The Sustainability Code –
Training Concept
Overview of training courses on t
he
Sustainability Code.
The German Council for Sustainable
Development (RNE) – advisory body to
the Federal government
• Founded by Federal Chancellor Schröder in 2001
• Federal Chancellor Angela Merkel extends mandate and appoints 15 members
• RNE is a content-independent, multi-stakeholder body
Three main tasks:
• Advises the Federal government on sustain-
ability matters and the national sustainability
strategy
• Fosters the public debate on sustainability
Sustainability. Definition according to
the Brundtland Commission
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. […]
[…] a process of change in which the exploitation of resources, the direction of investments, […] technological development, and
institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations.
World Commission on Environment and Development, 1987
“
undertaking
Sustainability implies a holistic
greening of the economy...
environ-mental
social
economic
Value chainEmployees’ rights Incentive systems
Innovation and product management Stakeholder engagement Corporate citizenship Qualifications Equal opportunities Human rights Political influence
Conduct that complies with the law and policy Resource management
...and is expected by the stakeholders
of an undertaking.
Investors * Employees * Citizens * Customers * Suppliers
National & international policies * Civil society * Financial market
L oc al gove rnm ent s * Ra ti ng a ge nc ie s Cons um ers * M edi a * Re side nt s undertaking
environ-mental
social
economic
Many undertakings disclose
sustainability information
…
Sustainability report Information on sustainability in the annual reportWebsite on sustainability performance at the undertaking Image brochure on sustainability at the undertaking Integrated report Information on sustainability for individual target groups, such as investors, employees, customers
…
to answer stakeholders’ questions.
Undertaking
Politicians Media Customers Location Investors Rankings/ Ratings Employees NGOs SuppliersAnalysts look for non-financial parameters to evaluate undertakings.
Politicians check
need for regulation. Customers expect
information on product sustainability and responses to allegations.
NGOs require
information on specific matters such as environmental protection and working conditions.
Integrating sustainability poses a
complex challenge.
1. Reference sustainability in undertaking’s strategy
2. Determine the undertaking’s key topics in light of current and future challenges
3. Illustrate the sustainability programme, including specific goals, time schedule and status reports
4. Describe dialogue processes and how outcomes are put to use
Analysis, planning and integration of
sustainability within the undertaking
Evaluation
5. Deal with dilemma situations
Determine the ecological and social impact as well as the value contributed by the main
topics
Key performance indicators (KPIs):
derived from the key fields of action for measuring the
Integration into ratings, rankings, bond and financial markets; B2B and B2C communication, public procurement, export credit guarantees, etc.
Code logos (German/English); cooperation with market actors and international partners Added value for companies and
users, incl. lowering of
transaction costs, a centralised information platform and means of comparison
Market relevance acceptance
visibility
The Code makes corporate social
responsibility tangible.
Main goal of the Code: re-set the
frame-work conditions for economic success.
Creates comparative frameworks
to enable competitors to compare sustainability performance using standardised minimum requirements
Facilitates mainstreaming
through public access to sustainability information using the Code’s database
Promises efficiency on the market
and aims to lower transaction costs and achieve standardisation through capital market actors
Fosters environment for market-driven rewards by addressing new investor groups, promoting investment opportunities and channelling capital flows into sustainable business models
An initial look shows: the Code is
simple and easy to use.
GRI EFFAS DNK
Extent 362 pages 170 pages 56 pages
Structure • General Standard Disclosures • Disclosures on Management Approach • Economic • Environmental • Social • Environmental • Governance • Social • Longterm viability • Strategy • Process management • Environment • Society
Criteria 58 Standard Disclosures + 92 KPI
98 KPI 20 Criteria + 28 resp. 16
KPI
KPI Roughly 50 % quantitative,
50 % qualitative
Primarily quantitative Primarily qualitative
Additional required data
A lot (e.g. return, EVA, operating income, etc.)
A lot (e.g. return, EVA, operating income, etc.)
Little (e.g. GHG emissions, hours spent on training)
Five benefits for users
1.
Makes reporting easier and comparable.
2.
Meets the EU’s reporting obligation and is compatible with
international standards.
3.
Suited to small and medium-sized enterprises (SMEs).
4.
Also of benefit to civil society organisations.
The standard: four areas with twenty
criteria
Strategy Criteria 1-4 Process Management Criteria 5-10 Environment Criteria 11-13 Society Criteria 14-20• Strategic analysis and
action
• Materiality
• Objectives
• Depth of the value
chain • Employment rights • Equal opportunities • Qualifications • Human rights • Corporate citizenship • Political influence
• Conduct that complies
with the law and policy
• Responsibility
• Rules and processes
• Control • Incentive schemes • Stakeholder engagement • Innovation and product management • Usage of natural resources • Resource management • Climate-relevant emissions
The Code criteria are backed up by GRI
and/or EFFAS indicators
14. Employees’ rights 15. Equal opportunities 16. Qualification
S
oc
ie
ty
Key data on scope of validity and
application
• The Code can be readily applied to all sizes and organisational and legal forms
• Relates to the same area of consolidation, such as the financial report
• Implementable on a “comply or explain” basis with greater binding character
• Supplemented by performance indicators relating to environmental, social and
governance issues (KPIs for ESG) of GRI/ EFFAS/ DVFA
• Refers to: OECD-Guidelines for multinational companies, UN Global Compact,
ISO 26000
• Room for manoeuvre due to branch-specific differentiation, explain boxes,
The 2014/95/EU Directive has laid the foundation for the compulsory reporting of non-financial information and has thus amended the Accounting Directive.
• Approach: binding reporting on CSR/sustainability in accordance with the comply-or-explain approach
• Target group: companies of public interest with over 500 employees.
• Topics: environmental, social and employee-related matters, human rights, diversity as well as anti-corruption
• Interfaces: recognition of national and international standards (e.g. the Code)
Impetus from Brussels: EU Commission
adopts reporting obligation.
01.01.2017 at the latest: reporting obligation
Timeframe for EU COM 2014-2018
EU directive adopted by EU Parliament
2014 2015 2016 2017 2018
EU directive adopted by Council of Ministers Published in Official Journal of the EU
EU directive comes into force
EU COM Report to EU Parliament/ Council: status of implementation of directive
Directive to be transposed into national law by EU member states: method guidelines
15.04.2014 29.09.2014 15.11.2014 06.12.2014 Up to 06.12.2016 By 06.12.2018
• Declarations of conformity with the Sustainability Code can mark the inception of strategic sustainability communications. In this case, third-party assurance is not necessary.
• To raise its effectiveness on the market, the credibility of the information can
be verified by an independent, third-party review.
• Liability for the quality of information provided rests with the undertakings.
Council recommendations on specific
application.
Why the Code is suited to first-time
users
1.
The Code is simple, flexible and easy to handle.
2.
Focuses on the material aspects; reduces complexity.
3.
Facilitates the implementation of sustainability in undertakings
by using a recognised standard.
4.
Meets the requirements of current and upcoming regulations
as well as those that business partners demand of their suppliers.
5.
National training partners combined with extensive assistance in
Why experienced reporters should use
the Code
1.
The Code is supported by Germany’s government and parliament.
2.
Ties in with GRI and Global Compact.
3.
Provides a high degree of flexibility for corporate-specific sustainability
programmes.
4.
Makes sustainability performances comparable and enables
benchmarking with competitors.
The Code is used by undertakings of
all
sizes and
in
all sectors
.
Abfallbetriebswirtschaft München * Allianz SE * AUDI AG * BASF SE * Bayer AG * BESONDERE ORTE Umweltforum Berlin GmbH * Berlin Hyp AG * Berliner Stadtreinigung AöR * Berliner Wasserbetrieben * BESONDERE ORTE Umweltforum Berlin GmbH * Bilfinger SE * BMW AG * Bundesdruckerei Unternehmensgruppe * Coca-Cola GmbH und Coca-Cola Erfrischungs-getränke AG * Commerzbank AG * Daimler AG * DekaBank * Deutsche Bahn AG * Deutsche Bank AG * Deutsche Börse AG * Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH * Deutsche Telekom AG * druckprozess GmbH & Co. KG * DZ BANK AG Deutsche Zentral-Genossenschaftsbank * E.ON SE * elobau GmbH & Co. KG * EnBW AG * Entega GmbH & Co. KG * Evangelisches Siedlungswerk in Bayern Bau- und Siedlungsgesellschaft mbH * Evonik Industries AG * Fenix Outdoor AB publ. * Flughafen München GmbH * Fraport AG * Fraunhofer UMSICHT * FROSTA AG * GESOBAU AG * Hamburger Hafen und Logistik AG * Hassia Mineralquellen * HEAG Holding AG * HEAG Südhessische Energie AG (HSE) * Henkel KgaA * HOCHTIEF AG * HOWOGE Wohnbaugesellschaft mbH * HypoVereinsbank * Igefa Handelsgesellschaft mbH & Co. KG * Interseroh * Johnson+Johnson * KESSEL AG * Kreissparkasse Heinsberg * Kreiswohnbau Hildesheim GmbH * Landesbank Baden-Württemberg AöR * Lebensbaum / Ulrich Walter GmbH * Linde AG * MAN SE * Märkisches Landbrot GmbH * memo AG * Merck KGaA * Miele & Cie. KG + Nölken Hygiene Products GmbH * NORD/LB – Norddeutsche Landesbank * NORDAKADEMIE * ÖPP Deutschland AG * Otto GmbH & Co KG * Piepenbrock Unternehmensgruppe GmbH + Co. KG * Porsche AG * Puma SE * REWE Group (Zentral-AG und Zentralfinanz eG) * RWE AG * SAGA GWG * Siemens AG * SolarWorld AG * Spar- und Bauverein eG * Sparkasse Hannover * Stadtreinigung Hamburg AöR * Stadtwerke Göttingen AG * Steinbeis Papier GmbH * Studiosus Reisen München GmbH * Tchibo GmbH * Triodos Bank N.V. Deutschland * TÜV Rheinland AG * Unilever Deutschland Holding GmbH * Union Investment * UPM Kymmene * VAUDE Sport GmbH & Co. KG * Vivawest Wohnen GmbH * Volkswagen AG * Wankendorfer Baugenossenschaft GmbH * Wüstenrot & Württembergische AG * WZR ceramic solutions GmbH
The initial situation: more
undertakings want to apply the Code
Typical motivating factors for undertakings include:
• Be prepared: The EU estimates that approx. 6,000 undertakings will be immediately affected and very many more indirectly impacted (via the supply chain) by the EU’s obligation to report on non-financial information.
• Steer sustainable business strategies: The Code sets out a clear and manageable framework and provides a structuring tool for sustainable business strategies.
• Create transparency: Through the Code, undertakings make their sustainability performances visible, with a higher degree of commitment and more readily comparable.
Code training partners can accompany
this process using their expertise.
Morning: Informational event on the Code
• Brief presentation of RNE, the Code and the
EU reporting obligation
• Presentation of the Code training partner concept and the toolbox
Afternoon: Code training
• How to use the database
• Practical examples
• Introduction to the teaching aids
Interested trainers/consultants can
...and will then receive the toolbox and
services free of charge.
Services provided to Code partners
• Code templates and toolbox
• Code training partner logo
• Inclusion in the Code events calendar
• Presence on the Code website
• Contact established to
undertakings, associations and other intermediary organisations
• Undertakings procured to
provide best-practice examples (Code mentors)
• Sending of news relating to the Code and political developments
Requirements for Code training partners
Select group of training course providers with expertise in
• CSR/sustainability
• Training courses in organisations
• Proficient in sustainability reporting
After attending a Code train-the-trainer-course,
training partners can offer their own courses based on the content of the Code toolbox, or hold training courses procured by intermediaries.
The toolbox contains presentations,
information and teaching aids.
General information on the Code
WHAT IS THE CODE AND FOR WHOM IS IT INTENDED?
The Sustainability Code outlines the minimum requirements for reporting on sustainability aspects. It therefore provides a framework for reporting non-financial performance and can be used by all enterprises and organizations regardless of their size or legal structure. The Sustainability Code is used in particular by financial analysts and in-vestors to evaluate the sustainability performance of companies.
»The Sustainability Code enables companies to demonstrate their sustainability commitment to investors and consumers in a transparent, comparable and tangible way. I believe this to be a persuasive concept, because the Code is also raising great interest outside of Germany.«
Chancellor Dr. Angela Merkel speaking at the annual RNE conference on 02.06.2014
WHERE CAN I FIND GUIDANCE AND HELP WITH THE CODE?
For the latest information and guidance, such as the guideline for small and medium-sized enterprises, please go to our website: www.sustainabilitycode.org
Please direct your questions to:
The Sustainability Code is supervised by the office of the German Council for Sustainable Development (RNE). RNE is thus affirming its aim of advancing the concept of sustainability in society and business and making the sustainability performance of companies transparent and comparable. In doing so, RNE works on behalf of the German government. German Council for Sustainable Development (RNE) Office c/o GIZ Potsdamer Platz 10 D-10785 Berlin www.nachhaltigkeitsrat.de/en
GREENING THE ECONOMY WITH THE SUSTAINABILITY CODE
T h e S u s t a i n a b i l i t y C o d e
B e n c h m a r k i n g s u s t a i n a b l e e c o n o m y
2nd completely revised edition 2015
Supporting teaching aids
The Code Team procures the
participants...
Code training
inquire about training
offer training of their own accord and on inquiry
Agreement on conditions forward inquiries,
procure best-practice
examples, set up corporate
profiles for declarations of conformity, add trainings to the Code calendar
Code Team
Code partners
Undertakings,
...the training partners then run the
courses by themselves.
• Handover of toolbox
• Handover of the Code
partner logo
• Ongoing support in the
planning and running of events
• Shipment of
informational materials Train-the-trainer courses
Code team trains Code training
partners
• Events are noted in the
events calendar (Code website) and the Code newsletter
• Running of events procured
by the Code team, or partners run their own training courses using the toolbox contents
Cooperations
offer
2. Informational events / training courses procured by intermediaries • Procurement of events between chambers of commerce/associations and 1. Advice/training to undertakings • One-on-one consulting • Running of seminars or training courses Code events
The modular training concept enables
formats for specific target groups.
Basic presentation for a
1.5-hour information event, incl.
a practical example by a Code mentor
Basic presentation on
incorporating the Code into existing CSR training
(e.g. sustainability reports)
Modular presentation for a
1-day workshop
CSR training “Sustainability reports”
• EU reporting obligation
• Presentation of all standards
• ... • ... The Code • Introduction • Benefits • Application • Practical example 1 h 0.5 h The Code • Introduction • Benefits Practical example • (Code mentor) • Transition to application 1 h The Code • Introduction • Benefits • Application
1 h Application of the Code
Test/direct entry via test/live account
Presentation of the criteria and KPIs; presentation/ questions about data entry
Communicating the Code Break
A
0.5 h
Code mentors: practical examples
showing the Code’s successful use.
Munich
Deutsche Gesellschaft für Inter-nationale Zusammenarbeit (GIZ) Piepenbrock Unternehmensgruppe GmbH & Co. KG
SolarWorld AG
Nölken Hygiene Products GmbH Lebensbaum/ Ulrich Walter GmbH
HEAG Holding AG Fraunhofer UMSICHT Deutsche Börse AG Berlin Hanover Diepholz Osnabrück Oberhausen Bonn Windhagen Eschborn Darmstadt Frankfurt a. M. Leutkirch • Code users • Interest in approx. 30 min. presentation during regional Code event • Report on the sustainability process and own application of the Code Abfallwirtschaftsbetrieb München Flughafen München GmbH Coca-Cola GmbH und Coca-Cola Erfrischungs-getränke AG Commerzbank AG Sparkasse Hannover Märkisches Landbrot
Entega Privatkunden GmbH & Co. KG
MAN
HEAG Südhessische Energie AG
Spar- und Bauverein Dortmund eG
Dortmund AUDI AG Hamburg Hamburger Volksbank Stuttgart Essen Vivawest GmbH Würzburg memo AG Ingolstadt
What we offer interested trainers/
consultants.
What we offer
• Modular training concept for the Code
• Code toolbox: documents to prepare and run training courses
• Inclusion in the Code partner network
• Contact established to undertakings, associations and other
intermediary organisations
Contact:
Project Office the Sustainability Code E-mail: [email protected] www.sustainabilitycode.org
Should you be interested in a Code training course or
being added to the network of
Code training partners, please contact the Project
Office of the Sustainability Code.
This presentation has been commissioned by the German Council for Sustainable Development. The presentation is the property of the German Council for Sustainable Development and may be used by third parties free of charge. It can be forwarded to third parties under the proviso that the representations made in the presentation, including any deviations, are only disclosed to other recipients if they include the source and the Sustainability Code logo.
No warranties are given as to the factual accuracy and completeness of the information contained in this presentation.
Contact:
Project Office the Sustainability Code E-mail: [email protected] Telephone: +49 (0)30 700186 974
