Citizen act ang_csr_training

CITIZEN ACT - season 2011-2012Increasing Corporate Social Responsibility Within

Your Business Lines

CITIZEN ACT – SEASON 2011-2012

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Before starting the training programme, try to answer the following questions to determine your profile:

What are the two main values you associate with sustainable development?

How is your work life affected by sustainable development?

With which character or “hero” do you associate sustainable development?

15’

What is your sustainable development “profile”?


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The objectives of this training programme are to:

Consolidate your knowledge of sustainable development and Corporate Social Responsibility

Get to know Societe Generale’s CSR approach

Identify courses of action to implement


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Summary

Sequences:

1. Validate and share one’s understanding of sustainable development:

The sustainable development tribunal

2. Define the main CSR issues for a financial establishment (including corporate and investment banking, retail banking, asset management, investment management and services, specialised financial services):

The “sustainable development” bank


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Sustainable development, facts and assessment …

Sequence 1

Validate and share one’s understanding of sustainable development: The sustainable development tribunal

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Sustainable development: the stakes

The challenges of sustainable development are twofold:

• They are a response to climate change.

We will see that degrowth is not the only solution to climate change.

• They are a response to social inequality.We will see that one of the challenges of sustainable development is also to fight social inequality as companies develop.

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1. Responding to climate change

Do we need global degrowth? No, just economic growth in developing countries and global demographic growth.Economic growth consumes excessive energy but is necessary for social progress.To soften the phenomenon requires development to be “dematerialised”, i.e. it needs to consume less resources.IPCC objectives: halve global greenhouse gas emissions compared to 1990 levelsFrench objectives: Factor 4, i.e. cut greenhouse gas emissions by -75% (divide them by 4) by 2050, or -3% a year. In the USA, the target should be Factor 10.Climate change is upon us, and society needs to adapt.

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Energy efficiency: using high-performance technologies

Reduction in Greenhouse Gas (GHG) emissions: solutions do

exist

Positive Energy buildings

LED lightingFactor 10

CogenerationFactor 5

Wood burners

Electric cars

Soft mobility

Heating: -1°C -7%

GHGRecycled paper: Factor 2

Moderation: inhabitants’ lifestyle

Renewable energy

1. Responding to climate change

All of these solutions have to be implemented; none of them are sufficient on their own.

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The solutions?• Help developing counties with their infrastructure projects• Agricultural policies• Access to financial products would provide leverage for activity (microfinance)• Better global and national governance• Development policies (infrastructures, R&D, training, insertion, etc.)

Economic development has,

on average, improved social

conditions.

China and India are catching up with the most developed countries. Sub-Saharan Africa has not benefited from global growth (32% of the population are undernourished)In some developed countries, inequalities are increasing (USA: between 2000 and 2007, the number of people living in poverty increased from 31 million to 38 million)

Worldwide average life expectancy

2. Social inequality

Map showing UN member nations’ life expectancy at birth in 2006

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Corporate Social Responsibility

What are the main components of Corporate and Social Responsibility?

• Corporate commitment

A company’s commitment and involvement should enable it to obtain sustainable profitability by paying more attention to the impacts of its activity

• Governance

A company has to meet the demands of its stakeholders

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• CSR is not incompatible with profitability, on the contrary:

Energy savings Customer satisfaction Staff motivation and health Innovation with suppliers Job creation

• Ignoring CSR means running therisk of losing everything!

• It’s not a company’s job to “save the planet”

• However, companies do have an impact on our planet• clients, employees, suppliers, local

inhabitants, etc.• resources, ecosystems and biodiversity

• Corporate Social Responsibility is about striving to reduce the negative impacts and develop the positive contributions

examplesRisks &

Opportunities

approach

1. Corporate involvement

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Notion of the company’s wider responsibility

Investors profitability, risk control

Environment Reduction in impacts, preservation of natural resources

Suppliers Responsible sourcing

Clients, consumersInformation, security, quality

Staff, unionsEmployment, diversity, security

Communities development, dialogue, security

The company’s stakeholders express certain expectations

For the company, these are Risks and

Opportunities

• Image, reputation• Innovation, anticipation• Competitiveness, costs• Loyalty, appeal• Team commitment• Territorial integration

Kofi Annan said that companies aren’t being asked to change their business, just to carry out their business in a different way

Government & local

authorities compliance,

reporting

1. Corporate involvement

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Economic efficiency

Social equalityRespecting the environment

Fair

Liveable

Viable

Sustainable

Instigating a CSR approach means seeking to take environmental, social

and economic aspects into accountTo take these aspects into account, the company has to implement management practices that focus on stakeholders:

Identification of stakeholders Listening Dialogue Cooperation Information Assessment

The company retains the responsibility of its arbitrage

clients

employeessuppliers

local inhabitantscharity associations unions

schools & collegesmedia

2. Good Governance

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CSR issues specific to banking

The CSR issues specific to a bank are twofold:

• They firstly concern the responsibility of the financial sector.

The financial crisis has caused banking institutions to react in terms of CSR.

• CSR is also present in all banking business lines.

The bank’s corporate social responsibility is not limited to its own premises and staff

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• Put ethics back at the very heart of business• More transparent sales practices vis-à-vis clients

(subprimes)• Risk management, taking the long term into account,

which are at the very heart of a bank’s responsibility

• Give banks back their pivotal role in the way the economy operates, re-legitimise their role• Equal treatment of stakeholders: make financial products

accessible to all• Support for business development

• Promote the development of responsible practices• Investments in “green” products, innovative products• Development of new markets• Support for more solidarity-based economic models

• Restore the bank’s image

1. The opportunities offered by the crisis

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A bank’s responsibility is not limited to its direct impacts…

… it is a factor of market confidence

… it includes the impact of products (financing, investments, etc.)

… and access to products for people in difficulty

Domains internal to the company• Social policy (job management, diversity, etc.)• Environmental policy (equipment, energy, transport, etc.)

Establish business ethics• Compliance • Risk management• Controls

Incorporate social and environmental criteria into banking business lines

• Financing policy• Investment policy, SRI• Products that promote virtuous behaviour

Contribute to strengthening social ties

• Financial inclusion• Solidarity-based products

2. The bank’s responsibility

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Sequence 2

Define the main CSR issues for a financial establishment:The “sustainable development” bank

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Building the “sustainable development” bank

For the 4 following issues:• Incorporate social and environmental criteria into banking business lines

• Establish business ethics

• Contribute to strengthening social ties

• Domains internal to the company:

Develop human capital Control the environmental impact for its own behalf.

Imagine 2 innovative practices per issue

Once you have created your “ideal bank”, draw up your promotional document by answering the following questions:• Why make these choices?

• In what way is this achievable? 45’

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Domains internal to the company• Social policy• Environmental policy

Establish business ethics• Ethics • Risk management• Controls


• Investment policy, SRI• Financing policy• Products that promote virtuous

behaviour


• Financial inclusion• Solidarity-based products

Consumption, sourcing, waste, transport, CO2

Employment, equal opportunities, insertion, stress, dialogue, health, etc.

Indirect impacts, sectorial policies

“Responsible” products and services

CSR criteria, etc.

Microfinance, financial inclusion

Sharing products, communities

Corruption, image, corporate governance

Commitment, stakeholders, fraud, risks,

Ethics, transparency, exemplarity, money laundering

The four challenges of the ideal “sustainable development” bank

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The Group’s CSR strategy

Societe Generale group best practices

Dialogue with stakeholders

Dynamic staff

management

Taking CSR issues into account in our businesses Optimising the impact of

business on the environment and on society

Values / EthicsHistory / Culture

Corp

orat

e go

vern

ance

Inte

rnal

con

trol a

nd

risks

Com

plia

nce

setu

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Domains internal to the company

• Social policy

• Environmental policy

• Sourcing

Diversity, equality, disability

Staff development

Carbon Neutrality projectResponsible Paper Use project

Ethical Sourcing Programme

Some Societe Generale group practices 1/4

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Establish business ethics

• Corporate governance

• Risk management

• Professional ethics

• Internal control

Internal control and risks, audit

570 compliance officers

Code of conduct

Separation of powers between the Chairman and the CEO


A permanent surveillance setup

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• SRI

• Responsible financing

• Carbon market€1.4 bn in green investments in 2007

• Setup for the environmental assessment of project financing• Financing policies adapted to the risks inherent to certain sectors (arms, nuclear, etc.)

€13 bn invested in 2007 SRI research team

• Development of Orbeo activities• SG is a member of the European Carbon Fund


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• Financial inclusion

• Support for 32 microfinance institutions (MFIs) in 15 countries and 3 French Overseas Regions• SG is a shareholder in 2 MFIs (in Cameroon and Madagascar)

France: partnership with ADIE


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Some Societe Generale group best practices

Managing sustainable development

• An integrated CSR organisation

The Group Executive Committee defines the CSR approach’s strategic objectivesThe Sustainable Development division runs and coordinates the approachA network of around 60 contributors relays the Group’s policy and implements local actionsManagers and staff take action on a daily basis

• ToolsThe “Planethic©” sustainable development intranet: http://planethic.socgenA site devoted to CSR: www.socgen.com/rse

http://planethic.socgen/

http://www.socgen.com/rse

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The key messages

• Sustainable Development involves…• … taking Social and Environmental aspects into account• … management practices (stakeholders, long term, etc.)

• But is also…• … a source of innovation and differentiation• … an opportunity to better meet clients’ expectations• … and therefore a strategic issue

• Not a single response, but rather different perceptions and ambitions for each player, company.

• An approach that requires transversality, opening up internally and externally

• A development method• The need to steer change to anchor new practices• A long-term commitment (long and progressive approach)• A project in itself (management system, indicators, etc.)

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