all about csr
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Workshop presentation - Opening Meeting (Speakers: Gwenaëlle Terras - Eric May)TRANSCRIPT
CITIZEN ACT Opening MeetingWorkshop: All about CSR!
2nd February 2011Gwenaëlle Terras
CITIZEN ACT QUIZZ
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I : How much money is allocated to the market linked tothe environment in the world?
Definition : The market linked to the environment include allgoods and services linked with this sector :
renewable energies, improvement energetic housingconditions efficiency, recycling and management of wastes
1/ 590 billions of dollars2/ 35 billions of dollars3/ 1370 billions of dollars
.
Answer 3 : 1370 billions of dollars.
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II : How much will this sum represent in 2020 :
1/ It will remain the same2/ It will double
3/ It will decrease
Answer 2 : It will double
The market linked to environment may double by 2020 and reach asum of 2740 billions of dollars. It will generate millions of jobsaccording to the report of UNEP (United Nations EnvironmentalProgramme).
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III : What are the Equator Principles ?
1/ Crossing the Equator line
2/ A law implemented in Equator
3/ 10 principles established by financial institutions to evaluate andmanage environmental and social issues linked to the financing ofproject
Answer 3 : 10 principles established by financial institutions toevaluate and manage environmental and social issues linkedto the financing of project
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IV: What is the average percentage of disable people in a country?
1/ 10%2/ 15%3/ 8%
Answer 1 : 10%
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V: How much money is allocated to Socially Responsible Investingin the world in 2010?
1/ 2,8 billion euros
2/ 15,6 billion euros
3/ 39,2 billion euros
Answer : 15,6 billion euros allocated against 7,4 billion euros in 2008
Table of contents
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1. A day in my life of CSR expert
2. Definition
3. CSR and business
4. CSR and banking industry
5. What are the Equator principles
6. Société Générale and CSR
7. Examples of implemented actions
8. Case study
About me…
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A day in my life of CSRExpert!
Definition
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Corporate Responsibility is a concept whereby companies integrate socialand environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis
"Sustainable development is development that meets the needs of the presentwithout compromising the ability of future generations to meet their own needs."
(Brundtland report, « Our common Future »)
SOCIALSOCIAL Equitable ECONOMICECONOMIC
ENVIRONMENTALENVIRONMENTAL
SUSTAINABLESUSTAINABLEViableLiveable
CSR and banking industry What are the specific challenges facing the bank?
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Maintaining consumer confidence, ensuring the sound functioning offinancial and economic systems, contributing towards lasting economicand social development
Transparency of the activityClear, accessible, exhaustive information: rates, clauses, etc.Better understanding of the banking sector and its activities (e.g. tax havens, etc.)Use of funds: what exactly do banks do with their customers' money?Standards with Bâle II and Bâle IIIThe human capital factor: HRM and CSREthics and CSR: the aftermath of the financial crisis
Clients’ managementTailored, ‘personalized’ adviceFair treatmentEnsuring the delicate balance that ensures a win-win situation for both bank and customer:is the bank acting in my best interests?Access to and exclusion from banking servicesOver-indebtedness versus over-cautiousness…
Responsibility in the investments and financing activitiesDoes the bank offer "green" and/or charity products (that have a positive impact onsociety) and does it contribute towards the creation of a "green" economy?Does the bank finance (and invest in) activities, projects or businesses that have a negativeimpact (dirty money, cluster bombs, etc.)?
Responsibility
Transparency
Clients’management
Société Générale and CSR
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5 core priorities
1. a quality approach focused on the customer and a constantconcern for their satisfaction;
2. a robust system of corporate governance, which is continually beingadapted to the requirements of society;
3. increasingly robust internal control processes and risk management;
4. a comprehensive compliance policy and the application of ethicalvalues, helping to ensure our long-term performance;
5. a culture of innovation and a collective innovation programmedesigned to encourage employees to contribute to the Group’sdevelopment.
Société Générale and CSR
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How does Société Générale implement CSR:
1. Equator Principles’ implementation (GLFI/EME)2. Sustainable banking (Green Finance/ fair trade financing / E&S
criterias…)3. Carbon market (ORBEO)4. SRI5. Supportive products and solidarity-based products6. Facilitate the access to banking services (BDDF)7. Support to the creation of a company8. Micro-finance9. A responsible management: our HR policy
Société Générale and CSR
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• Signature of the Global Compact in 2003A joint commitment by a group of companies, UN institutions and civil
society focused around universal principles : human rights, labourstandards, environment
• OECD guidelines for enterprisesVoluntary principles and standards for responsible business
practices: publication of information, anti-corruption measures,taxation, social relationships, consumer protection…
• Signatory of the statement by financial institutions on the environmentand sustainable development (UNEP-FI) (2001)Unique international partnership between the United Nations
Programme for the Environment and the private banking sector.
• Signatory of the Carbon Disclosure Project (CDP) since 2006A Rockefeller Philanthropy Advisors initiative supported by the United
Nations Programme for the Environment.
Société Générale and CSR
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• Adoption of Equator Principles in 2007Principles relating to project finance based on the policies and
directives of the World Bank and IFC (International FinanceCorporation).
• Diversity Charter in FranceSigned in November 2004 alongside 40 major enterprisesMarch 2007: Société Générale received the Professional Equality Label
• SGAM Paris signatory of Principles for Responsible Investment (PRI)in 2006Integration of environmental, social and corporate governance
issues in the investment decision-making process
• Founding member of the Wolfsberg group in 2000Global anti-money laundering guidelines
• Participation in market working groups (Orse, EpE, Medef, Afep…)
What are the Equator Principles?
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•Equator Principles are : “a financial industry benchmark for determining, assessingand managing social & environmental risk in project financing”
• Launched in 2003 by ten international banks, EPs have now become a globalstandard for project finance
•EPs provide a framework for the environmental and social evaluation of projects:compliance with IFC social & environmental policies and quantitative environmentalguidelines (outside High Income OECD countries)
• A voluntary agreement, but “Equator has teeth”: Adopters agree that they “will notprovide loans directly to projects where the borrower will not or is unable to comply withour environmental and social policies and procedures”.
• November 2010, EP has been adopted by around 70 banks
How ?
Project financing (non recourse) with project costs > 10MUSD
Project financings covering new, expansion or upgrade of existingprojects which significantly change the nature or degree of existingimpact
Screen the level of social & environmental risk associated with allapplicable project financings and assign a risk category:
Category A – Projects with potential significant adverse social orenvironmental impacts that are diverse, irreversible orunprecedented
Category B – Projects with potential limited adverse social orenvironmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigationmeasures
Category C – Projects with minimal or no social or environmentalimpacts
What are the EPs requirements ? (1/3)
Scope
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For projects in high-income OECD Countries:Comply with assessment processes, requirements and standards
of local regulations
For projects in non-OECD, and those in OECD but not high-income countries:• In addition to compliance with local regulations (or as required
by local regulations), complete a Environmental and SocialImpact Assessment (ESIA)
• ESIA has to reflect IFC Performance Standards and IFCEnvironmental Health and Safety Guidelines (IE review and gapanalysis)
• Measures to be implemented to ensure compliance will bestructured in an Environmental and Social Action Plan (ESAP)
• The ESAP will be covenanted to the loan documentation
What are the EPs requirements ? (2/3)
How ?andWhere ?
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• Environment & Social issues covered by the standards :-Community: Health, Safety, Resettlement, Indigenous people,
Cultural property…-Environment: Ecology, Biodiversity and Natural habitats, Efficient
use of natural resources, Hydrology, Air, Water, Soil pollution…-Labour: Occupational Health & Safety, Child labour, Forced labour…
• Consultation / Disclosure-At the project level: consultation of local communities ; for the
most sensitive projects, establishment of a grievance mechanism
-For each EPFI, reporting requirement: report publicly the EPimplementation process and the number of projects reviewed atleast annually
• Independent review and monitoring for the most sensitive projects
What are the EPs requirements ? (3/3)
What ?
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Implemented action
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Case study : LNG Project in Middle East
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Case study : LNG Project in Middle East
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Case study : LNG Project in Middle East
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Case study : LNG Project in Middle East
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Caractéristiques :•LNG pipeline of 320 km – 1m diameter
•LNG Plant 7mt/year•Harbour•12 000 workers for construction; 1100 for operation
Documentation E&S :•ESIA•ESMP + Contractor Control Management Plan•Lender’s Independent Review
Follow up:•Quaterly monitoring during construction•Annualy during operation
Case study : LNG Project in Middle East
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Construction impacts:
•On terrestrial environment•On marine environment•On local population and cultural heritage
Exploitation :•Air & noise emission•Wastewater effluents & Waste•Emergency Response Plan
Case study : LNG Project in Middle East- Coral reef transplantation
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Marine ecosystem: coral reefs and a diverse fishpopulation.
Main potential construction impacts: potentialincrease in seawater turbidity
Case study : LNG Project in Middle East- Coral reef transplantation
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Mitigation measures:- Use of Silt Curtains- Corals transplantation to preserve corals in areas whereconstruction impact cannot be avoided.
Monitoring Process:•Daily site monitoring by marine contractors (water quality,qualitative coral conditions, etc).•Regular water quality sampling•In depth bi-monthly missions to check coral health and diversityagainst internationally accepted statistical criteria.•Regular monitoring missions by the Local Authorities MonitoringTeam
Results: overall, survival of corals one year after transplantationwas 91%.
Contact
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Gwénaëlle TERRASSociété Générale
Corporate Investment BankingGLFI/EME/ENV
+33 (0)1 58 98 52 63 [email protected]