Sustainability Reporting: It's all about Trust

What's a sustainability report worth if it doesn't contribute to building and maintaining trust? (Hint: nothing).

As I read many many many sustainability reports, I am confronted with platitudes, PR-speak and declarations of commitment which are completely divorced from the results that we see in the world, and the information that is provided in the very same reports. We are committed to advancing women. But women are not advancing. We are committed to environmental stewardship. But carbon emissions are increasing. We are committed to human rights. But our supply chain audits show that people are being abused. We are committed to transparency. But our communications contain everything but the stuff that people really want to know. We have followed the GRI Framework. But the fully reported indicators are nowhere to be found in the narrative or the multitude of other irrelevant numbers. The degree of credibility and trustworthiness of a large selection of sustainability reports is questionable, and it's up to more of us to take more of an interest and help more companies be more credible and drive more trust to create a more sustainable future.

To balance things up, however, I read some reports which do cause me to believe that a company is authentic, genuine in its sustainability efforts and reporting, and yes, by and large, trustworthy. Generally speaking, though, it is only after several annual sustainability reports that my trust is reinforced and becomes a basis for a change in my attitude toward a particular company. Many companies can deliver a first sustainability report. It's the consistent, year after year, reports, that demonstrate, first and foremost, advances in sustainability performance, and then transparent and accountable disclosure, that really create a firm basis for trust. This is the kind of trust we seek to have in corporations that impact our lives.  

Trust is at the core of the mission of Barbara Kimmel, who has invested enormous resources and built an entire network to advance the kind of trust we all seek, through the organization she founded: Trust Across America - Trust Around the World. Barbara Kimmel is an award-winning communications executive and former consultant to McKinsey who has run her own firm, Next Decade, Inc., a firm that has been unraveling and simplifying complex subjects for over twenty years. During this time she has published award-winning reference books; created media campaigns; publicized books, authors and businesses; and consulted to start-ups on building marketing and communications programs. In 2012 Barbara was named one of 25 Women Who are Changing the World by Good Business International.

Trust Across America - Trust Around the World has been publishing lists of trustworthy companies  and individuals who advance trust for some years. I was honored to be included in previous lists, and no less honored to be awarded a fabulous certificate as recognition of my inclusion in the 2014 list:

TOP 100 THOUGHT LEADERS IN TRUSTWORTHY BUSINESS 2014 

And just so you know what a set of brilliant other individuals whose company I am humbled to be in, take a look at this:

You can read about all these trustworthy business leaders on the Trust Across America website here. 

And while we are at it, if you didn't download the poster of 2014 weekly quotes about trust, for daily reminder and inspiration, you can do so here:

One more thing. Barbara Kimmel has edited a truly worth-reading book, all about trust, full of insights and advice with contributions from several trustworthy experts. The book, Trust, Inc., was published at the end of last year, and deserves to be at the top of the reading list for every corporate CEO and executive in any company anywhere. Check it out on Amazon.com. 

I'll be writing a detailed review of Trust, Inc. on my CSR-Books blog sometime in the near future. 

So, back to sustainability reports... you have an opportunity to vote for the sustainability reports you believe deliver the most trustworthy accounts  of their sustainable business performance in the current CRRA '14 online reporting awards (see my last post). 

More than this, you have an opportunity, every time you are working on a sustainability report for your company, to consider the ways in which your reporting builds trust. For example, I am pleased to acknowledge the recent honor bestowed on my client, Novus International, by NAMA in its annual awards. In addition to an award for the best brand film, Novus received a "Merit award in the category of Company Publications – Annual Reports for the annual Sustainability Report. The Sustainability Report provides detailed information and examples of how the company works hand-in-hand with its stakeholders and network of business partners to improve and advance sustainability efforts." Novus International is a privately-owned company that has been reporting anually for five years on its sustainability performance. Recognition of this kind is an example of how consistent reporting contributes to building trust.

For report readers and users, you have an opportunity to engage with reporting companies to help them understand how their reports stack up on the trust continuum. Peter Firestein, in Trust, Inc. writes: "To earn trust, you must trust."  Companies that publish sustainability reports are also placing their trust in us, their stakeholders, that we will share a certain responsibility in advancing sustainability. This means telling them when we think they have got it wrong... or right. 

elaine cohen, CSR consultant, winning (CRRA'12) Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me at www.twitter.com/elainecohen   or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Sustainability with Passion

The Novus International 2012 Sustainability Report, the fifth annual report of this billion $ privately-owned company was published recently online. 

 

Novus International, Inc. is a provider of health and nutrition solutions for livestock, poultry, pets and people, headquartered in St. Charles, Missouri, U.S.A., employing more than 800 people in over 50 countries and serving more than 3,000 customers worldwide in over 100 countries. Novus operates facilities including corporate offices, research and development laboratories and manufacturing operations, as well as smaller offices with field staff in most local markets. Working from a strong base of scientific understanding and technological innovation, Novus has brought more than 100 new products to market over the past decade, contributing consistently to sustainable animal agriculture production and global food security while growing revenues and global presence. The Novus pledge is a Triple S Bottom Line – Solutions, Service and Sustainability.

 

I am particularly happy to blog about Novus, because (here it comes... disclosure >>>) Novus has been my client for some years now and I have been involved in developing and writing the 2012 report, as well as prior reports for 2011 and 2010. In preparation for the report, I interviewed around 50 Novus executives (including the CEO who is directly involved and passionate about Novus's sustainability journey) and many staff all over the world, and some external stakeholders, and collected data from over 10 manufacturing, offices and research sites. The thing that always impresses me each year about working with Novus is the absolute clarity that all the people in the organization have about their company's mission and purpose, and the passion with which they talk about their role in advancing the mission. When I asked Thad Simons, the President and CEO of Novus, about his major achievements as CEO over the past few years, without hesitation, he talked about creating an organizational culture that supports the sustainability mission - "building Novus with a sense of purpose and passion and a service culture". A CEO who leads a sustainable culture is a CEO who creates a sustainable business. Novus has grown year on year and makes a significant contribution to advancing sustainable food and improving food security in many ways. This approach is paying off!

 

The highlights of the Novus 2012 Sustainability report are to be found in the approach to reporting as well as in the data and information presented. For the first time, Novus includes a description of the organization's value chain, which shows where and how Novus generates triple bottom line impacts. Also for the first time, each section of this report is presented personally by the managers and staff who lead the organization. In each section, a Novus person tells her or his story, in her or his own words. For example, the Human Resources VP and Director talk about how they are advancing this prized organizational culture, and different managers talk about their experience in nurturing partnerships to advance sustainable solutions, while EHS Managers talk about sustainable design of offices and working spaces (Novus has a LEED Platinum certified HQ which has won several awards). The insights shared by Novus people  - the narrative is what they actually said,  not professionally copy-written texts  - are what makes up the Novus story: information and data combined with the personal contribution, leadership and drive of all the individuals. Supplementing the written narrative are several short videos, prepared specially for the report, which give you, report-users and stakeholders, a chance to see the faces behind the names and experience the passion beyond the written word. 

 

At GRI B level, GRI-checked Sustainability Report, Novus is not short on transparency either, and this report includes evidence of good performance. For example, energy consumption in production operations reduced by 5.7% in 2012, and safety performance continues to be well above industry averages with an injury rate of 0.48 per 100 employees (compared to a rate of 3.8 in all sectors in the U.S.).

One of the highlights in helping prepare the report for me is the Novus employee wellness program - see insights from Judith Thelwell who manages the program. For years, Novus has been demonstrating leading practice with one of the most comprehensive and highly engaging employee wellness programs around, that offers practical benefits for employees, and financial benefits for both employees and the company. This is a vibrant program which enables employees to engage in health and fitness related activities and earn benefits for doing so, beyond the personal benefit to their own health. In my discussions, I chatted with Andy Critchell, who works in IT Systems at Novus, (read his insights, too, in the same section), and his story was very moving. Diagnosed with diabetes, Andy had to make some serious life changes. The accessibility of Novus wellness benefits helped Andy take control and actually terminate medication for his condition. Without me even having to ask, he confirmed that this actually makes him a more productive employee. This conversation brought home to me, once again, the massive impact companies have on the lives of individuals, and the force for good that companies can become.

Another inspiring part of this report is the section on Valuing Partnerships. Novus works in partnership in almost every area the company is involved in. In fact, partnership development is a core competency of Novus, whether this means global partnerships to effect major transformation - such as the collaboration with the International Egg Commission (IEC) to advance the consumption of eggs as a low-cost, highly accessible source of nutrition (read Joanne Ivy's insights - she's President of the IEC), or specific local partnerships, such as a multi-stakeholder public-private partnership in Chad, to help build a $50 million industrial poultry production facility which will provide around 30 percent of the country's poultry needs and contribute substantially to food security in that country. This partnership includes the Chad government as well as a Novus customer, Globoaves, and a financing partner, working together to provide affordable, wholesome food for the Chad population and improve the quality of their lives. Read insights from Luis Azevedo about how all this came about. Partnerships are at the heart of sustainability. Companies who know how to collaborate in the true spirit of partnership are the ones that will be around for many years to come.

Please take a look at the Novus report and as always, give feedback.

elaine cohen, CSR consultant, winning (CRRA'12) Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen   or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Ground turkey: off the sustainability menu

Cargill, salmonella, turkeys, one person dead, 77 reported sick, 36 million pounds of ground turkey meat recalled. If you are in the US, you can't have missed this story. One of the largest food product recalls in US history. The practice of adding antibiotics to animal feed is common in the US to maintain animal health and help animals grow more quickly and therefore become more productive. However, the claims are that antibiotic use eventually leads to animal resistance to the drugs and this can cause contamination which is passed on to humans. Also, consumption of antibiotic flavored meat and poultry can over time cause human resistance to certain antibiotic strains. The food safety issue is a complex one and this story shows highlights one of the most basic areas corporate responsibility for livestock food manufacturers. Antibiotic use in animal feed has been banned for use in Europe for some time. In the US, in June 2010, the FDA published draft guidance intended to help reduce the development of resistance to medically important antimicrobial drugs used in food-producing animals, but the practice is still widespread. The recommendation is that antibiotics should be administered to animals only to assure animal health and only under veterinarian supervision.

I had the opportunity to learn more about this issue during the past year while working with Fenton Communications to prepare a very interesting sustainabiilty report. The talented Fenton team led by Susan McPherson handled all the great design work and my role was researching and writing the report. I am referring to the 2010 Sustainability Report for Novus International, a privately-owned US-based global company and a world leader in animal nutrition and health, specializing in the development and manufacture of food additives and supplements for livestock.

Novus International has been around for twenty years with a vision of helping to feed the world affordable, wholesome food and achieve a higher quality of life. Novus products are truly innovative and support global sustainability needs to help deliver more, safe food to the increasing global population on track to reach 9 billion in 2050. The report is called Innovation with Integrity, and has is structured around some of the core, critical sustainability questions that Novus people ask themselves every day, for example:

  

• How does Novus innovation increase global food availability?
• How does Novus innovation contribute to improved nutrition?
• How do we increase food capabilities for future generations through science and education?
• What role does integrity play in running our business?
• How do we inspire our employees to excellence with integrity?
• How do we make a contribution to the global economy?
• What are the priority sustainability issues for our stakeholders?
• How do we collaborate with customers to meet their needs?
• How do we make quality a top priority at Novus?
• How do we ensure a sustainable supply chain?
• How do we respect animal well-being?
• How do we contribute to the sustainability of our communities?
• How do we work to protect the environment?

Novus's Animal Health Programs and scientifically-developed products utilize dietary antioxidants and combinations of gut environment modifiers to naturally support beneficial bacteria, defeat harmful bacteria like salmonella and enhance digestion and absorption without reliance on antibiotics. Novus feed additives give livestock producers a choice to significantly reduce the amount of antibiotics used in livestock production and therefore reduce food safety risks.

Not only this, many Novus products increase the bioavailability of food that is fed to animals, therefore reducing the amount of feed necessary to maintain healthy and productive poultry and livestock. This has major environmental benefits as lower volumes of feed are required and lower volumes of waste are generated. Finally, all of this has a positive economic impact, helping farmers to reduce costs while increasing productivity. Novus works closely with thousands of customers in 100 countries to apply locally-relevant solutions for safe, healthy and cost-effective livestock food production. In emerging markets, this can enable small farmers to develop economic independence and a secure livelihood for themselves and their families, often raising the economic standards in entire villages and regions. 

The move away from broadscale use of antibiotics in farming just seems to make sense. Would you want to live on a permanent diet of antibiotics if you weren't actually sick? Why would you want your food to come from animals that have consumed vast quantities of antibiotics every day of their lives? Novus offers alternatives to this and and many other sustainability-critical questions relating to meat, poultry and fish production and consumption. And, as a highly engaged and responsive business, I am sure they would appreciate your feedback on their third Sustainability Report (GRI checked at Application Level B). 

On a personal note, I have to say it was a pleasure and a privilege working with the delightful Susan McPherson and Fenton and Novus on the production of this report. I personally interviewed a wide range of Novus people from the CEO, through to the entire Executive Leadership Team as well as Novus people throughout the world from China to India to Belgium to Spain to USA to Africa and more. In each conversation, I did not fail to be impressed with the sense of mission that each and every one displayed and their strong commitment to making the world a place in which food is safer, more available and affordable and offering higher nutritional benefits. Also, Chief Sustainability Officer, Joyce Cacho, PhD, drove the process to ensure absolute rigor in application of the GRI framework, which as any reporter knows, is not always the easy option. Keenly innovative, highly conscious of social and environmental issues, aligned behind an imperative of integrity, systematic, responsive and clear on priorities, I was left convinced that Novus International is a business which is run on embedded sustainability principles and practices.

Now, I wonder how many antibiotics my daily dose of ice-cream contains.... 

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices  Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)