WEBVTT Kind: captions; Language: fi 1 00:00:00.550 --> 00:00:04.950 In this video I'm going to focus on the tools and practises that 2 00:00:04.950 --> 00:00:10.910 companies can use in their sustainability work. 3 00:00:10.910 --> 00:00:16.850 I will start by explaining that what are the tools and practices. And 4 00:00:16.850 --> 00:00:21.070 in these slides I have a couple of examples of tools. 5 00:00:21.070 --> 00:00:27.050 Some of those might even be familiar to you already. 6 00:00:27.050 --> 00:00:30.730 So basically tools and practices are such that they help 7 00:00:30.730 --> 00:00:34.550 companies to manage the sustainability issues. 8 00:00:34.550 --> 00:00:39.070 They either help the companies to understand that what 9 00:00:39.070 --> 00:00:44.590 are the significant environmental or social impacts. 10 00:00:44.590 --> 00:00:52.790 Or then they will help companies to find ways to reduce these impacts. 11 00:00:52.790 --> 00:00:59.800 Significant environmental and social impacts are typically such that they are the biggest 12 00:00:59.800 --> 00:01:05.840 environmental or social impacts that the companies are causing, or then they are such that 13 00:01:05.840 --> 00:01:12.880 companies' stakeholders are especially interested in. 14 00:01:12.880 --> 00:01:18.320 And with different tools or different set of tools and practices, companies 15 00:01:18.320 --> 00:01:24.560 are then able to manage the sustainability issues. 16 00:01:24.560 --> 00:01:28.090 Basically we are talking about the continuous improvement, that they are 17 00:01:28.090 --> 00:01:34.740 always able to find ways to improve in these issues. 18 00:01:34.740 --> 00:01:41.060 I said I have some examples of the different methods here. 19 00:01:41.060 --> 00:01:45.460 Other courses that we are offering as Corporate Environmental Management 20 00:01:45.460 --> 00:01:49.600 faculty, they will focus on these different tools. 21 00:01:49.600 --> 00:01:55.190 I'm going to talk to you about two of these tools later on, 22 00:01:55.190 --> 00:01:57.460 but I will just say a couple of examples, 23 00:01:57.460 --> 00:02:05.170 for example, on the eco labels. Those are such that companies can have in their products if the 24 00:02:05.170 --> 00:02:11.300 products are performing better than the other products in that area. So then 25 00:02:11.300 --> 00:02:16.890 my challenge to you is that next time when you go to grocery shop, for example, 26 00:02:16.890 --> 00:02:23.090 take a look at the packaging of the food items or whatever you are buying in the 27 00:02:23.090 --> 00:02:29.920 shop and take a look if it has an eco label or not. 28 00:02:29.920 --> 00:02:34.620 Carbon footprint was something that I mentioned in the 29 00:02:34.620 --> 00:02:39.400 very first video in this course. 30 00:02:39.400 --> 00:02:44.400 So it's a tool that many of the companies are using at the moment. 31 00:02:44.400 --> 00:02:48.800 And also one of the tasks in this course while you are completing 32 00:02:48.800 --> 00:02:56.440 this course, is to calculate your own carbon footprint. 33 00:02:56.440 --> 00:02:59.890 But in this slide, I'm going to give you an example of 34 00:02:59.890 --> 00:03:03.060 the sustainability management systems. 35 00:03:03.060 --> 00:03:08.430 That's a typical internal tool that companies are using. And then I'm going 36 00:03:08.430 --> 00:03:12.990 to give you examples of the sustainability reporting. 37 00:03:12.990 --> 00:03:18.150 That is kind of an in-between tool that, of course companies use 38 00:03:18.150 --> 00:03:22.050 the internal data and knowledge to produce it. 39 00:03:22.050 --> 00:03:26.610 But still often the target group of sustainability report 40 00:03:26.610 --> 00:03:32.610 are the external stakeholders of the company. 41 00:03:32.610 --> 00:03:38.330 But let's start with the management systems for sustainability. 42 00:03:38.330 --> 00:03:44.530 In this slide there is kind of an overview of what is a management system. 43 00:03:44.530 --> 00:03:48.730 If you have background in management, for example, you might 44 00:03:48.730 --> 00:03:51.690 already know about the quality management systems. 45 00:03:51.690 --> 00:03:56.690 There is a similar system for environmental issues as well. 46 00:03:56.690 --> 00:04:03.470 But management system is typically a system for managing the environmental 47 00:04:03.470 --> 00:04:07.750 and/or social impacts that the companies is causing. 48 00:04:07.750 --> 00:04:13.010 The system helps a company to identify what are the most significant 49 00:04:13.010 --> 00:04:17.990 environmental and/or social impacts and then helps the company to 50 00:04:17.990 --> 00:04:23.290 find ways to reduce those impacts. 51 00:04:23.290 --> 00:04:27.320 As said, this is a very typical example of an internal tool. 52 00:04:27.320 --> 00:04:32.960 So it helps companies to improve their own operations. 53 00:04:32.960 --> 00:04:36.720 It can also offer an external verification. 54 00:04:36.720 --> 00:04:42.260 So there are systems that the company can certify and really get a certificate out of it, 55 00:04:42.260 --> 00:04:47.840 out of the process, and then they can show that to external stakeholders, 56 00:04:47.840 --> 00:04:52.860 typically business partners, to say that we have focused 57 00:04:52.860 --> 00:04:58.080 on environmental or social issues. And in that way it 58 00:04:58.080 --> 00:05:03.710 can be an advantage in the stakeholder relationships, or in some 59 00:05:03.710 --> 00:05:08.440 cases it's even a demand from the stakeholders. 60 00:05:08.440 --> 00:05:16.330 So typically it is the larger companies that will have a management system. 61 00:05:16.330 --> 00:05:22.050 And, therefore, there are these bigger companies that are nowadays starting 62 00:05:22.050 --> 00:05:29.090 to ask for the management system also from their own suppliers. And this 63 00:05:29.090 --> 00:05:32.090 is completely voluntary action for the companies. 64 00:05:32.090 --> 00:05:36.670 So there isn't any law that says that you need to have a management system. 65 00:05:36.670 --> 00:05:40.250 But then again, the requirement of 66 00:05:40.250 --> 00:05:46.240 a system might come from the business partners. 67 00:05:46.240 --> 00:05:52.560 And in here I have just listed examples of these management systems. 68 00:05:52.560 --> 00:05:57.500 We have a whole course that will focus on managing a green organisation 69 00:05:57.500 --> 00:06:00.730 if you are interested to know more. 70 00:06:00.730 --> 00:06:08.530 There are two main environmental management systems. ISO 14001: 71 00:06:08.530 --> 00:06:13.080 This is very similar to ISO's quality management systems. 72 00:06:13.080 --> 00:06:17.830 If you know that then you have an idea how to build an environmental management system 73 00:06:17.830 --> 00:06:22.710 as well. And then the EMAS system, which comes from the EU. 74 00:06:22.710 --> 00:06:27.530 So it's basically an European based management system, but then 75 00:06:27.530 --> 00:06:31.270 again European companies can also certify 76 00:06:31.270 --> 00:06:35.930 their operations outside Europe based on this. 77 00:06:35.930 --> 00:06:39.340 And then there are some that focus 78 00:06:39.340 --> 00:06:45.890 on the sustainability or a certain topic inside sustainability. 79 00:06:45.890 --> 00:06:50.640 There is ISO guidelines on sustainability. 80 00:06:50.640 --> 00:06:56.260 This isn't really a certifiable system, but still ISO wanted 81 00:06:56.260 --> 00:07:02.340 to produce their own guidelines on sustainability. 82 00:07:02.340 --> 00:07:11.460 Then there is the AA1000 that focuses on stakeholder engagement, stakeholder dialogue. 83 00:07:11.460 --> 00:07:19.620 And then the SA8000 that focuses on decent workplaces. So 84 00:07:19.620 --> 00:07:28.990 kind of very basic health and safety issues, for example, in the workplace. 85 00:07:28.990 --> 00:07:35.650 Then my second example focuses on sustainability reporting. 86 00:07:35.650 --> 00:07:42.810 As said, it's kind of in-between tool in a way that companies need to collect and process the data, often 87 00:07:42.810 --> 00:07:49.820 inside of their own company. And then they will process the data and then publish the sustainability 88 00:07:49.820 --> 00:07:55.470 report that is quite often targeted to the external stakeholders. 89 00:07:55.470 --> 00:07:58.530 So the companies need to have a process which is called 90 00:07:58.530 --> 00:08:05.800 sustainability reporting or sustainability accounting in a company where they collect the 91 00:08:05.800 --> 00:08:14.330 data that describes their performance on economic, environmental and social impacts. 92 00:08:14.330 --> 00:08:20.090 And then the sustainability report is a kind of an end result of that process. 93 00:08:20.090 --> 00:08:26.800 Typically companies publish a report every year, if they have started to publish one. 94 00:08:26.800 --> 00:08:28.980 And 95 00:08:28.980 --> 00:08:35.180 it should cover both positive and negative impacts that the companies are causing. 96 00:08:35.180 --> 00:08:38.940 There is a bit of a tendency that companies report only on the positive 97 00:08:38.940 --> 00:08:45.720 news and on the success stories, but still they should also disclose a report 98 00:08:45.720 --> 00:08:49.920 on something that hasn't been that successful. 99 00:08:49.920 --> 00:08:55.420 Here I just have an example of the cover of sustainability report 100 00:08:55.420 --> 00:08:58.410 from Metsä Board, which is aFinnish forest 101 00:08:58.410 --> 00:09:03.920 industry company. 102 00:09:03.920 --> 00:09:10.610 Then kind of what should be inside of a sustainability report. 103 00:09:10.610 --> 00:09:16.470 Similar to the management systems also sustainability reporting is a voluntary practice 104 00:09:16.470 --> 00:09:22.510 for company. So they can choose whether or not they will report, and then they 105 00:09:22.510 --> 00:09:27.930 can also choose what they will have inside of a report. 106 00:09:27.930 --> 00:09:31.440 There are some countries that have regulation 107 00:09:31.440 --> 00:09:34.340 that's defines somewhat the content. 108 00:09:34.340 --> 00:09:39.490 Also, as I mentioned in the previous video, is that there 109 00:09:39.490 --> 00:09:43.960 is a new EU regulation on this topic. 110 00:09:43.960 --> 00:09:49.200 At the moment it isn't that strict, but EU is renewing the regulation 111 00:09:49.200 --> 00:09:53.520 and it might get stricter in the future. 112 00:09:53.520 --> 00:10:01.600 But to give you some idea is that a good report should contain both monetary and 113 00:10:01.600 --> 00:10:07.040 non-monetary information, both qualitative and quantitative information, 114 00:10:07.040 --> 00:10:15.190 so numbers. And then as said, both positive and negative information. 115 00:10:15.190 --> 00:10:20.610 At the moment the most commonly used international framework for reporting is the 116 00:10:20.610 --> 00:10:28.210 Global Reporting Initiative. And also in this slide I have an example of content 117 00:10:28.210 --> 00:10:32.370 of sustainability report and once more this is Metsä Board. 118 00:10:32.370 --> 00:10:39.690 And the reason why I chose these two pages from the report is that, I'm not sure if you 119 00:10:39.690 --> 00:10:44.170 are able to see from the video, but please take look at the slides which are 120 00:10:44.170 --> 00:10:48.520 attached to this video, is that these signs 121 00:10:48.520 --> 00:10:55.130 that the company has selected here, kind of the small squares. They are 122 00:10:55.130 --> 00:11:02.110 those sustainable development goals. So also Metsä Board has 123 00:11:02.110 --> 00:11:07.490 considered that how their operation, how their products will 124 00:11:07.490 --> 00:11:15.450 have an impact on the Sustainable Development Goals. And in Moodle you have the 125 00:11:15.450 --> 00:11:21.070 sustainability report of Kone, which is also a Finnish company. 126 00:11:21.070 --> 00:11:24.830 So take a look at also that report to give you some kind of an 127 00:11:24.830 --> 00:11:28.950 idea how companies report on sustainability issues.