FRP: a tool for measuring and improving facility sustainability performance

1. FRP: a tool for measuring and improving facility sustainability performance National Environmental Partnership Summit May 9, 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. 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 • 800+ companies reporting worldwide • GRI “G3” guidelines just released- refined indicators, reporting process and more tools, electronic report format

8. 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

9. What is the Facility Reporting Project (FRP)? The FRP is multi-stakeholder initiative to develop a generally-accepted, consistent, comparable and credible sustainabilityreporting framework. The FRP’s main product is a standardized guidance for companies and other organizations to report on the environmental and social performance of manufacturing and other facilities.

10. FRP Supports: • Public reporting and public trust • Performance-focused regulatory & voluntary approaches, including: • Performance Track programs • Environmental management systems • Facility awareness of external effects • Compatibility with Global Reporting Initiative

11. 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

12. 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

13. 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

14. 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

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

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

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

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

19. FRP Pilot Test Activities • Suggested sustainability indicatorsfor reporting environmental, social and economic performance; • Guidanceto assist in the reporting process; • Complementary tools to aid stakeholder engagement and identification of performance indicators • Online resources for case studies and examples of data presentation

20. Current FRP Participants EPA working group • La-Z-Boy Utah • National Renewable Energy Laboratory • Infineon Technologies • Lockheed Martin • Louisiana Pacific • Delta Faucet Initial working group • Ford Motor Company • Timberland • Rockwell Collins • YSI, Inc. • New Hampshire Ball Bearings • Northside Foods • Harwood Products • Louisville & Jefferson MSD

21. 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

22. 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

23. 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 agency partners!

24. 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

25. 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.

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

27. 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!