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CSR Case Stu dy :

DuPont Canada

Real izing Susta inable Grow t h

Final Draft

Prepared for:

The Interdepartmental Working Group onCorporate Social Responsibility (CSR)


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Corporate Social Responsibility: Lessons Learned Final DuPont Case Study

1 Corporate Overview

DuPont Canada

DuPont Canada, established in 1877, is a diversified science company that produces a wide range

of products including nylon, industrial yarn, synthetic fibers, polymer resins, packaging films,

automotive finishes, crop protection products, and industrial chemicals. Headquartered in

Mississauga, Ontario, DuPont Canada is actively living the directive of Sustainable Growth,

under the care of Dave Colcleugh, DuPont Canadas President and CEO. DuPont Canada

currently employs approximately 4,000 employees and serves customers across Canada and in

more than 40 other countries.1 The company serves global markets through a number of

subsidiaries in Canada, the United States, Mexico, France, the United Kingdom and India

About 76 per cent of the common shares of DuPont Canada are owned by E.I. du Pont de

Nemours and Company. The remaining shares are held principally by Canadian investors,

including close to 2000 employee shareholders. E.I. du Pont de Nemours and Company operates

in more than 70 countries worldwide (in North America, South America, Asia Pacific, Europe,

the Middle East and Africa) and has approximately 135 manufacturing and processing facilities.

2 Business Context: The Global Chemicals Industry

The chemicals industry converts raw materials (oil, natural gas, air, water, metals, minerals) into

more than 70 000 different products. Chemicals are used to make a wide variety of consumer

goods, as well as thousands of products that are essential inputs to agriculture, manufacturing,

construction and service industries. The industrys linkages to a large number of sectors make it

susceptible to the ups and downs of the overall economy. Globally, the chemicals industry is a

$1.5 trillion enterprise, and in Canada, the chemicals and chemical products sector represents a

$30 billion dollar industry.2 According to the Canadian Chemical Producers Association (CCPA),

Canadas chemical industry is at the forefront of high technology in its manufacturing capability,

workforce and adoption of innovative products and processes. Investments in the latest and best

emerging technologies have created the conditions for strong growth in Canadas chemicals

manufacturing industry, which is growing at an average annual rate of 4 percent. A significant

proportion of the output of Canadas chemicals industry is exported (roughly 55 percent).

The chemicals industry was one of the first sectors to develop a comprehensive and systematic

approach to managing environment, health and safety issues. This is due in part to having come

under greater and earlier public scrutiny than other industries. For example, public confidence in

the sector came into question with the publication of Rachel Carsons bookSilent Spring, which

focused on the potential ecological and human health effects of synthetic chemicals. Significant

1 DuPont Canadas 2001 Sustainable Growth Report. Creating Value and Doing Good.2

Hhttp://www.eia.doe.gov/emeu/mecs/iab/chemicals/H and Hhttp://www.ccpa.ca/english/position/concerns/index.htmlH

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public scrutiny was also drawn to the sector after the disastrous gas release of methyl isocyante at

Union Carbides insecticide plant in Bhopal, India. These and other concerns about the potential

ecological and human health impacts of chemicals brought the safety of the industry as a whole

into the global spotlight and resulted in an erosion of public trust and confidence.

The chemicals industry responded to this erosion of public trust and confidence by establishingthe Responsible Care program, which is founded on the principles of commitment, innovation

and continuous improvement.3 This program, which was first developed by CCPA in Canada,

has now become the international standard for stewardship in the chemical industry, and it is now

practised in over 40 countries.4 Responsible Care integrates the management of environment,

health and safety issues, and places a special emphasis on community awareness and emergency

response. All member companies of CCPA are required to follow the Responsible Care standard

into their day-to-day operations. Responsible Care utilizes a life cycle approach to managing

chemicals, and consists of six management codes: 1) Community Awareness and Emergency

Response (CAER); 2) Research and Development; 3) Manufacturing; 4) Transportation; 5)

Distribution; and, 6) Hazardous Waste Management.

Public concerns over chemicals have also had a hand in the drive to establish right-to-know acts

in some jurisdictions which established strict requirements for national, regional and local

governments, and industry regarding emergency planning procedures and community right to

know reporting on toxic chemicals used by companies. Right-to-know acts significantly

increased public access to company information and have led to increased demands from the

public and civic groups for information on the nature and quantities of industrial chemicals

released into the environment. A number of mandatory reporting programs such as the Toxics

Release Inventory (TRI) in the USA and the National Pollutant Release Inventory (NPRI) in

Canada grew out of the right-to-know movement. These inventories, which are more generally

known as pollutant release and transfer registries, are publicly accessible databases on toxic chemicals

developed and maintained by the federal governments in both countries. A number of countries

around the world maintain similar mandatory or voluntary pollutant release and transfer registries.

Responsible Care, right-to-know legislation and mandatory reporting requirements were

significant drivers for the chemicals sector to become better corporate citizens. As a consequence,

chemical and petrochemical companies, generally speaking, tend to be farther along the learning

curve than some other sectors in terms of the environmental aspects of corporate social

responsibility.

In its report5 to the World Summit on Sustainable Development, the International Council of

Chemical Associations (ICCA) identified four major issues facing the sector today: 1)

3Responsible Care: The Codes of Practice. Canadian Chemical ProducersAssociation. Hhttp://www.ccpa.ca/english/who/rc/H

4Responsible Care: Who We Are. Canadian Chemical ProducersAssociation. Hhttp://www.ccpa.ca/english/who/rc/\H

5International Council of Chemical Associations. 2002. Industry as a Partner for Sustainable Development: Chemicals .United

Nations Environment Programme. Hhttp://www.uneptie.org/outreach/wssd/contributions/sector_reports/sectors/chemicals/chemicals.htmH

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globalization; 2) safety: process, products, people; 2) capacity building on chemical safety; and, 4)

innovation.

With respect to globalization, key issues identified in the report include the need to maintain

high standards on environmental, health and safety as the chemicals industry expands into global

markets, the sound management of chemicals and trade and investment policies.

On the safety front, the report notes that the sector must continue its adoption of Responsible

Care (it is now in 46 countries) and meet increasing demands for information on chemical

substances.

In the area ofcapacity building on chemical safety,

the ICCA suggests that the sector must continue its

dissemination of information and knowledge about

chemicals and their safe use. The targets for this

information are not only chemical companies but alsojoint venture partners, suppliers and customers.

Box 1: DuPonts GlobalCommitment to Safety, Health andthe Environment

We will conduct our business with

respect and care for theenvironment.

We will implement those strategiesthat build successful businesses andachieve the greatest benefit for allour stakeholders withoutcompromising the ability of futuregenerations to meet their needs.

We will continuously improve ourpractices in light of advances intechnology and new knowledge insafety, health and environmentalscience.

We will make consistent, measurableprogress in implementing thiscommitment.

According to the ICCA report, technological and social

innovation can do much to improve quality of life and

address the depletion of resources and the build-up of

pollution around the world. The report sees a key

objective for the sector in developing new

manufacturing processes that will reduce risks to

human health and the environment, and in working

with customers to meet demands for more sustainableproducts. They note that these innovations will require

more investment in research and development.

3 DuPonts Journey towards Sustainable Growth

Change is part of DuPont's culture

Evolving and adapting to meet changing societal expectations has been an important part of

DuPonts culture. Both the parent company and DuPont Canada have demonstrated an ability to

adapt to changing circumstances, which can be attributed to the importance of science in the

companys business model, with its emphasis on discovery. The ability to transform and reinvent

itself several times during its history is an important reason why DuPont continues to be a

competitive global company two centuries after its founding.6 In 2002, the company celebrated

its 200th anniversary and it has changed its business portfolio significantly since its inception in

1802.

6The DuPont Story. Global DuPont Website. Hhttp://www.dupont.com/corp/overview/anniversary/story.htmlH

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DuPonts first major product was explosives. Not surprisingly, safety has been a high priority for

the company since its inception. According to Rhonda Carlin, DuPont Canadas Business

Sustainability Resource, the company would probably not be celebrating its 200th anniversary if it

had not started out by emphasizing safety in the manufacture and use of its products, and by

instilling safety early on as a core value of the company. 7 DuPont and DuPont Canada have some

of the best safety records in the world and are committed to evolving their business portfolioswhile staying true to their safety ethic and values. Over the years the company has transitioned

from making explosives to manufacturing industrial chemicals and products, and is now striving

for less material intensive, and more knowledge intensive, products and services.

Setting Aggressive Environmental Goals

Box 2: Environmental Goals of the 1990s

Reduce total discharges (excluding CO2) by50% by year 2000 based on 1990discharges to air, land and water.

Eliminate or render harmless all toxicemissions to the environment by 1995.

Reduce the energy intensity of ouroperations by 25% by year 2000 based on1990 energy intensity. Re-established in1996 to reduce an additional 15% by 2005.

Improve our manufacturing operations byestablishing robust audit processes.

Reduce uncontrolled releases to theenvironment.

Establish community dialogue processes atall of our manufacturing sites.

A major turning point for DuPont in its

efforts to address its environmental footprint

came in 1988 when Greenpeace named the

company Number One Corporate Polluterin the USA. Greenpeace representatives

scaled one of the companys stacks at its New

Jersey facility and hung a huge banner that

read DuPont Number One Polluter to

draw media and public attention to the

company.8 At this point, DuPont asked itself

a serious question, Even though we comply

with environmental laws, is this where we

want the company to be? And the answer

was no. The company acknowledged that in

spite of its compliance record, it was still a

significant polluter and that something could be done. The event marked the beginning of an

enormous effort to reduce the companys pollution and reduce its overall environmental

footprint. DuPont developed a Global Commitment to Safety, Health and the Environment (See

Box 1) and laid out a number of actions that would help the company achieve its global

commitment to reduce its environmental footprint.9 DuPont Canada also shares the same

commitment to global health, safety and the environment. To fulfill this commitment to safety,

health and the environment, the company states that it will:

Adhere to the highest standards of performance and business excellence;

Aim for the goal of zero injuries, illnesses and environmental incidents;

7Personal Interview with Jennifer Hooper, Rhonda Carlin and Colleen Brydon. Dupont Canada Inc. July 18

th, 2002.

8Bonda, Penny S., Follow the Leader. HGreen@WorkH magazine. July/August 2002.

9DuPont Canada. Studies in Sustainability: Report 2000, Safety, Health and the Environment. Global Commitment to SH&E

taken from Inside Cover.

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Drive toward zero emissions and zero waste generation;

Excel in the efficient use of energy and natural resources, and manage lands to enhance

wildlife habitat;

Continuously improve processes, practices and products to reduce risk and impact throughout

the product life cycle;

Promote open and public discussion of environmental issues and build alliances to develop

sound public policies and regulations; and,

Educate, train and motivate employees and executives to comply with the environmental

commitment, and provide accountability by reporting regularly to the public.10

DuPont Canada advanced its commitment to environmental improvement even further when it

set a number of very ambitious environmental goals in 1990 that were to be achieved by the year

2000 (Box 2 reviews the environmental goals).11 The environmental goals were groundbreakingfor the time, and many employees of the company were sceptical that they were achievable.

Despite these early misgivings, the company not only met its targets, but in many cases, exceeded

them. As an example, many employees of DuPont Canada felt in 1990 that reducing total

emissions by 50% in 10 years would be difficult to achieve. However, DuPont Canada reached

that goal, and by the year 2000, had achieved an 85% reduction in all emissions other than carbon

dioxide.12

The success in meeting these environmental targets has been attributed, in part, to the problem-

solving work environments at DuPont Canada.13 The company excels at envisioning where it

wants to be as a company, and is not afraid to "think big" when it devises strategies to achieve its

vision. This goal-setting approach is somewhat unique in the corporate world and with it comes

some bold risks. When DuPont Canada publicly commits to meeting specific environmental,

economic and social goals in its annual Sustainable Growth Reports, it opens itself up to scrutiny

from all stakeholders.

Today, Dupont Canada has committed itself publicly to achieving Sustainable Growth, which it

defines as increasing shareholder and societal value while decreasing the company's

environmental footprint.14 The company is committed to being a responsible corporate citizen

and is recognized as a leader for its progressive environmental and social programs. The company

is building upon its success in environmental performance and in 2000 developed new Sustainable

Growth goals, pursuits and targets for 2010, which include goals related to economic prosperity,

10DuPont Canada, Studies in Sustainability: Report 2000, Safety, Health and the Environment. Additional commitments taken

from Inside Cover.11

Presentation from Jennifer Hooper, Rhonda Carlin and Colleen Brydon. Dupont Canada Inc. July 18th, 2002.12

Taken from the President's Message. DuPont Canadas 2001 Sustainability Report. Creating Value and Doing Good.13

Personal Interview with Jennifer Hooper, Rhonda Carlin and Colleen Brydon. Dupont Canada Inc. July 18th, 2002.14

DuPont Overview. Sustainable Growth. Global DuPont website.Hhttp://www.dupont.com/corp/overview/glance/sus_growth.htmlH

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societal value and environmental responsibility. All major business units were involved in the

exercise of setting the 2010 Sustainable Growth pursuits and metrics. DuPont Canada believes it

is important to have as many employees as possible involved in the setting of sustainability

targets, to ensure that employees are motivated and empowered to meet or exceed the targets that

are set. The company is currently developing its own strategies to meet the new 2010 goals. These

will be discussed in more detail in Section 4 below.

Senior level commitment to sustainability within the company has been a major factor in the

companys ability to advance its Sustainable Growth mission. Dave Colcleugh, DuPont Canadas

President and CEO, and Charles Holliday, CEO of the parent company, have been key

supporters and vocal advocates for sustainable development in many arenas. DuPont Canadas

new President and CEO effective January 2003, Doug Muzyka, shares the same vision and

commitment.

DuPont and the Global Compact

DuPont sees value in being a role model for sustainability and subscribes to and endorses a

number of international codes of conduct or principles related to sustainability and corporate

social responsibility. For example, the parent company has endorsed the United Nations Global

Compact, citing that DuPont's core values of innovation and discovery, safety and

environmental stewardship, integrity and high ethical standards, and treating people fairly and

with respect meet and in many respects exceed the goals embodied in the values set out in the

Global Compact.15

UN Secretary-General Kofi Annan launched the Global Compact on January 31st, 1999, to foster

good corporate citizenship among global corporations. The Secretary-General recognized thatcorporate responsibility was an emerging business trend but believed there was no international

framework to guide companies in the development of CSR strategies and values.16 The Global

Compact is a voluntary initiative and is based on nine principles in the areas of human rights,

labour and environment. The Compact asks companies to integrate these nine principles into core

business practices and to demonstrate projects or activities that contribute to the principles on an

annual basis.

On April 30, 2001, in a letter to Kofi Annan, DuPont endorsed the Global Compact. In his letter

of endorsement, Chad Holliday stated, As with other commitments at the principle level, we will

develop implementation actions that are consistent with DuPont policies and practices. However,we also expect that our association with the UN and other Global Compact companies will

provide the opportunity to learn and leverage the best practices of others. 17

15

Global DuPont Worldwide Website, Hhttp://www.dupont.com/corp/news/position/global_compact.htmlH16

About the Global Compact. www.unglobalcompact.org/17

Global DuPont Website, Hhttp://www.dupont.com/corp/news/position/global_compact.htmlH

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DuPonts endorsement of the Global Compact is a good example of the companys desire to be a

leader. It chooses to align with leading organizations that are in front of the learning curve on

CSR and sustainability. DuPont is taking an active role in addressing climate change and has

partnered with the World Resources Institute, Environmental Defense, and the Pew Center for

Global Climate Change.18 Chad Holliday, global DuPonts CEO, is former chairman of the

World Business Council for Sustainable Development and in this capacity, he co-chaired theWBCSD's study on Sustainability Through the Marketwith John Pepper, Chairman of Proctor and

Gamble.19

4 DuPont Canadas Vision of Sustainable Growth

DuPont Canada's Health and Safety, Environmental

Excellence, and Sustainable Growth activities have

often been recognized as best practices by the parent

company in speeches and other public events. E.I. duPont de Nemours & Company (the global DuPont

company) has presented DuPont Canada with

Sustainable Growth Awards each year since 2000 for

various sustainability initiatives including greenhouse

gas emission trading and various recycling programs at

DuPont Canadas Kingston facility. DuPont Canada

has one of the best safety records of any Canadian

industrial corporation and is the only member company

to win the Excellence in Safety Awards from the

Canadian Chemical Producers Association (CCPA) sixconsecutive years (1997-2002).20 DuPont Canada is proud of its individual commitments to

sustainability and its vision for Sustainable Growth will be discussed in detail below.

Box 3: DuPonts Canadas DirectionStatement

Safety, Health, Concern and Care forPeople, Protection of theEnvironment, and Personal andCorporate Integrity, are thiscompany's highest values, and wewill not compromise them.

We are committed to becoming a moreMarket-Driven, Customer-OrientedOrganization of Diverse, Self-Managed People, Dedicated toQuality and Innovation andcommitted to achieving ContinuousImprovement, as measured by our

Relative Competitive Position.

DuPont Canada refers to its CSR activities as Sustainable Growth. DuPont Canadas commitment

to Sustainable Growth has its foundations in the companys Direction Statement, which is

reproduced in Box 3.21 This statement, which expresses the companys commitment to the

environment, health and safety, has served as a guide for the company for more than 15 years. To

supplement its Direction Statement, DuPont Canada further articulates a philosophy on personal

and corporate integrity, which states, the company will conduct its affairs to the highest ethical

18Sustainable Growth Strategies: Stakeholder Engagement. Global DuPont Website.

Hhttp://www.dupont.com/corp/social/SHE/usa/us4.htmlH19

Speeches: Making Markets Work for All. Global DuPont website.Hhttp://www.dupont.com/corp/news/speeches/holliday_04_18_01.htmlH20

Awards and Recognition. DuPont Canadas website.Hhttp://ca.dupont.com/NASApp/dupontglobal/ca/index.jsp?page=/content/CA/en_US/overview/awards/index.htmlH21

Direction Statement taken directly from DuPont Canadas website.Hhttp://ca.dupont.com/NASApp/dupontglobal/ca/index.jsp?page=/content/CA/en_US/overview/glance/direction.htmlH

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standards and will work diligently to be a leading corporate citizen.22 Employees are expected to

do the following:

Be fair and honest in all of our dealings on behalf of the company;

Do what is right rather than what is expedient;

Conduct all of our dealings with suppliers, customers and others in a manner that excludes

consideration of personal advantage;

Respect the individual dignity and legitimate rights and interests of fellow employees;

Be a good corporate citizen in each community in which we operate;

Be concerned not only with what our action is, but also with what it appears to be; and

Regularly monitor our actions to ensure that we are living up to the standards that we haveestablished.23

In its 2001 Sustainable Growth Report, DuPont Canadas President and CEO Dave Colcleugh

reinforces the companys commitment to corporate citizenship by saying:

Revenue and earnings have been the traditional measures of success of a company. But for DuPont

Canada, that is simply not enough. How we create value is as important as the results we deliver. We

believe that by serving the needs of all stakeholders including employees, value chain partners,

shareholders, our communities and the public at large we can achieve financial success and create lasting

benefits.24

This commitment is echoed in DuPont Canadas Sustainable Growth Mission, which is to

create shareholder and societal value while decreasing its environmental footprint throughout the

value chains.25 To fulfill its mission, the company has established three goals for 2010, each with

accompanying pursuits, and metrics for measuring improvement. DuPont Canada built upon the

goals that were set by the parent company and added supplementary pursuits and metrics, which

it felt, were important to live out its own Sustainable Growth mission. These Sustainable Growth

goals and pursuits were developed in consultation with all of the companys business units. Table

1 lists DuPont Canadas three key goals and the detailed pursuits and metrics associated with

those goals. Meeting these goals and metrics is the responsibility of all DuPont Canadaemployees.

22Philosophy on personal and corporate integrity taken directly from DuPont Canadas website.

Hhttp://ca.dupont.com/NASApp/dupontglobal/ca/index.jsp?page=/content/CA/en_US/overview/glance/direction.htmlH23

Philosophy on personal and corporate integrity taken directly from DuPont Canadas website.Hhttp://ca.dupont.com/NASApp/dupontglobal/ca/index.jsp?page=/content/CA/en_US/overview/glance/direction.htmlH24

Presidents Message. DuPont Canadas 2001 Sustainable Growth Report.25

Sustainable Growth Mission. Taken from DuPont Canadas 2001 Sustainable Growth Report. Page 2. This is also GlobalDuPonts Sustainable Growth Mission, taken from the corporate website:Hhttp://www.dupont.com/corp/overview/glance/sus_growth.htmlH.

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Table 1: DuPont Canadas 2010 Sustainable Growth Goals26

Goals Pursuits & Metrics

Triple current earnings by 2010 as we lead the evolution of our valuechains.

Primary metrics: Current earnings and the percentage of current yearrevenue derived from businesses, products and services introduced in theprevious five years, with a goal of 33% by 2010.

DuPont Canada has recognized that in order to meet this particular pursuit, it willneed to evolve its product portfolio. The company is currently looking for newmarket opportunities where it can leverage its strengths. The company is workingto develop new sustainable businesses to compliment its traditional businessesand expects its product portfolio to change significantly over the next ten years.

27

Derive 25% of revenue by 2010 from non-depletable resources (such assoy-based polymers, recycled materials, knowledge-based offerings, etc.).

Primary metric: Percentage of current year revenue derived fromofferings using non-depletable resources, with a goal of 25% by 2010.

Increase the value of our offerings while reducing the material intensity. Primary metric: Increase in earnings per unit of product.

DuPont Canada wants to continue increasing its total earnings whilereducing the amount of kilograms of product sold (i.e. The company isstriving for less material intensive products and services in favour of moreknowledge intensive products and services).

28

Elevate the quality of life for more of the worlds population.

Primary metric: Increasing percentage of the worlds population reachedby DuPont Canada products.

DuPont Canada indicated that it is presently working on business strategies thatwill help the company meet this metric.

The parent company DuPont is currently undertaking a great deal of work in thisarea. Its CEO Chad Holliday expresses the companys commitment to addressingthis metric with the following statements. "There are currently 2.8 billion peoplearound the world living on $2 a day or less," stated Chad Holliday. "This is astaggering figure. Such poverty means that half the world's population has little orno access to the market and little hope to improve their lives. We simply mustaddress the needs of the developing world, or sustainability will be impossible. Themarket is the best way to do this."

29

Goal # 1

We will evolve our

portfolio ofbusinesses incollaboration withall stakeholders.

Raise stakeholder engagement to a new level.

Primary metric: Increasing number of collaborative processesundertaken.

DuPont Canada is presently creating an External Advisory Council to help guidethe companys Sustainable Growth efforts.

26Taken from DuPont Canadas 2001 Sustainable Growth Report: Creating Value and Doing Good.

27Follow up Interview with Rhonda Carlin, Corporate Business Sustainability Resource, DuPont Canada. Wednesday November

27th, 2002.

28Follow up Interview with Rhonda Carlin, Corporate Business Sustainability Resource, DuPont Canada. Wednesday January

8th, 2003.

29Excerpt taken from News Release on Global DuPonts website. GLOBAL BUSINESS LEADERS INTRODUCE SEVEN KEYS

FOR IMPROVING LIVES THROUGH THE MARKET. World Business Council for Sustainable Development, with DuPont andProcter & Gamble, outline the importance of the marketplace to improving the quality of life. Released April 18

th, 2001.

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Table 1: DuPont Canadas 2010 Sustainable Growth Goals26

Goals Pursuits & Metrics

Advance our core values within our company, our communities and ourvalue chains.

Primary metrics: The number of work-related injuries and illnesses,environmental spills and ethics violations.

Provide our employees with meaningful work and opportunities forpersonal and professional growth.

Primary metrics: The percentage of employees with triple bottom lineaccountability, the rate of absenteeism and employee turnover.

Seek out, derive advantage from, and celebrate our diversity.

Primary metric: Diversity in our workforce.

Goal # 2

We will help buildvibrant,sustainablecommunities bydevelopinginterdependentrelationships,based on ourcommon pursuits.

Break new ground in our relationships with communities.

Primary metric: the number of community-based outcomes achieved(e.g. Social Innovation Enterprise Program).

Drive eco-efficiency throughout our value chains.

Primary metrics: The percentage reduction in energy intensity and wasteintensity with a 15% reduction goal by 2010, and the reduction in totaldischarges to air, water and land.

Develop and adopt cleaner technologies and influence the technologychoices of our value chain partners.

Primary metrics: The percentage reduction in smog emissions with a40% reduction goal by 2010 and the percentage increase in energysourced from renewables to a 10% goal by 2010.

Goal # 3

We will eliminatewaste from ourprocesses anddevelop cleanertechnologies andproducts.

Equip consumers to make informed product choices - choices based oneconomic, environmental and social sustainability.

Primary metric: The number of product risk/benefit assessmentsperformed and communicated.

DuPont Canada expects that the pursuits and metrics set out in Table 1 will evolve over the next

10 years. As the company advances in each area, it might recognize additional, or more

appropriate metrics that will help the company more effectively address each Sustainable Growth

goal.

DuPont Canada plans to communicate these 2010 goals, pursuits and metrics to its employees

using a variety of channels such as the companys internal newsletter, the annual CEO address,

ongoing Sustainable Growth progress reports, and other methods. The company recognizes that

it is not effective to simply present the goals, pursuits and metrics and expect employees to beginintegrating them into their daily business routines and planning. It will take time to get the

message through to all employees, to actually incorporate the Sustainable Growth goals in core

business practices, and the company is working on strategies to achieve this.

To measure and track performance using the pursuits and metrics laid out in Table 1, DuPont

Canada has developed a radar chart (Figure 1). Each performance metric is given equal weighting

in the chart and the coloured lines signify the companys accomplishments in 2000 and 2001

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towards the Sustainable Growth Goals (red being baseline in 2000, blue represents progress made

in 2001). Each point around the outside of the radar chart represents the pursuits set out in Table

1. For example, as DuPont Canada is at a very early stage in developing plans to meet its Global

Equity pursuit (Increasing the percentage of the worlds population reached by DuPont Canada products), the

progress line indicates very little advancement in that particular area on the radar chart.

Figure 1: Measuring Rapid Sustainable Growth in Stakeholder Value

0.0

1.0

2.0

3.0

0.0

1.0

2.0

3.0

EarningsPortfolio

Non Depletables

Global Equity

StakeholderEngagement

Work Evolution(Percentage Employees)

Core Values

Diversity

CommunityIntegration

Eco-efficiency

Clean Technology

ConsumerChoice

Dematerialization

20002001

1.0: BELOW PLAN2.0: AT PLAN3.0: EXCEEDED PLAN

Last updated June 18, 2002

The above chart provides a framework for discussion at DuPont Canada business meetings, as a

useful visualization or snapshot that shows how the company is doing holistically.

In his annual Presidents Message in 2001, Dave Colcleugh noted that he expects DuPont Canada

to make steady and measurable progress towards these new Sustainable Growth Goals. He

continued by saying that he envisions that, by 2010, DuPont Canada will be a dramatically

different company from the one it is todaywith a significantly changed business portfolio, new

and deeper relationships with communities and value chain partners, and innovative ways to

preserve natural resources.30

This demonstrates forward-thinking and is another example of howchange is an intrinsic part of DuPont Canadas success as a company.

30Presidents Message. DuPont Canadas 2001 Sustainable Growth Report.

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5 DuPont Canadas Sustainable Growth/CSR ProgramAreas

DuPont Canadas determination to succeed with its environmental excellence programs in the

1990s was discussed earlier in Section 3. Environment has been an important part of the

companys CSR/Sustainable Growth Journey. Two additional CSR program areas that DuPont

Canada highlights for best practice are Communities and Stakeholder Engagement (which have

been combined as they are interrelated) and Sustainability Reporting.

5.1 Communities & Stakeholder Engagement

Historically, DuPont Canada has maintained relationships with its local communities. The

companys manufacturing facilities have a significant presence in communities, and from its early

days, the company has had a significant corporate philanthropy program. In recent years,

community involvement has become more strategic and has included more outreach. Responsible

Care was an early driver that led DuPont to look outside communities to broader stakeholder

groups. At the same time, public expectations began to change and have become more

demanding of corporations in terms of more meaningful engagement. DuPont Canada has

responded to these demands by developing a number of unique community and stakeholder

engagement programs, in addition to the companys traditional activities of corporate investing

and charitable giving. The following are examples of DuPont Canadas innovative community and

stakeholder engagement programs.

Social Innovation Enterprise

DuPont Canadas commitment to creating lasting value in communities is perhaps best illustrated

by its groundbreaking Social Innovation Enterprise Program. The Social Innovation Enterprise is

now a cornerstone of DuPont Canadas community investment program and represents a

significant paradigm shift from a focus on input (what the company gives) to a focus on output

(what value it actually creates).31

Several years ago, some senior executives from DuPont Canada were reviewing the companys

community investment programs and began to ask whether the companys financial contributions

were having the impact the company desired. There was agreement among senior executives that

their approach to community investment was not very strategic or as effective as it could be.

This type of self-questioning and desire for continual improvement is characteristic of DuPont

Canada. The company strives to consider more than just the bottom line to contribute value to

communities and society in general. This realization also represented a significant paradigm shift

for the companys approach to community investment. The company realized that it could have

greater impacts by moving beyond just making financial contributions. They believed that its

knowledge, skills and capabilities could be applied to make a positive contribution in the social

31Presentation from Jennifer Hooper, Rhonda Carlin and Colleen Brydon. Dupont Canada Inc. July 18

th, 2002.

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Box 4: The Garage

A team-based, collaborative prototypingchallenge that aims to stretch or ignitethe creativity of participants. Anexperience space that will enable OSCvisitors/participants to develop problemsolving skills in a collaborative setting.

OSC/DuPont Innovation Project 2002

sector. DuPont Canada expresses this view as follows: Corporate citizenship is a part of doing

business, but we were not approaching it in a very business like fashion.32

In response to DuPont Canadas desire to create more value, the company met with leaders in the

voluntary sector. These discussions led DuPont Canada to realize it could make an important

contribution to innovation in the social sector. DuPont knew that innovation was extremelyimportant to its business and decided that extending innovation to the social arena seemed

natural. In DuPont Canadas view, social innovation can be considered the development of

practices, processes and strategies that generate greater and better societal value than those that

are currently being created through existing processes and systems.33

DuPont Canada launched its new Social Innovation Enterprise Program as a means of applying

its competency in innovation to the social sector and of collaborating with stakeholders. DuPont

Canada is particularly interested in working on advancing the processes that enable collaboration.

It is a need in the social sector and it is also a need for us [DuPont]that we hope to learn about

and bring back in to improve our business innovation processes.34

Product and serviceinnovation at DuPont rely heavily on collaborative processes among multi-disciplinary employees.

Bringing employees from different departments of the company together enables better solutions

through more comprehensive decision-making. Collaboration with external stakeholders is also

important for DuPont Canada to evolve and grow its business. For example, rapid technological

change has, and will continue to, force the company to focus on core competencies and to rely

more on external partnerships (i.e. with its value chain) for accessing additional cutting-edge

technology and expertise.35 Aside from technological aspects, DuPont Canada also believes that

collaborating with external stakeholders will help the company tap into and leverage new market

opportunities.

As a first step for the Social Innovation Enterprise, DuPont Canada formed a collaborative

partnership or demonstration project with

Opportunities 2000, a poverty-reduction organization

in Kitchener-Waterloo, Ontario. The company

deliberately sought out an organization that was

dissatisfied with the results of its current programs.

An independent consultant helped DuPont identify

Opportunities 2000 as a pilot test, by interviewing

voluntary sector organizations in Southern Ontario.

The partnership is now in its 2nd year of a 3-year

32Linking Social Accountability Management and Organizational Innovation: A New Approach to Value Creation. Prepared for

Industry Canada by the Conference Board of Canada. June 2002.33

Linking Social Accountability Management and Organizational Innovation: A New Approach to Value Creation. Prepared forIndustry Canada by the Conference Board of Canada. June 2002.34

Quotation from Colleen Brydon. Manager Social Innovation Enterprise taken from Linking Social Accountability Managementand Organizational Innovation: A New Approach to Value Creation. Prepared for Industry Canada by the Conference Board ofCanada. June 2002.35

Linking Social Accountability Management and Organizational Innovation: A New Approach to Value Creation. Prepared forIndustry Canada by the Conference Board of Canada. June 2002.

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commitment, and thus far the feedback from the organization has been very positive. It is still

early to see if the program is generating greater value for the pursuit taken, but there has

nonetheless been a noticeable change in work practices as the Opportunities 2000 is taking a

more holistic approach to its programs and overall strategy.

DuPont Canada is also working with the Ontario Science Centre (OSC) to study the relationshipbetween innovation and collaboration. The project is specifically focusing on identifying tools and

processes for organizations to provide the conditions that enable people to collaborate. Box 4

provides an example of one such a tool, the Garage.

This Social Innovation Enterprise program is an example that illustrates DuPont Canadas

commitment to raise stakeholder engagement to a new level. The company looks for win-win

solutions that ensure the company is making a difference in local and global communities.

DuPonts Advisory Council

Dupont believes that collaborating with external resources (NGOs, community groups,

government, etc.) will help them better understand sustainability issues and stakeholder

expectations of their company and is presently developing an External Advisory Council. The

purpose of the Council is as follows:

The Advisory Council will bring understanding at depth to complex sustainability issues and will

influence DuPont Canadas implementation strategies for Sustainable Growth. Their divergent

perspectives will enhance innovation and opportunity, improving the quality and integrity of outcomes

associated with our 2010 Sustainable Growth goals36

DuPont Canada has developed terms of reference for the Council and has retained an

independent facilitator, highly skilled in the areas of stakeholder engagement and sustainability, to

facilitate the process. DuPont Canada expects to hold its first Advisory Council meeting early in

2003.

The Council will consist of five external members and five internal Dupont members. The five

external members will represent the companys key stakeholder groups: community/civil society,

special interest groups, academia, government and value chain partners. The five internal

members will be senior DuPont Canada personnel, including the President of DuPont Canada,

the Director of Safety Health and the Environment, the Vice President of Human Resources and

two additional senior Business Leaders.37 The Council will meet twice a year, and may invite

additional experts to participate if specific issues of concern arise that are beyond their area of

expertise.


27th, 2002.37Follow up Interview with Rhonda Carlin, Corporate Business Sustainability Resource, DuPont Canada. Wednesday November

27th, 2002.

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Community Advisory Panels (CAPs)

In local communities where DuPont Canada conducts business, the company has organized

Community Advisory Panels (CAPs) to ensure there is effective communication of hazard and

risk information to community members. The panels also provide opportunities for open,

ongoing dialogue with community stakeholders. A manager at each site is responsible fordeveloping an understanding of the unique community in which the facility operates, the products

produced and the level of risk inherent in the manufacturing process. Managers also have

responsibility to communicate these risks to community members effectively.

For example, one initiative, that is part of the overall CAP program at DuPont Canadas Maitland

site, sponsors a page in the local phone book describing the Community Alert Network telephone

messaging system.38 This allows members of the community to get accurate and timely

information on any emergency that may occur.

DuPont Canadas Maitland Ontario site also recently conducted a comprehensive DuPont andcommunity disaster test, where it integrated DuPont and community emergency response plans in

a fully simulated off-site event. Results were highly successful for all parties involved and

illustrated another effective way DuPont Canada communicates risk information to local

communities and involves them in business operations.39

To fulfill expectations for local community engagement, DuPont Canada holds frequent public

meetings in local communities where the company has operations. For example, recently at the

companys Ajax facility, the Performance Coatings Department hosted two Community Advisory

Panel meetingsone for industrial neighbours and one for local residents. These panel meetings

are part of the code of practice recommended by the Canadian Chemical Producers' AssociationsResponsible Care Program.

Attendees listened to presentations about:

The performance coatings business presented by the site and technical manager;

The site's environmental status presented by the facilitys environmental co-ordinator;

The Ajax emergency response program presented by the emergency response co-ordinator;

and

The site's involvement in the community presented by the safety and security co-ordinator.40


th, 2002.

39Follow up Interview with Rhonda Carlin, Corporate Business Sustainability Resource, DuPont Canada. Wednesday January

9th, 2003.40DuCans June 2002 newsletter, Hhttp://www.dupont.ca/English/news/ducan/2002/2002-06-13.htmlH

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At CAP meetings, attendees have opportunity to raise any questions or concerns that they may

have about neighbouring DuPont facilities. CAP meetings also provide opportunity for

relationship building between DuPont employees and local community members.

Emergency Assistance Plan

In recognition of the company's social, moral and legal responsibilities with respect to dangerous

goods and other materials handled, DuPont Canadas Emergency Assistance Plan (DEAP) has

been established to provide a uniform corporate procedure for handling emergencies involving

DuPont material through to consumption, whether it be customer, medical, product or

transportation. The goal of this plan is to provide rapid response assistance from the company to

customers, medical personnel, the general public and carriers. DuPont Canada's role in any

emergency is to advise and assist any members of these groups.41

For example, DuPont Canada has a Corporate Chemical Emergency Response Team (CERTeam)

located at its Maitland facility. The CERTeam has been fully equipped and trained to handletransportation emergencies involving DuPont products. This group's charter is to work in

conjunction with Business Units and be available for incidents involving DuPont materials

anywhere in Canada. The CERTeam is drawn from the Emergency Response Coordinators at

Maitland.42 The basis for these Emergency Assistance Plans is to ensure that DuPont Canada

employees and the local communities in which it operates are protected.

Business benefits from engaging stakeholders

DuPont Canada believes there are significant business benefits for developing and maintaining

effective stakeholder engagement programs. Being open and transparent, engaging stakeholders in

meaningful dialogue, and investing in local communities all ensure that DuPont will have a license

to operate in the future. The company invests a great deal of time and money to foster effective

two-way communication mechanisms that help it earn the trust of its communities. The company

believes that proactive work will set it apart from competitors and ensure its success in the future.

Practising sustainability simply makes good business sense.

Challenges to engaging stakeholders

According to Jennifer Hooper, DuPont Canadas Director of Corporate Safety, Health &

Environment, there are a number of general challenges the company encounters in its work with

communities and stakeholder engagement. One is the current challenging business climate one

that sometimes promotes short-term decision-making based primarily on the economic bottom

line. DuPonts community programs including the Social Innovation Enterprise, the DuPont

Advisory Council and the Community Advisory Panels, are all long-term programs that require a


th, 2002.


th, 2002.

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longer-term, strategic vision to realize their benefits. It is sometimes necessary to defend their

existence in the traditional short-term language of the markets. The company is also learning

about balancing competitive risks versus the need for more transparency. Once a company

discloses a little information, stakeholders tend to want more. This is a delicate balance that will

continually need to be evaluated on a case-by-case basis.

5.2 Sustainable Growth Reporting

DuPont Canada began publishing its Sustainable Growth Progress Reports in 1999. The report

contains the companys values and commitments, its sustainable growth goals and progress made

towards those goals. The report does not follow the Global Reporting Initiatives (GRI)

Sustainability Reporting Guidelinesdirectly but it does incorporate many of its requirements.

As is the case with many other companies who produce sustainability reports, the original

purpose for publishing its Sustainable Growth Report was to increase the companys transparency

with its stakeholders. What DuPont Canada does differently, however, is it does not write itspecifically to suit a governmental and non-governmental organization audience like many

companies do. An additional goal of the report is to generate business interest along the

companys value chain. The report is therefore written in business language that appeals to senior

business leaders along the value chain as well as other stakeholders. Ms. Hooper indicated that it

has been a challenge to produce a report that speaks to all stakeholders and this is something the

company intends to improve upon in each subsequent report. DuPont Canadas business case

approach to corporate sustainability reporting has been highlighted as quite unique among

sustainability reports. DuPont Canada has received very positive feedback on its reporting style

and recently secured two consulting opportunities for other companies based on its Sustainable

Growth Reports.43

6 Key Drivers and Benefits for DuPont Canada

DuPont Canadas 2010 Sustainable Growth Goals bring economic, societal and environmental

pursuits together as the driving force of the companys business strategy. DuPont Canada believes

intrinsically that by serving the needs of all stakeholdersincluding employees, value chain

partners, shareholders, communities and the public at largeit can achieve outstanding financial

success and create lasting benefits for society.44 DuPont Canada identified several other benefits

and drivers from its Sustainable Growth Strategy and Programs.

DuPont Canada believes that by being open and transparent, engaging stakeholders and keeping

them informed of any health, safety and environment risks, and investing in local communities

ensures a license to operate for the company in the future.

43Personal Interview with Jennifer Hooper, Rhonda Carlin and Colleen Brydon. Dupont Canada Inc. July 18

th, 2002.


27th, 2002.

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DuPont Canada believes its Sustainable Growth work will identifynew market opportunities

and that a strong Sustainable Growth companyattracts the best employees in the workforce

and enhances a companys ability to retain good employees. Employees who are motivated and

challenged in their work, and who also feel proud of their employers contribution to society, are

more likely to stay.

Employee morale and satisfaction are also linked to innovation. Employees who are proud of the

companies they work for are likely to give more of themselves to the company in terms of energy

and commitment. By setting aggressive targets, DuPont encourages employees to think outside

the box and to work in collaboration with others to find solutions to problems. Innovation also

results from work with NGOs and other stakeholders, an area DuPont has committed to

becoming more involved in, as it recognizes the business benefits of working with other

stakeholders.

Better quality solutions is also a business benefit DuPont Canada has noticed in its work with a

broader range of stakeholders. DuPont Canada also anticipates this will be a benefit achievedthrough the work of its Advisory Council.

DuPont Canada has also realized financial benefits through waste and energy intensity

reductions. For example, a partnership between DuPont Canada and Collins and Aikman, an

important customer for DuPont Canada, resulted in the establishment of recycle loops for

fluff type waste. The project team conducted a comprehensive environmental assessment that

alerted the team to an opportunity to divert 9 tonnes of fluff waste through recycling, annually.

Costs reductions total approximately $15,000 annually.45

7 Organizational Success Factors and Challenges for DuPont Canada

DuPont Canada identified several challenges it faces and will continue to face as it proceeds with

implementation of its Sustainable Growth goals, pursuits and metrics.

Developing a Formal Business Case.It is very difficult to measure in formal, quantitative

terms, the success of its Sustainable Growth Programs. DuPont uses a radar chart to measure

Sustainable Growth in stakeholder value, tracking metrics for all its Sustainable Growth pursuits.

At this early stage, the graph reflects a qualitative assessment in some cases, however it does

provide an overall picture of work the company has undertaken to date. As additional trackingand assessment systems are put in place, progress will be measured in an increasingly quantitative

manner.

Shifting Corporate Mindset.Traditional economic business models are based on volume of

product sold which in itself is not sustainable. DuPont Canada has spent 200 years measuring

45Compliance Through Partnership: Environmental Management Systems. Taken from DuPont Canadas Studies in

Sustainability: Report 2000.

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success in terms of tons of products sold. It is understandable that DuPont Canada finds it

challenging to rethink the way the company views success. The company has committed in its

2010 pursuits to increasing the value of its offerings while reducing material intensity. This

requires a significant shift in mindset to move an entire company, primarily focused on delivering

value and volume, to a new focus on delivering value with less volume. This is already occurring

as is demonstrated by the case at Ford Canada where DuPonts business is based on the numberof cars painted, not the volume of paint sold.46

Maintaining a Long-Term View.According to Jennifer Hooper, Director, Corporate Safety,

Health & Environment for DuPont Canada, a major challenge for the company has been

advancing a longer-term vision of Sustainable Growth within the company and within the

industry. The concept of Sustainable Growth can conflict with the stock markets short-term

preoccupation with quarterly growth and financial results. It is a continuous effort to maintain the

business case for a long-term commitment to sustainability, when external markets are creating

pressures for short-term results. CEO commitment has therefore been crucial for advancing the

case for sustainability.

Developing Accountabilities for CSR. DuPont Canada has had past experience integrating its

Environmental Excellence pursuits and metrics into existing business processes and knows that

incorporating the new 2010 Sustainable Growth pursuits and metrics will be very challenging.

Work is currently underway to integrate the 2010 pursuits and metrics into core business practices

/ performance reviews etc. and to develop accountability measures for senior executives.

Measuring the success of societal aspects of its Sustainable Growth program is much more

qualitative at this point, but DuPont Canada is working to develop quantitative as well as

qualitative measures. For example, the percentage of positions in DuPont Canada with triple

bottom line accountability will be one of the measures of success in achieving the 2010

Sustainable Growth goals.47

Learning to Collaborate With the Value Chain.The aggressive environmental targets the

company set in 1990 were primarily internal and specific to manufacturing. The new goals and

pursuits set out for 2010 are more holistic and require the participation of the companys entire

value chain in order to be successful.

Management Style.Successful integration of Sustainable Growth into corporate culture is

supported by the management style at DuPont. Employees are moved through several different

roles before they are eligible for management positions. It is a critical part of the career

development program at DuPont to ensure that employees are exposed to, and made accountable

for, more than one role in the business before they become senior managers. The term holistic

business person is an accepted and well-used term inside DuPont, another unique characteristic

of the company. Also many business managers attend business schools for higher education that

46Taken from DuPont Canadas 2001 Sustainable Growth Report: Creating Value and Doing Good. Page 4.

47Taken from DuPont Canadas 2001 Sustainable Growth Report: Creating Value and Doing Good. Page 6.

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have built in some elements of sustainability into the curriculum. This helps to increase awareness

of CSR and Sustainable Growth business issues.

8 Role of Government

Ideas and Suggestions from DuPont Canada

DuPont Canada identified several potential roles that the Canadian government could play to

assist and support companies with the implementation of Sustainable Growth/CSR.

DuPont Canada feels that government could provide some assistance in clarifying the various,

and often overlapping, terms for corporate responsibility. There are several terms being used on

the international stagecorporate social responsibility, social responsibility, sustainable

development, sustainability, etcalmost interchangeably. DuPont has elected to use Sustainable

Growth to describe activities in the area, but still refers to these broader terms when

communicating its Sustainable Growth strategy to others.

As well, to support the implementation of CSR practices within companies, there is opportunity

for the federal government to recognize those companies that demonstrate high levels of

performance and consistently go beyond compliance. DuPont Canada believes that positive

feedback and recognition go a long way in terms of employee morale, and it also creates an

environment where employees want to continue looking for ways to be better corporate citizens.

Along the same lines as recognition, providing incentives for companies to advance CSR is also a

very important role for government. For example, DuPont Canada raised the question of whether

there are any incentives for companies (large or SME) to develop a resource-intensiveenvironment or sustainability-reporting program? DuPont Canada recommends that the

government consider incentives before moving ahead and legislating mandatory reporting.

If government is going to develop regulations, getting those regulations right is critical. DuPont

Canada agrees that regulations may be needed in some cases, however enforcement is critical to

ensure competition for all.

More specifically, DuPont Canada feels that the federal government could play a role in

streamlining legislative requirements for innovation in Canada (e.g., New Substance Notification,

CEPA). For example, if companies could use global risk management data companies would berelieved of having to conduct their own studies for every substance in Canada and would lead to

greater efficiency.

DuPont Canada has attended many CSR events in the past hosted by the Conference Board of

Canada and other industry associations that are attended by the same group of 25 or so leading

companies. DuPont Canada feels it is important to start spreading good news about what other

companies, especially SMEs, are doing to advance their CSR strategies and programs. This is

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another area where government could support the widespread adoption of CSR. The federal

government could help disseminate good news stories from SMEs or provide assistance to those

that are doing very little or perhaps nothing. SMEs may lack the resources, knowledge and

capacity to get involved in CSR programs. The government could help by providing assistance in

this manner and could begin by specifically asking SMEs what would help them advance CSR,

and then work to support them in those ways.

Finally, DuPont Canada believes that chemical and petrochemical companies are ahead of other

companies in terms of CSR due to Responsible Care membership. The federal government might

want to focus on bringing other sectors that may be behind in the learning curve up to speed with

CSR.

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