Csr Vietnam Handout Ok

CSR Training Workshop for Industries

Corporate Social Responsibility Training Workshop for Industries – Cost cutting and performance improvement through CSR –

As part of the European Commission supported SME business development project on Empowering Asian Business Intermediaries through Knowledge-based Networking Focused on Sustainability Management (EMPASIA)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Learning objectives of the CSR training 1.

Becoming familiar with the concept of CSR

2.

Become familiar with systematic integration of CSR

3.

Create awareness on how CSR issues can create value for businesses

4.

Understanding the interrelation of CSR issues in organisations

Corporate Social Responsibility (CSR) – background and business context Systematic integration of CSR – process model and tools Getting started with CSR – Interactive Group Work

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries CSR – Just a trend or a substantial change in doing business?

What is it? What drives the development and what do we want? How can we do it? Are there some tools to help us?

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries CSR – is it new?

I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so that they are able to accomplish something collectively that they could not accomplish separately – they make a contribution to society, a phrase which sounds trite but is fundamental. Dave Packard, Co-founder of Hewlett Packard Company in 1939

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries What does CSR stand for? “Humanity has the ability to make development sustainable - to ensure that it meets the needs of the present without compromising the ability of future generations to meet their needs.” Sustainability Management

Way of managing all our resources and its impact in an environmentally friendly, socially responsible and economically wise way (The triple Bottom Line)

Corporate Social Responsibility

Approach to give a frame for businesses to express their commitment to society. Support to voluntarily integrate social and environmental issues into all business activities beyond regulations Internal perspective • health and safety at work • management of human resources • responsible use of resources • adaptation to change (innovation) •…

External perspective • social handling of community, customer and stakeholder relations • focus on human rights and global environmental protection European framework, Green Paper on corporate social responsibility Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

Social Responsibility – working draft 4.1 ISO 26.000 responsibility of an organization for the impacts of its decisions and activities (products, services and processes ) on society and the environment, through transparent and ethical behavior that: • contributes to sustainable development, health and the welfare of society; • takes into account the expectations of stakeholders; • is in compliance with applicable law and consistent with international norms of behavior; • is integrated throughout the organization and practiced in its relationships (an organization’s activities within its sphere of influence). www.sustain-asia.org/pg/bookmarks/Frank/read/337/iso-draft-26000

Dow Jones Sustainability Index definition of CSR “a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments” http://www.sustainability-index.com/

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Other CSR definitions - example CSR encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. In order for corporate social responsibility programs to work, government and the private sector must construct a new understanding of the balance of public and private responsibility and develop new governance and business models for creating social value.

Harvard CSR Initiative, 2004

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries CSR – Just a trend or a substantial change in doing business?

What is it? What drives the development and what do we want?

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries What drives the development, risks – opportunities – values?

The Future of CSR, How to Align Values for Profit, Canadian Manufacturers & Exporters, 2007, David Crawford Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Market forces that are driving the need for organizations to address CSR 1. Economic considerations 2. Ethical considerations 3. Innovation and learning 4. Employee motivation 5. Risk management or risk reduction 6. Access to capital or increased shareholder value 7. Reputation or brand 8. Market position or share 9. Strengthened supplier relationships 10. Cost savings

KPMG's International Survey of CSR Reporting (2005). This report surveyed more than 1,600 companies worldwide and documented the top ten motivators driving corporations to engage in CSR for competitive reasons. Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Company - CSR Driver Community pressure Attraction of new investors or customers Competitive pressure Philanthropy Information demand by stakeholders Differentiation opportunities Legal- or regulatory obligations Environmental concerns relating to products or service Social concerns relating to products or service Improving Business Performance

0%

10% 20% 30% 40% 50% 60% 70% 80%

Why is your company interested in applying CSR? EU project EMIT CSR, Malaysia Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Which areas are covered by CSR? – ISO 26.000, GRI

Guideline Social Responsibility – working draft 4.1 ISO 26.000

Reporting Framework for sustainability reporting, Global Reporting Initiative Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Which areas are covered by CSR? Consumer group Stiftung Warentest

Social Issues / Employees 1. Guiding principles and corporate policy 2. Management and measures 3. Implementation 4. Reporting

The Environment 1. Guiding principles and corporate policy 2. Management 3. Measures and implementation 4. Reporting

Social Issues / Production and Supplier 1. Guiding principles and corporate policy 2. Management and measures 3. Implementation 4. Reporting

Consumers and Society 1. Willingness to provide information 2. Community involvement

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Which areas are covered by CSR? - Consulting Firm OWW, Malaysia Data %

Score

Company structure and governance

3

A

Supplier standards

-

-

Financial stability and risk management

3

A

Investor relations

3

A

Workplace

Data % 3

Marketplace

Management and Governance

Stakeholder engagement

Score C

Transparency and reporting practice

3

A

Consumer relations

3

A

Planning processes

3

A

International Links

3

A

Performance measurement and monitoring

3

A

Domestic Sourcing

3

A

Codes of conduct and enforcement

-

-

Islamic Financing

3

A

-

-

Joint Ventures & Partnerships

-

-

84.4

A

Marketplace Score

83.9

A

Environment

Data

Score

Employee practice and engagement

-

-

Environmental policy

-

-

Health and safety management

-

-

Environmental management systems

-

-

Human capital development including: -

3

A

-

Corruption and bribery policies and enforcement Management and Governance Score Employment

Performance measurement and monitoring

-

Graduate Recruitment

3

Environmental reporting

-

-

Graduate Training

3

Environment Score

-

-

Data

Score

3

A

Graduate Sponsorship/Scholarship Programmes

3

Worker satisfaction monitoring

3

B

Community

Remuneration policies

-

-

Community and charity including:-

Knowledge management

-

-

Tolerance and diversity in the workplace Employment Score

Adopt-a-charity

3

-

-

Contributions in kind

3

64.3

C

Employee volunteering schemes

-

Adopt-a-school

-

Key subjects sponsorships

3

Contribution type and quantum

3

Accreditation Awards, acknowledgements

3

A

Accreditation to international standards

3

A

Human Rights policies

-

-

Membership/Signatory of international bodies

3

A

Rakyat Policies

3

A

100

A

Halal Accreditation

3

A

Media monitoring and reporting

3

A

81.3

A

Accreditation Score Workplace Score

74.0

B

Community Score

B

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Which areas are covered by CSR? – Enterprise Performance Indicator Systems energy

Input

e-power fuel

water materials

chemicals raw materials

Holistic view:

number

volume

semi products

Efficiency

OPI products

Output

EPI

waste waste water legal requirements

MPI

rejects scrap sludge household other waste water law air quality law

qualification & training safety maintenance

cost

Ecological Aspects (ISO 14000 indicators)

rate

number of offences

Social Aspects (SA8000 indicators)

number accidents complaints

number downtime costs number of incidents

Maintenance

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Which areas are covered by CSR? – Standards

•

Management Standards – Environmental Management • ISO 14000 Family (International Organization for Standardization) • ECO-Management and Audit Scheme EMAS (European Union) – Quality Management • ISO 9000 Family (International Organization for Standardization) • EFQM model for Business Excellence (European Foundation for Quality Management)

•

Workplace Standards – SA8000 (Social Accountability International) – ILO-OSH-2001 (International Labor Organization) – OHSAS 18001 (various worldwide Standardization Bodies)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries •

Reporting Standards - GRI - www.globalreporting.org

•

Social Standards – ISO 26000 forthcoming 2008 (International Organization for Standardization) – AA1000 (AccountAbility) – TransFair – Fair Trade Labeling Organization – Business Social Compliance Initiative

•

Industrial Standards – Textile • Code of Labour practices for the apparel industry including sportswear • RUGMARK • Purewear • European Eco-Label • Green Cotton • LamuLamu • ÖkoTex Standard 100Plus Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Information and Networking – www.sustain-asia.org

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

CSR – making profit with a clear conscience!

Involves every aspect of an organization, like •

Governance

•

Environmental sustainability

•

Risk management

•

Workplace issues

•

Cultural norms

• Local laws and customs ….

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries CSR – Just a trend or a substantial change in doing business?

What is it? What drives the development and what do we want? How can we do it?

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

Performance Controlling

Reporting

Assessment

Continuous Improvement

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

Strategy Development

Internally directed analysis of own company (e.g. SWOT) Externally directed analysis of - Industry - Markets - Environment

Formulation of the company’s core reason to be. Definition of corporate values Definition of corporate culture

Formulation of mid- and long-term plan of action to - fulfill the company’s mission, - while taking account the company’s capabilities (internal analysis) and it’s competitive environment (external analysis)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Implementation Planning

Tool Balanced Scorecard Approach

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

Company Medium-Term Strategy Increase the company profits through expansion in Asia and differentiation using sustainability as differentiating factor . Financial Perspective

Move products up market to increase profit margin for own branded products.

Customer Perspective Be recognized as sustainable company

Internal Process Perspective Green production process

Increase business transparency

Provide (own-branded) products tailored to customers’ needs and tastes

Develop and introduce right products to the right markets

Increase flexibility of production

People an Knowledge Perspective Foster a company culture of sustainability

© Fraunhofer IFF Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk Magdeburg 2009

Ensure production staff can perform tasks adequately and environmentally responsibly

Move to knowledge based value creation

Improve business communication

Seite 24

Financial Perspective Goal Increase profit margin for ownbranded products

KPIs • Profit margin • Production costs • Selling price • Overhead costs

Target • +50 percent • -10 percent • +60 percent • -5 percent

Activity Align company processes to sustainability principles to differentiate products and create added value for customers

Seite 25 © Fraunhofer IFF Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk Magdeburg 2009

Goal Goal

Financial Perspective Customer Perspective KPIs Target KPIs Target

Increase profit • Profit margin Be recognized as • Positive media margin for own• Production costs a sustainable reports branded products • Selling price company • Overhead costs • Consumer survey score • Marketing budget Provide products tailored to customers’ needs

• Customer satisfaction • Loyalty ratio (rebuy rate)

• +50 percent • 6 reports in • -10 percent local, 3 in • +60 percent international • -5 percent media • +35 percent • +25 percent

• +50 percent • 50 percent

Activity Activity

Align company processes to Use PR instruments to sustainability principles to communicate company’s differentiate products and commitment to sustainability. create added value for Develop co-branding/co-selling customers strategy with sustainable products.

Engage customers to survey needs and identify trends, focus also on buying habits.

Seite 26 © Fraunhofer IFF Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk Magdeburg 2009

Financial Perspective Customer Perspective KPIs Target Process Perspective KPIs Target

Goal Goal Increase profit marginKPIs Goal as • Profit Be recognized • Positive media

Activity Activity • +50 percent Align company processes to Target Activity • 6 reports in Use PR instruments to

margin for own• Production costs • -10 percent sustainability principles to a sustainable reports local, 3 in communicate company’s Green production • Recycled materials • 40 percent Analyzeproducts production branded products • Selling price • +60 percent differentiate andprocess company international commitment to sustainability. processes as input a holistic perspective and • Overhead costs • -5 percent createfrom added value for media Develop co-branding/co-selling • Decrease or customers • Hazardous identify potential to green the • Consumer • +35 percent to 10 strategy with sustainable substitute materialssurvey production process, e.g. score • +25 percent products. percent through substitution, reduction • Marketing • Use 40 percent • Energy budget and avoidance . from RES consumption Provide products • Customer • +50 percent Engage customers to survey Flexibility of • Lead-time • -10 percent Improve order planning through tailored to satisfaction needs and identify trends, focus production • Set-up time • -15 percent effective customers involvement (re• 50• -20 percent customers’ also on buying habits. processesneeds • Loyalty • Timeratio to customer percent (design) buy rate) Training of staff, Optimization of internal and external logistic, optimize supplier management Seite 27 © Fraunhofer IFF Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk Magdeburg 2009

Financial Perspective Customer Perspective KPIs Target Activity Process Perspective KPIs Target Activity People and Perspective • Profit marginKPIs • +50Knowledge percent company processes Target Align Activityto

Goal Goal Increase profit Goal as • Positive media Be recognized • 6 reports in Use PR instruments to margin for own• Production costs • -10 percent sustainability principles to Goal KPIs Activity a sustainable reports local, in Target communicate company’s Green production • Recycled materials • 40 3 percent Analyze production process

branded products • Selling price • +60 percent differentiate products and company international commitment to sustainability. processes as input a holistic perspective and Improve • Training • 6 hours / month Provide production related • Overhead costs of staff• -5 percent createfrom added value for media Develop co-branding/co-selling • Decrease or / year identify potential the knowledge based • Hazardous • 2 courses training, set upto ofgreen knowledge customers • +35 with sustainable substitute to 10 strategy materialssurvey production process, e.g. Value •percent 30% increases value creation • Consumer management system, score • +25 percent percent through reduction of CIP impact products. addedsubstitution, products through new • Marketing budget • Use 40 percent • Energy and avoidance . • R&D costs • 25 % increase to designs from RES consumption production cost Provide products • Customer • +50 percent Engage customers to survey Flexibility ofof • Lead-time • -10 percent Improve order planning through Culture • Employee • 85 percent Anonymous employee survey to tailored to satisfaction needs and identify trends, focus production • Set-up time • -15 percent effective customers involvement sustainability satisfaction identify ratio (re• 50• -20 percent customers’ also on buyingproblems, habits. set up of processesneeds • Loyalty • Time to customer percent (design) Improvement by • 15 suggestions incentive schema, networking buy •rate) Training staff, employees per quarter events,ofcommunication Optimization of internalworking and • Recruitment of • +20 percent platform, improving external logistic, optimize Univ. Gradates applications atmosphere supplier management Seite 28 © Fraunhofer IFF Prof. Dr.-Ing. habil. Dr.-Ing. E.h. Michael Schenk Magdeburg 2009

CSR Training Workshop for Industries

Performance Controlling

Reporting

Assessment

Continuous Improvement

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Challenges and critical aspects for implementation & performance controlling ¾ Established management structures and processes ¾ Hierarchical power, prestige, career related interests of employees etc. ¾ Assumptions, thoughts and beliefs of employees regarding goals and activities ¾ Insecurity and rejection caused by transparency and quantitative controlling ¾ etc. ¾ Strong commitment from top management ¾ Creation of awareness and open mind-set of employees (internal acceptance) ¾ Proactive approach to tackle potential mental reservations of employees ¾ Establishing a discourse-oriented infrastructure (e.g. internal discussion on activities before implementation) ¾ Involvement of various functions and departments ¾ Consideration of micro-political issues (influence and hierarchical power) ¾ Integration into general management (avoid separation of management systems!) ¾ Regular revision according to performance and changes in corporate strategy ¾…

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Information flow and communication External Community

Government

Investors

Customer, Supplier

Etc.

Demands, Requirements

Performance, Reporting

Company Internal Owner Demands, Requirements

Management

Performance, Reporting

Employees

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Performance assessment / closed-loop controls

Company

Production Area

Information flow

Top Management

Area 1

Department 1

Department 2

Area 2

Department n

Department Closed Loop

Closed Loop

Area n

Material Flow

Closed Loop

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

“If You Don’t Measure it You Can’t Manage it….”

What gets measured gets managed? What gets evaluated gets managed? What gets systematic controlled will improve?

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Procedures, Responsibility and Competences Ways of decisions

Ways of communication

CEO Director Manager Master Forman Employee A

B

levels

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Interfaces Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Development of a CSR Performance Assessment Systems

Assessment Plan

Goal system for the company Activity specification Stakeholder engagement

Assessment Procedure

Defined procedure (reporting cycles, assessment meetings) Responsibilities / competences Standard key performance indicators Change management plan for improvements Communication plan Review procedure

Assessment Reports

Types Content Structure Reporting

Monitoring, benchmarking, audit / internal/external KPIs, benchmarks, goal achievement, improvement monitoring Specific definition, graphics, results Publication, frequency, work flow

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

What are the benefits? ¾ Creation of transparency ¾ Installing a systematic process of monitoring & reporting as well as evaluating & improving important business aspects in a continuous way ¾ Improving decision making through an holistic view ¾ Support and integration of different management systems (EMS, Quality, OHS etc.) ¾ Efficient data management (collection and use!) ¾ ... Consequences ¾ Cost and recource saving ¾ Improved management procedures ¾ Compliance and business enhancement ¾ Change of attitude towards learning organisations

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries CSR – Just a trend or a substantial change in doing business?

What is it? What drives the development and what do we want? How can we do it? Are there some tools to help us?

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries ICT for business management Internal communication Process monitoring with indicators Internal documentation Process / business assessment based on indicators External reports communication In-house gap analysis Benchmarking Representation and analysis of material flows Simulation of processes Definition of CSR orientated objectives Preparation of material and energy balances 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

EC project EMIT CSR, Malaysia Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Process and performance monitoring in a large number of companies is inadequate to needs! ? IT systems used to support controlling and management tasks and real benefit (or benefit from future use) Preparation of material and energy balances In-house gap analysis Representation and analysis of material flows Simulation of processes Process monitoring with indicator Process/business assessment based on indicator Internal documentation External documentation/communication recycling or waste exchange 35%

30%

25%

in use / food

20%

15%

in use / textile

10%

5%

0%

in use / general EC project Asia ITC FORCE, Thailand Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Indicator Management

Process Management

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

www.modiconsult.com

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Combining tools and services for industries

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Transition of SMEs and supply chain networks in Southeast Asia towards sustainable production processes through an active uptake of ICT solutions for sustainability management – ICT4SM Specific objectives: • To develop a portfolio of efficient ICT-based sustainability management tools and solutions tailored to the local conditions in Southeast Asia and needs of local SMEs across various industrial sectors • To stimulate and facilitate an uptake of ICT-based sustainability management methods and tools in significant number of regional SMEs and to improve their competitiveness and local environment situation • To establish a service infrastructure for fostering sustainability management culture and capacity • To encourage uptake of sustainability management tools and practices on national/regional level through active dissemination and promotion activities

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

Setting up company specific controlling systems for continuous monitoring and assessment

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Combining tools and services for industries - selected project references I • Green Productivity Project (GPP I / II) (Indonesia, Thailand, Philippines, Vietnam / 1999 - 2005) • Training on Cleaner Production Technology (CPT I / II / III / IV) (Indonesia, Thailand, Philippines, Vietnam / 2000 - 2004) •

Web Based Training: Life Cycle Oriented Plant Management (LCPM) / Vietnam, Indonesia, Thailand / 2001 - 2005)

•

Information Technology and Communication in the Field of Sustainable Environmental Protection for Resource Intensive Enterprises (ASIA IT&C FORCE) (Thailand / 2002 - 2004)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Company - CSR Objectives (qualitatively) Input on strategy formulation and assessment Enabling company- / industry wide comparable performance assessments Enhance internal and external communication tool Issue- and risk management Internal and external information provision Create / adapt company wide values system Enhance innovation potential and creativity Establish a continous improvement process Enhance employee commitment Strengthening of the corporate culture

0%

10%

20%

30%

40%

50%

60%

70%

80%

What will be the objective of the CSR activities with respect to your company? Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Selected Project References Asia II •

Technology Partnership and Training Cooperation in European Management Information Systems to Enhance the Competitiveness of Thai SMEs (SPF TEAMS SME; Thailand / 2006 – 2007, www.teams-sme.de)

•

European-Malaysian Alliance and Capacity Building of Malaysian Intermediary Institutions in European MIS to Enhance Corporate Social Responsibility in Export Oriented Malaysian SMEs (EMIT CSR (Malaysia / 2007 – 2008, www.emit-csr.de)

•

Empowering Asian Business Intermediaries through Knowledge-based Networking focused on Sustainability Management (EMP-ASIA; Thailand, Vietnam / 2007 – 2009, www.empasia.org)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries EPA Project Results - JBC Food Corporation, Caloocan, Philippines Identified Potential

Measure

Savings Potential / Impact

High disposal costs

Consistent and sorted separation of different waste fraction

Savings thus far: 395,000 pesos

Long downtimes on the production lines (esp. peanut line 2)

Selection of an alternative spare part for vibration damping

Savings thus far: approx. 100,000 pesos (for all lines); reduction of the downtimes (indirect savings: 91,000 pesos)

High employee dissatisfaction in individual production areas (difficult work conditions caused by climate)

Installation of a new ventilation system

Increase of product output by 10% on average (various product groups); clear reduction of employee illness and accident rate (difficult to estimate financially)

Unusually high energy consumption in peanut pretreatment (heating of peanuts in a water bath on gas basis [LPG])

Implementation of measures for preventive maintenance, cleaning of the boiler

Reduction of heating time by 50% - consequently reduction of gas consumption by 50% and increase of productivity; annual savings for all lines: 3.445 mil. pesos

Totel savings per year: US$ 180,000 (March 2005)

Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries EPA Project Results - Pusdiklat Migas, Cepu, Indonesia

Identified Potential

Measure

Savings Potential / Impact

Obsolete filter presses in the “wax plant”

Successive replacement of the old filter press segments

Savings thus far (minus investment): 256,000 Rupiah

High failure rates in the “power plant”

Installation of special equipment (load shading system) in September 2004

Savings thus far: approximately 96,000,000 Rupiah

High losses in the distribution of drinking water (leaks in pipe system)

Installation of new piping at the end of 2003

Annual saving: 401,760,000 Rupiah, payout time based on investment costs: approximately 4 years

Totel savings per year: US$ 220,000 (March 2005) Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Environmental Management Accounting for SME in South-East Asia Goals

¾ ¾ ¾ ¾

Activities

Know how transfer and dissemination of EMA Adaptation of EMA methods to the specific needs of South-East Asian companies Promotion of sustainable business development by showing economical and ecological savings Strengthening of capability and institution building ¾ ¾ ¾ ¾ ¾ ¾

12 Information workshops 16 Local case studies Development of training materials 12 Training seminars Computer-based training 5 Training of Trainers (TOT)

Target region

Indonesia, Philippines, Thailand, Vietnam

Main project partner

¾ ¾ ¾

CSM-Centre for Sustainability Management, Germany ASEP- Asian Society for Environmental Protection TEI-Thailand Environment Institute

Duration 10/ 2003 - 10/ 2007

www.environmental-accounting.org Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries Changing direction of businesses towards Sustainability Management What can we offer? ¾ Individual IT based performance controlling solutions for businesses based on EPA /EPI methodology for businesses (any size: micro, SME, big sized, supply chains) - Business performance management (e.g.KPI management) - Compliance management & reporting (Environmental – e.g. Proper, OHS) - CSR monitoring & reporting - Continuous improvement process ¾ Systems implementation & qualification of industries ¾ Building up and interlinking business support infrastructure ¾ Development and operation of service provider models ¾ Individual company implementation and support projects ¾ Branch solutions ¾ Qualification and institution building ¾ Development and operation of service on demand solutions Müller, Opierzynski, Blobner CSR Training for Industries, 2009

CSR Training Workshop for Industries

• www.sustain-asia.org

Müller, Opierzynski, Blobner CSR Training for Industries, 2009