Human Capital and Occupational Health & Safety: How do you assess ESG materiality around your most valuable asset?

Transcription

1 Human Capital and Occupational Health & Safety: How do you assess ESG materiality around your most valuable asset? Kathy A. Seabrook, Chair of the Board, Center for Safety and Health Sustainability Darryl C. Hill, Vice President Global Health and Safety, Johnson Controls Inc

2 How to use Webex

3 Kathy A. Seabrook, Chair of the Board, Center for Safety and Health Sustainability Darryl C. Hill, Vice President Global Health and Safety, Johnson Controls Inc. The Human Capital - OHS Connection: How do you assess ESG materiality around your most valuable asset? 2011 Global Solutions, Inc.

4 Sustainability Materiality Human Capital - OHS Connection

5 Change is being Driven by the Market Global Solutions, Inc.

6 74% believe that Long Term Success means measuring and reporting total impact of their companies activities social, environmental, fiscal and economic dimensions (non financial) Source: PWC 2014 CEO survey 1322 CEOs /77 counties

7 Customers, Governments, Reputation Risk the Investment Community Global Solutions, Inc.

8 2012 Global Solutions, Inc.

9 2012 Global Solutions, Inc. and accountability

10 Countries with Social Reporting Regulations Spain France UK

11 -ESG Reporting Standard Broad Performance Metrics and KPIs 2011 Global Solutions, Inc.

12 2013 Sustainability Reporting Instruments/ Countries (2016 *) * Carrots & Sticks GRI & KPMG

13 Materiality Firms with strong performance on material topics outperform firms with poor performance on material topics, consistent with material investments being shareholder value-enhancing. - March 2015 Corporate Sustainability: First Evidence on Materiality

14 Human Capital

15 Human Capital Sustainability (Social/Labor Aspects) Materiality Workplace Safety & Health (OHS - Opportunities)

16 Key Materiality Sustainability Issues By Industry Sector SASB Materiality Maps - 34 / 83 Sectors (likely) - OSH Material Issue

17 Performance Human Capital & Workplace Safety and Health (OHS)

18 2016 Global Solutions, Inc.

19 Our Sponsoring Organizations Global Solutions, Inc.

20 OH&S Professionals Countries

21 Commitment to advancing safe, healthy and sustainable workplaces around the world Global Solutions, Inc.

22 How do you assess ESG materiality around your most valuable asset? 2011 Global Solutions, Inc.

23 Telling the Story Sustainability, Human Capital, Materiality & OHS Connection (Dec 2015) 2016 Global Solutions, Inc.

24 Telling the Story Sustainability, Human Capital, Materiality & OHS Connection (Dec 2015) identify, measure, manage and report on an Orgs most material ESG issues Global Solutions, Inc.

25 Telling the Story Sustainability, Human Capital, Materiality & OHS Connection (Dec 2015) Transformational Change identify, measure, manage and report on an Orgs most material ESG issues Global Solutions, Inc.

26 Trends to Watch Global Solutions, Inc.

27 2011 Global Source: Solutions, Inc.

28 OHS - Material

29 Supply Chain Accountability

30 C- Suite & Board Room

31 POLL Has employee Safety and Health been identified as material ESG issue in your organization? Yes/ No

32 Value Creation

33 Greener Chemistry Alternatives Reducing Chemical Hazards

34 Greener & Safer Global Solutions, Inc.

35 Good for 2013 Global Solutions, Inc. Employees, Customers and Communitites

36 Lost-time injury and illness frequency rate, lost-time injury and illness severity rate, and number of fatalities (All employees/workers 5 year period). Lost-time injury and illness frequency rate, lost-time injury and illness severity rate, and number of fatalities (All contractors 5 year period) Global Solutions, Inc.

37 % of owned or leased work locations that have implemented a Safety and Health management system that meets recognized standards 2016 Global Solutions, Inc.

38 Management Systems PROACTIVELY Keep Organizations running smoothly in the face of RISK...

39 Establish, implement, maintain and improve OH&S Performance

40 Level of Assurance OH&S Risks & Opportunities are Identified, Assessed & Managed

41 Ultimate Goal: Reducing Injuries, Ill Health & Fatalities 41

42 Mandatory Safety and Health Management systems 26 Countries UK

43 ESG Reporting on Safety/Health Management Systems

44 % of owned or leased manufacturing, production, or warehousing facilities that have had their occupational safety health management systems audited. % of direct/ or first tier suppliers facilities that were audited for compliance with safety and health standards Global Solutions, Inc.

45 Value Creation 2011 Global Solutions, Inc.

46 Darryl C. Hill, Vice President Global Health and Safety, Johnson Controls Inc. The Human Capital - OHS Connection: How do you assess ESG materiality around your most valuable asset? 2011 Global Solutions, Inc.

47 We do what we say we will do As we continue to align environmental, social and governance responsibilities with economic priorities, Johnson Controls sees positive results for our business, our communities and our planet. We re proud to be included on prestigious sustainability indices. Dow Jones Sustainability World Index Dow Jones Sustainability North America Index FTSE4Good Index Series Calvert Social Index MSCI indices including MSCI Global Climate Index and MSCI KLD 400 Social Index, plus 27 other MSCI indices United Nations Global Compact s Global Compact 100 Index Maplecroft Climate Innovation Indexes Maplecroft CII Benchmark Index, #3 in 2012 Includes 346 of the largest U.S. companies engaged in public climate-related programs Maplecroft CII Leaders Index, #3 in 2012 Includes 100 topperforming companies from the Maplecroft CII Benchmark Index STOXX Global ESG Leaders indices NASDAQ OMX CRD Global Sustainability 50 Index 47 Johnson Controls, Inc. PUBLIC

48 Goldman Sachs study shows that investors could have increased returns 25% to 38% over past 4 years had they integrated workplace safety and health measures into their strategy. Source: Were, 2007; Averill, 2011

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52 GLOBAL GROWTH Ethical Leadership is viewed as a top priority by our key stakeholders. MATERIALITY MATRIX SOURCE: JCI Materiality Risk Assessment Johnson Controls, Inc. Internal Use Only

53 53 Johnson Controls, Inc. Global Manufacturing & Operations Council

54 JCMS foundations 54 Johnson Controls, Inc.

55 OHSAS certification benefits Reduced incident and accident rates (42% TRIR decrease over 3 years*) Inspection waiver in some states if certified Better control of OH&S risks Decrease in overall costs of accidents (25% reduction in accident costs over 3 years*) Decrease in insurance premiums (18% reduction in workers comp costs*) Improved levels of compliance to health and safety legislation Reduced likelihood of fines and prosecutions Improved reputation and stakeholder satisfaction OHSAS is Level 3 requirement; 20K registrar cost and avg. payback in 2-3 months* * EHSIS vendor client companies (2016) 55 Johnson Controls, Inc. Global Manufacturing & Operations Council

56 56 Johnson Controls, Inc. Global Manufacturing & Operations Council

57 ? Questions Kathy A. Seabrook, Chair of the Board, Center for Safety and Health Sustainability Darryl C. Hill, Vice President Global Health and Safety, Johnson Controls Inc. The Human Capital - OHS Connection: How do you assess ESG materiality around your most valuable asset? 2011 Global Solutions, Inc.