Hatch - PowerPoint PPT Presentation

1 / 52
About This Presentation



Adopting an established and globally recognized policy framework A platform to share and exchange best and emerging ... Integration of environmental ... link Future ... – PowerPoint PPT presentation

Number of Views:17
Avg rating:3.0/5.0
Slides: 53
Provided by: Hatc9


Transcript and Presenter's Notes

Title: Hatch

Hatchs Approach to CSR and Lessons Learned
Presented by Dr Dila Ersenkal
  • Outline
  • Corporate Social Responsibility (CSR)
  • Global Compact (GC)
  • Hatchs Approach to CSR
  • Hatch Case Study Update on Transnet
  • Lessons Learned Recommendations

Challenges in Our World
  • Extremes of wealth (few) and poverty (many)
  • There should exist among the citizens
  • neither extreme poverty nor again excessive
  • wealth, for both are productive of great evil-
  • Plato 2500 yrs ago
  • Serious ecological degradation

How to Overcome the Challenges?
  • Incorporate points of views of different
  • Broaden the objectives of the companies to go
    beyond the economic.

What is Corporate Social Responsibility (CSR)?
"A concept whereby companies integrate social and
environmental concerns in their business
operations and in their interaction with their
stakeholders on a voluntary basis.
European Commission. 2001. Green Paper Promoting
a European framework for corporate social
What is Corporate Social Responsibility (CSR)?
  • We define CSR as business' commitment to
    contribute to sustainable economic development,
    working with employees, their families, the local
    community, and society at large to improve their
    quality of life.

World Business Council for Sustainable
What is Corporate Social Responsibility (CSR)?
  • The business contribution to sustainable
    development which has been defined as
    development that meets the needs of the present
    without compromising the ability of future
    generations to meet their own needs, and is
    generally understood as focussing on how to
    achieve the integration of economics,
    environmental, and social imperatives.

Industry Canada
Why CSR?
  • Moral obligation - to do the right thing to
    respect ethical values as well as people and the
  • Sustainability meeting the needs of the
    present without compromising the ability of
    future generations to meet their own needs.
  • License to operate the permission from
    government and people to carry on business
  • Reputation the enhancement of corporate image
    and brand value
  • Michael Porter

Business in Society
  • Ever-widening range of environmental, social and
    governance issues
  • Adopting corporate citizenship practices to
    ensure sustainability
  • Open and accurate communication on progress
  • Partnership and collaboration of stakeholders,
    society and labour
  • The role of investors and the finance community
  • Alignment with international standards

Engagement in CSR
  • Reputation enhancement opportunity
  • Market expansion opportunity
  • It helps addressing environmental
  • Senior Management requires it
  • Allows for recruitment/retention of the best and
    brightest employees

Common Pitfalls
  • Selecting an inappropriate CSR activity
  • Effective launch, ineffective implementation
  • Spreading resources too thin
  • Weak monitoring mechanism
  • Projected or perceived as a green wash or
    white wash
  • Often mistaken for a Public Relations exercise or

Responsible Corporate Behaviour
  • Voluntarily going beyond legal, regulatory, and
    conventional requirements,
  • Promoting and fostering interaction with its
    stakeholders characterized by respect,
    transparency, openness and dialogue that is to
    say sound governance
  • Integrating social, environmental and economic
    aspects into the goals of the organization.

Potential Benefits
  • Stronger financial performance and profitability
    (e.g. through eco-efficiency higher
    productivity, reduction in costs and increase in
  • Improved accountability to and assessments from
    the investment community
  • Positive engagement with government
  • Decreased vulnerability through stronger
    relationships with communities
  • Improved reputation and branding positive public
  • Enhanced employee commitment retaining staff,
    enhancing employee morale

Triple Bottom Line
  • Environmental Compatibility between the
    activities of companies and the sustainability of
  • Social Social consequences of the activities of
    companies for all the communities concerned
  • Economic Conventional financial performance, but
    also the ability to contribute to the economic
    development of the corporate operating area and

Commitment to CSR
  • Top-level involvement (CEO, Board of Directors)
  • Workplace initiatives (codes of conduct,
    corporate policies, programs, etc.)
  • Social/Environmental auditing, certification and
  • Management frameworks i.e. AA 1000, SA 8000, ISO
  • Environmentally/Socially responsible investments
  • Intergovernmental initiatives
  • Signatories to voluntary standards i.e. UN
    Global Compact
  • Reporting and Communication on Progress - i.e.
    Global Reporting Initiative (GRI), Sustainability

What is Global Compact (GC)?
  • The UN Global Compact's ten principles in the
    areas of human rights, labor, the environment and
    anti-corruption enjoy universal consensus and are
    derived from
  • The Universal Declaration of Human Rights
  • The International Labor Organization's
    Declaration on Fundamental Principles and Rights
    at Work
  • The Rio Declaration on Environment and
  • The United Nations Convention Against Corruption

UN Global Compact - HR
  • Principle1 Businesses should support and respect
    the protection of internationally proclaimed
    human rights and
  • Principle 2 make sure that they are not
    complicit in human rights abuses. 

UN Global Compact - Labor
  • Principle 3 Businesses should uphold the freedom
    of association and the effective recognition of
    the right to collective bargaining
  • Principle 4 the elimination of all forms of
    forced and compulsory labor
  • Principle 5 the effective abolition of child
    labor and
  • Principle 6 the elimination of discrimination in
    respect of employment and occupation. 

UN Global Compact - Environment
  • Principle 7 Businesses should support a
    precautionary approach to environmental
  • Principle 8 undertake initiatives to promote
    greater environmental responsibility and
  • Principle 9 encourage the development and
    diffusion of environmentally friendly

UN Global Compact Anti-Corruption
  • Principle 10 Businesses should work against
    corruption in all its forms, including extortion
    and bribery. 

Benefits of Participation in the GC
  • Adopting an established and globally recognized
    policy framework
  • A platform to share and exchange best and
    emerging practices
  • The opportunity to advance sustainability
    solutions in partnership with a range of
  • The opportunity to link business units and
    subsidiaries across the value chain with Global
    Compact Local Networks around the world 
  • Access to the UN's extensive knowledge of and
    experience with sustainability and development
  • Utilizing Global Compact management tools and
    resources, and the opportunity to engage in
    specialized workstreams in the environmental,
    social and governance realms.

Hatchs Approach to CSR
  • Examples of Hatch Initiatives
  • Environmental Services Group (ESG)
  • Project Management Framework
  • Compliance with ISO 14001 Standard
  • Sustainability Reporting

Structured on basic PLP Framework- Philosophy
behind management systems- Integration of
environmental, sustainability, and community
issues in projects
ESG Project Management Framework
Front End Loading Phases
FEL-4 Project Implementation
Start-up Operations
Business Planning
FEL - 1
FEL - 2
FEL - 3
Feasibility Study Develop Project Definition
Pre-Feasibility Study Select Most Viable Option
Conceptual/ Study Define Project Options
ESG Project Management Framework
  • Sustainability Strategy Development
  • Risks and Opportunities Management
  • Legal Compliance
  • Environmental and Social Design Criteria
  • Environmental Management
  • Social Impact Management
  • Stakeholder Engagement
  • Local Employment
  • Relocation
  • Workforce Training
  • etc.

Compliance with ISO 14001
  • Corporate Level Environmental Management Systems
  • Projects Level Environmental Management Systems

Sustainability Reporting
  • Hatch Sustainable Development Report 2010

Case Study Update on Transnet Project
  • HMG Joint Venture (comprising Hatch, Hatch, Mott
    MacDonald and Goba)
  • a 5 year contract to manage the major
    infrastructure development programme (Transnets
    Expansion Programme)
  • National Infrastructure Plan
  • Rail expansion
  • Port expansion
  • 27 projects with a combined capital value of R80

(No Transcript)
National Infrastructure Plan
  • Development of sustainable development criteria
  • High level screening studies
  • Layout options for future developments
  • Determination of the potential change in the
    economic value of ecosystems goods and services
  • Identification of new major rail corridors

Rail Routing Options
  • Screening and Routing Studies
  • Identification and planning of environmental
    permitting requirements
  • Co-ordination of environmental impact assessments

Port Developments
  • Environmental studies to plan the dredging
  • Identification of offshore disposal sites
  • Integration of Environmental Impact Assessments
    (EIA) with project design

Oreline Port Saldanha Bay
Saldanha Bay Status Quo

Saldanha Bay Future Layout
Saldanha Bay Long Term Potential
  • The oreline is a the export corridor (863 km of
    rail line) connecting the iron ore mines in the
    Northern Cape of South Africa with the Port of
    Saldanha in the Western Cape
  • Saldanha Bay is a natural deep water bay
    constructed in 1976 and the towns in its
    immediate vicinity has grown alongside its
  • The closer proximity of residential development
    and the property boom in coastal towns in South
    Africa led to more conflict between communities
    and the port as a result of dust
  • Some houses in the immediate vicinity has been
    stained with a red to pink discolouration due to
    iron ore dust fallout
  • Since 2000, the capacity of the exports have
    grown from 38 Million tons per annum and new
    mines are establishing with a view of utilising
    the link
  • Future projections are to increase export to 100
    million tons per annum (MTPA)
  • HMG were involved in conceptual studies for
    future expansions as well as execution of current
    expansion up to 60 Mtpa through various phases

Phase 1A
  • Installation of dust mitigation measures to
    reduce fallout dust and particulate matter in the
    surrounding environment
  • Management of long term air quality monitoring in
    surrounding environment in order to determine
    standards for iron ore dust fallout and to
    monitor the ports performance against increase
    in export volumes
  • Estimating and planning of compensation for
    surrounding land owners affected by iron ore dust

Phase 1B
  • Expansion of port facilities to handle 47 Mtpa
    (from 38 Mtpa) of iron ore exports
  • Reclamation of land and installation of
    infrastructure (1 new stockyard, stacker /
    reclaimers, conveyors, port buildings, etc.)
  • Engaging with local public in Environmental
    Monitoring Committee meetings providing feedback
    on Environmental and Social process including
    construction feedback and progress of assessments
  • Dredging of 7000 m3 for optimising ship loading
    and ship position
  • Drafting of monitoring protocols and supervision
    of construction and supervision of monitoring
    during dredging

Phase 1C
  • Refurbishment of existing infrastructure to
    reduce dust emissions (installation of cleaning
    slabs, condition monitoring, and chute
    improvement to reduce spillage.)
  • Improvement of operations to increase throughput
    from 47 60 Million tons per annum through
    better ship berthing and use of conveyors,
    stackers/reclaimers and reducing equipment down
  • Management of Environmental Assessment process,
    consultants and applications for licences and

Phase 2
  • Management of consultants and EIA process for
    large EIA (US 4 m) consisting of 23 specialist
  • The EIA studies investigated the impact of the
    aspects of the development proposal
  • Reclamation of gt20 ha of sea
  • Construction of new tipplers
  • Dredging of large volumes of seabed to enable
    berth positioning
  • Construction of new stockyards and associated
  • Relocation of port buildings

Dredging for berths 3 4, SL 3 4
Reclamation, Stockyards, Stacker-Reclaimers 5, 6
Tipplers 3 4
Ngqura Status Quo
Ngqura Long Term
Public Consultation
  • Public consultation as part of the EIA processes
  • Engagement of public through
  • - Transnets normal communication
  • channels
  • - Environmental Monitoring Committees

Developing a Permitting Strategy
  • Integrate EIA and permitting processes with the
    life cycle of the project
  • Cross pollination of information and ideas
    between the engineers and environmental/social

Transnet CSR
  • Directed by the Transnet Foundation
  • Focus on
  • Rural development poverty relief in regions
    within the Companys areas of operations
  • Alignment with national Government initiatives

Transnet CSR
  • Scope
  • Health
  • Examples
  • Miracle train
  • reaches 45 000 patients each year
  • Supports rural health care facilities
  • Optometry
  • Psychology
  • Dentistry
  • Health care
  • Medicines
  • United Nations Public Service Award for improving
    service delivery

Transnet CSR
Transnet CSR
  • Scope
  • Education
  • Sports
  • Containerised assistance
  • Examples
  • Sharp Minds! Get Ahead in Life Programme
  • - Maths, Science English
  • Aims to use sport as an intervention agent to
    address social problems at schools
  • Facilities constructed from shipping containers.
  • - Police office
  • - Social service centre

CSR Drivers in Developing Countries
  • Internal
  • Cultural tradition
  • Socioeconomic priorities
  • Governance gaps
  • Market access
  • etc.
  • External
  • International standardization
  • Investment incentives
  • Stakeholder activism
  • Supply chain
  • etc.

CSR Drivers in Africa
  • Cultural tradition
  • Ubuntu values-based traditional philosophy of
    African humanism
  • Political reform
  • Changes towards democracy
  • Redressing past injustices
  • Improved corporate governance
  • Black economic empowerment

Lessons Learned
  • Environment, sustainability and community issues
    are an integral part of the project management.
  • Educate the client (upfront through out the
    project) about the process and possible pitfalls
    and risks.
  • Public Participation - illiterate, no formal
    education, must inform them in a way that they
    can participate meaningfully (language, form of
    communication, training).
  • Integrate permitting processes into the project
  • Ensure technical information required from
    engineers for environmental and social
    specialists is identified early and scheduled.
  • Too much pressure on the authorities can backfire
    (if not on current project, then the next one)
  • Manage scope changes closely, both with the
    client and for its impact on the environmental
    and social studies along with the project
    schedule and cost.

Recommendations for Business Corporations
  • Recognize social, ethical and environmental
    impacts and have relevant targets
  • Systematic dialogue processes
  • Clear accountability for CSR polices and
  • Incentives to achieve social and environmental
  • Reporting on the companys social and
    environmental performance
  • Internal and external auditing processes that
    build the credibility and effectiveness of CSR
    processes and reporting

  • Thank you
Write a Comment
User Comments (0)
About PowerShow.com