/Heathrow airport are criticised over expansion plans – Drax, regularly attacked by pressure groups Virgin recently trialled an aircraft on running on biofuel UK retailer Marks and Spencer have adopted “Plan A” The spotlight on climate change has elevated attention on other sustainability issues, for example human rights, supply chain working conditions, governance, corruption and benefit to society Safety as a Springboard to Sustainability.ppt 5 Safety as a Springboard to Sustainability The drivers are growing, especially relating to risks and opportunities associated with climate change Market Drivers 1. Investor expectations The influence of SRI funds is filtering into mainstream investment decisions 2. Tendering requirements Companies could enhance position through environmental performance 3. Regulation Could use best practice to help shape regulation 4. Resources Rising resource costs a threat to transport companies but could build client base 5. Competition Competition from efficient vehicles could undermine the inherent advantage of mass transit 6. Changing attitudes Integration of sustainability into decision making places pressure on poorly performing companies Safety as a Springboard to Sustainability.ppt 6 Safety as a Springboard to Sustainability The difficulty is understanding which issues are relevant and where to draw the line Navigating corporate social responsibility isn’t easy Leadership ethics Probity Transparency Responsibility CSR Disclosure Philanthropy Sustainable innovation CSR Reputation management Environmental stewardship Business principles Sustainabilitydriven-innovation Responsible marketing Non-financial risks Engagement Enhanced analytics Accountability Corporate citizenship Governance Corporate social opportunity Social products Competitive integration Community investment Good business ESG risks Safety as a Springboard to Sustainability.ppt 7 Safety as a Springboard to Sustainability Assess how social and environmental issues are managed across a business Governance Vision/mission Board of Directors Business integration of sustainability Profitability and growth Environmental impact Reputation Resource utilisation Organisation and culture Strategic management Business principles R&D Performance measurement & management Stakeholder engagement Environmental stewardship Products and services Facilities and operations Climate Change and carbon Social performance Workplace Treatment of employees Human rights Community Benefit to society Markets Partners and alliances Safety as a Springboard to Sustainability.ppt 8 Safety as a Springboard to Sustainability Review company’s positioning in the ‘zone of acceptability’, and against peers and investor expectations Sustainable Performance Leading edge Scores 5 on the ADL Sustainable Performance Template Sustainable performance Top-quartile Prevailing Performance is tomorrow’s leading practice 5 3 Leading Edge Zone of acceptability Scores 3 on the ADL Sustainable Performance Template Performance is leading edge for the industry 1 Prevailing Trailing edge Past Present Timeline Future Scores 1 on the ADL Sustainable Performance Template Performance is consistent with industry Safety as a Springboard to Sustainability.ppt 9 1Based Governance Company performance Integration of Sustainability Zone of competitor performance1 Environmental Stewardship Safety as a Springboard to Sustainability.ppt Benefit to Society Community Human Rights Treatment of Employees Workplace Climate Change and Carbon Facilities and Operations Resource Utilisation Environmental Impact Partners and Alliances Markets Products and Services Research and Development Strategic Management Reputation Management Profitability and Growth Stakeholder Engagement Performance Measurement Business Principles Organisation and Culture Board of Directors Vision/Mission Score Safety as a Springboard to Sustainability Results were benchmarked to highlight the strengths, weaknesses, opportunities and threats 5 4 3 2 1 - Social Performance Future Stakeholder Expectations on four benchmark companies examined for this project 10 Safety as a Springboard to Sustainability To address the key drivers of sustainability, three different options are presented 1: Risk Management 2: Stakeholder Responsive 3: Leading Edge Maintain present activities, including biofuel and hybrid trials, ecodriving initiatives and technology upgrades at depots Communication is enhanced Governance issues such as determining and publicising policies and measuring performance are addressed Overhauls approach to those areas where it is deemed furthest from future stakeholder expectations Seeks to become identified with sustainability in its business but maintains a cautious approach to rolling out new technologies, etc Leads and shapes the direction of sustainability in the transport sector, working with regulators to influence new regulation Seeks out new avenues for revenue from intelligent transport Maintains a leadership position in resource management Safety as a Springboard to Sustainability.ppt 11 Business As Usual Governance Leading Edge Integration of Sustainability Environmental Stewardship Stakeholder Responsive Safety as a Springboard to Sustainability.ppt Benefit to Society Community Human Rights Treatment of Employees Workplace Climate Change and Carbon Facilities and Operations Resource Utilisation Environmental Impact Partners and Alliances Markets Products and Services Research and Development Strategic Management Reputation Management Profitability and Growth Stakeholder Engagement Performance Measurement Business Principles Organisation and Culture Board of Directors Vision/Mission Score Safety as a Springboard to Sustainability The three options, with ‘leading edge’ matching both peer performance and investor expectations 5 4 3 2 1 - Social Performance Risk Management 12 Safety as a Springboard to Sustainability Companies who have learned to manage safety are better placed to manage sustainability The effort required to manage sustainability may seem high In reality it is no more of a change than that required to manage safety Companies who already manage safety: – Can see the tangible financial and operational value – Can also accept and understand the intangible benefits Are well placed to use the same experience to manage sustainability: – Seeing beyond the jargon and image of being “Sustainable” – Understand that it is about protecting and growing the firm An approach can be taken which builds upon strengths developed in safety and other key sustainability related areas Focus on issues which are material and which are demonstrated a through the business case – just like any other strategic business issue Safety as a Springboard to Sustainability.ppt 13