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Sustainable Development Goals CSR Measurement

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(1)

Jimmy Tanaya

jtanaya@aicon.co.id

(2)

Outline

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“Priorities” are shifting

Abundance resources

Limited

Abundance resources

Limited

Mass production

sustainable production

Mainly economics

PPP

Some importance discourses:

Limit to growth (1972)

Our Common Future/Brundtland Report (1987)

Earth Summit/Agenda 21 (1992)

Earth Summit/Agenda 21 (1992)

(5)

Some Implications

Civil society movement e.g. Fairtrade.

Civil society movement e.g. Fairtrade.

International conventions: montreal protocol, kyoto

protocol, etc.

Persyaratan faktor lingkungan-sosial dalam dana

hibah.

Tighter trade policies e.g. traceability, precautionary

principle, etc.

principle, etc.

(6)
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(8)

SDG Example

Goal 1. End poverty in all its forms everywhere

!"#$

1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance

1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

%#&!'%(

1.a Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions

1.b Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in

(9)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

SDGs ISO 26000 PKBL

Goal #1, End poverty in all its forms

everywhere

6.3. Human Rights

Human rights risks situation Economic, social and cultural rights

6.8. Community Involvement and Development

Education and culture

Employment creation and skills

Program Kemitraan Bantuan Bencana Alam Bantuan pendidikan dan/atau training (entrepreneurship education) Bantuan pengembangan prasarana dan/atau

Employment creation and skills development

Technology development and access

Wealth & income creation

prasarana dan/atau sarana (jalan, listrik) Bantuan sosial

(10)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal#2, End hunger, achieve food security, and improved nutrition, and promote

sustainable agriculture

6.5. The Environment

Prevention of pollution (water and land)

Sustainable resources use Climate change mitigation and adaptation

Bantuan pelestarian alam (sumber air)

Bantuan pendidikan dan/atau kesehatan

(pertanian, food security) Bantuan pengembangan 6.8. Community Involvement

and Development Health (nutrition)

prasarana dan/atau sarana (irigasi)

(11)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #3, Ensure healthy lives 6.4. Labour Practices Bantuan peningkatan Goal #3, Ensure healthy lives

and promote well-being for all at all ages

6.4. Labour Practices

Health and safety at work 6.5. The Environment

Prevention of pollution (water resources)

6.7. Consumer Issues

Protecting consumers’ health and safety (avoid

using hazardous chemical in

Bantuan peningkatan kesehatan Bantuan pendidikan dan/atau training (aspek kesehatan) Bantuan pelestarian alam (sumber air) Bantuan

pengembangan using hazardous chemical in

products)

6.8. Community Involvement and Development

Health

(12)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #4, Ensure inclusive 6.3. Human Rights Bantuan pendidikan Goal #4, Ensure inclusive

and equitable quality

education and promote life-long learning opportunities

6.3. Human Rights Discrimination and vulnerable groups 6.4. Labour Practices

Human development and training in the workplace 6.8. Community Involvement and Development

Education and culture

Bantuan pendidikan dan/atau training Bantuan pengembangan prasarana dan/atau sarana (pembangunan sekolah)

Education and culture

Employment creation and skills development

(13)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

SDGs ISO 26000 PKBL

Goal #5, Achieve gender equality and empower all

women and girls

6.3. Human Rights

Discrimination and vulnerable groups Civil and political rights

Economic , social and cultural rights 6.8. Community Involvement and

Development

Community involvement (keterlibatan kaum perempuan) Program Kemitraan (women entrepreneurship) Bantuan pendidikan dan/atau pelatihan Bantuan peningkatan kesehatan Bantuan sosial kaum perempuan)

Education and culture

Technology development and access Wealth and income creation

Health

Bantuan sosial

(14)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

SDGs ISO 26000 PKBL

Goal #6, Ensure availability and sustainable

management of water and sanitation for all

6.5. The Environment

Prevention of pollution

Sustainable resource use (esp. water) Climate change mitigation and

adaptation (esp. water resources) Protection of the environment, biodiversity and restoration of natural habitats

Bantuan pelestarian alam (sumber air) Bantuan

pengembangan prasarana dan/atau sarana (instalasi air bersih)

Bantuan peningkatan natural habitats

6.8. Community Involvement & Development

Health

Social Investment (infrastructure)

Bantuan peningkatan kesehatan (sanitasi) Bandtuan

(15)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

SDGs ISO 26000 PKBL

Goal #7, Ensure access to affordable, reliable, sustainable, and

modern energy for all

6.5. The Environment

Prevention of pollution

Sustainable resource use (esp. energy)

Climate change mitigation and adaptation

6.7. Consumer Issues

Access to essential services

Pengembangan sarana dan/atau prasarana Bantuan pendidikan dan/atau pelatihan (mengenai energy) Access to essential services

6.8. Community Involvement and Development

(16)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #8, 6.3. Human Rights Program Goal #8, Promote sustained, inclusive and sustainable economic growth, full productive employment

6.3. Human Rights

Fundamental principles and rights at work 6.4. Labour Practices

Employment and employment relationship Conditions of work and social protection Social dialogue

Health and safety at work

Human development and training at workplace 6.5. The Environment

Program Kemitraan Bantuan pendidikan dan/atau pelatihan Bantuan sosial kemasyarakatan dalam rangka employment and decent work for all

6.5. The Environment

Sustainable resource use

6.8. Community Involvement & Development Employment creation and skills development Wealth & income creation

(17)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #9, Build resilient infrastructure,

promote inclusive and sustainable

industrialization and foster innovation

6.5. The Environment

Sustainable resource use 6.8. Community Involvement & Development

Employment creation and skills development

Technology development and access

Wealth and income creation

Program Kemitraan Bantuan pengembangan prasarana dan/atau sarana Bantuan pendidikan dan/atau pelatihan Wealth and income creation

(18)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #10, reduce inequality within among countries

6.3. Human Rights

Discrimination and vulnerable groups

Civil and political rights

Economic, social and cultural rights

Bantuan pendidikan dan/atau pelatihan (tentang isu2 HAM dan politik

(19)

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #11, Make cities and human settlement inclusive, safe, resilient, and sustainable

6.3. Human Rights

Human rights risks situation 6.7. Consumer Issues

Access to essential services 6.8. Community Involvement and Development

Community involvement (esp. in urbanization participatory) Health Bantuan korban bencana alam Bantuan pengembangan prasarana dan/atau sarana

(20)

SDGs ISO 26000 PKBL

Goal #12, Ensure 6.5. The Environment Program

Hubungan SDGs, ISO26000, dan PKBL

Goal #12, Ensure

sustainable consumption and production patterns

6.5. The Environment

Prevention of pollution Sustainable resource use 6.6. Fair Operating Practices

Promoting social responsibility in the value chain

6.7. Consumer Issues

Protecting consumers’ health and safety Program Kemitraan (fokus pada bantuan pengembangan produksi bersih) Bantuan pendidikan dan/atau pelatihan safety Sustainable consumption 6.8. Community Involvement & development

Employment creation and skills

(21)

SDGs ISO 26000 PKBL

Hubungan SDGs, ISO26000, dan PKBL

Goal #13, Take urgent action to combat climate change and its impact

6.5. The Environment

Climate change mitigation and adaptation

Bantuan pelestarian alam

Goal #14, Conserve and sustainably use the oceans, seas, and marine resources for sustainable

development

6.5. The Environment

Prevention of pollution Sustainable resource use (esp. fish as raw material) Protection of the

Bantuan pelestrian alam

Bantuan sosial kemasyarakatan (khususnya nelayan) development Protection of the

environment, biodiversity and restoration of habitats 6.8. Community Involvement and Development

(22)

SDGs ISO 26000 PKBL

Hubungan SDGs, ISO26000, dan PKBL

SDGs ISO 26000 PKBL

Goal #15, Protect, restore and promote sustainable use of terrestrial

ecosystems, sustainably manage forests, combat desertification, and halt and reserve land

degradation and halt

6.5. The Environment

Prevention of pollution Sustainable resource use

Climate change mitigation and adaptation

Protection of the

environment, biodiversity and restoration of natural habitats.

Bantuan pelestarian alam

degradation and halt biodiversity lost

restoration of natural habitats. 6.8. Community involvement and development

(23)

Hubungan SDGs, ISO26000, dan PKBL

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(24)

Hubungan SDGs, ISO26000, dan PKBL

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(25)
(26)
(27)

CSR Measurement: Why?

“When you can measure what you are speaking

about and express it in numbers, you know

“When you can measure what you are speaking

about and express it in numbers, you know

something about it; but when you cannot

measure, when you cannot express in numbers,

your knowledge is of a meagre and unsatisfactory

kind. It may be the beginnings of knowledge, but

you have scarcely, in your thoughts, advanced to

the stage of a science.” (Lord Kelvin (Liebowitz

the stage of a science.” (Lord Kelvin (Liebowitz

and Suen, 2000))

(28)

But, how?

People

Profit

Planet

Profit

(29)

Environmental Valuation

1 + 1 +

0 - 0

2 3, - 3,

4 3, ) 3,

& 2 + ,

* 5+

%

5

* +

# 0

(+ + &

( 6 7 #

" + , *

8

& + +

(30)

People/Social value

Less developed concept

Less developed concept

(31)
(32)

CSR: Measurement Category

Tools

Non-monetary

Monetary

Proxy

Tools

Non-monetary

Monetary

Proxy

Angle

Public & Company

Company

Public

Strength

Simple

Easy to use

Relatively

comprehensive

Flexible

Widely accepted

“Bottom-line”

Comparison over time

Relatively objective

Easier decision making

Homogeneous

“Bottom-line”

Comparison over time

Relatively objective

Easier decision making

Easier than monetary

Widely accepted

Weakness

Heterogeneous

No “bottom-line”

Partial valuation

Less flexible

Rarely used (nowadays)

(33)

Proxy Example

=

(34)
(35)

CSR & Business

Business language: “Risk and Return”. Increased

Business language: “Risk and Return”. Increased

return or lower risk.

End-of-Pipe (“Return”):

Niche Market

Premium price (brand value)

Environment + social value

Supply chain/risk management (“Risk”):

Supply chain/risk management (“Risk”):

Lower cost

(36)

Business Risk

Social

Business Risks

Economy

Social

Environment

Risks

(37)
(38)

CSR Value: Risk Mitigation

Risk Register: Probabilitas & Dampak

Risk Register: Probabilitas & Dampak

inherent (Rp)

Peta hubungan CSR & Business Risk

Korelasi: Pre-test & post-test

(39)

CBA: Steps of Analysis

1. What is the nature of company?

1. What is the nature of company?

2. Goals? [“Problem” to be solved]

3. Objectives?

4. Alternatives?

5. Consequences?

6. Value of consequences?

7. Certainty of consequence?

(40)

CBA: (Selected) appraisal criteria

Net Present Value (NPV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

(41)

!

:?

. .?

? ? : :?

> ? > ?

: :> :? : :

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# *

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* 6

(42)

Net Present Value (NPV)

+

+

+

8

(43)

Internal Rate of Return (IRR)

+

+

8

< @ < ,

(44)

Benefit Cost Ratio (BCR)

+

+

8

(45)

CSR Measurement: Simplified

Saving Dampak Inherent

CSR’s Benefit

Saving Dampak Inherent

CSR’s Benefit

Hitung kontribusi CSR terhadap probabilitas

kejadian.

Hitung Net CSR Value berdasarkan NPV atau

IRR.

(46)

CBA: Common problems

Choice of discount rate

Choice of discount rate

Treatment of secondary benefits (multiplier effect)

Treatment of government subsidies (cost recovery?)

Determination of opportunity costs

(47)

Non-Monetary e.g.: ISO26000

6

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7 . 1 ) -6

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(48)

CSR & Project Development

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(49)

End

Q&A, Discussion

Q&A, Discussion

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