Environmental Activities of Adecco - Research Proposal Example

Environmental Activities of Adecco Executive Summary The main purpose of the report is to highlight on the environmental activities that are undertaken by Arcelor Mittal. In light of this, different elements of environmental policies are examined to understand whether the company has disclosed the details of the policies lucidly. It is observed that Arcelor Mittal has disclosed many elements lucidly in the annual reports and websites. However, it can be stated that the company has also failed to depict few important elements, which describe the efficiency of the company to a great extent. Hence, it is recommended that the company should ensure that rest of the disclosures should be made in order to satisfy the investors and customers. Table of Contents Table of Contents 3 Introduction 4 Methodology 5 Analysis of results 6 General Environmental Activities 6 Verification/Certification 6 Implementation of ISO14001 at the Arcelor Mittal 6 Periodic independent audits on environmental performance 9 Product Certification with respect to environmental impact 10 Initiatives to improve environmental practices 11 Environmental Spending 11 Amount spent on fines related to environmental issues 11 Environmental Management 11 Executive compensation is linked to environmental performance 11 CEO statement on environmental performance in letter to shareholders and/or stakeholders 12 A statement of corporate environmental policy, values and principles, environmental codes of conduct 12 Discussion 14 Conclusion 15 Reference List 16 Appendix 18 Introduction Corporations operating globally need to undertake various environmental activities in order to conserve the environment and provide a sustainable society. The environmental policies are prepared so as to promote these activities in the organization (Hirata Corporation, 2014). The main purpose of the report is to highlight the environmental activities that are undertaken by a European Carbon Intensive Industries Company, Arcelor Mittal. The report also investigates the level of disclosure that is provided by the company with respect to the specific environmental activities in the past 2 years. The level of disclosures is provided with the help of disclosure index, which includes General Environmental Activities and Specific Environmental Disclosure as per GRI indicators. The individual activities that are highlighted in the Appendix are detailed in the report along with the level of disclosure. The methodology indicates the process employed to elaborate the environmental activities and how the data are collected. The section, analysis of the results, depicts the comparative evaluation of data obtained in the last two years. The analysis is followed by a general discussion regarding the environmental activities that are undertaken by the companies. The general discussion is based on the activities that are disclosed by the selected company. This part of the report is prepared with the help of academic literature that are provided by different authors regarding the disclosed topic. The recommendations are provided based on the research and conclusion, which is a good source of information for further researches. Methodology The methodology includes the methods and principles that are employed in collecting information regarding the environmental activities of Arcelor Mittal (AM). The information pertaining to the different disclosures of environmental activities are gathered from the company website. The company website gave a brief view on the activities; however, the annual reports played an important role in providing all the information. The general information regarding the environmental activities is extracted from different websites, which are rich source for providing an in-depth knowledge about the topics. The discussion part of the research lays emphasis on the different academic literatures, which are associated with the topic. The literatures are obtained from articles that are written by renowned authors. These authors have provided their general view regarding different topics that are discussed in the report. In order to execute an in-depth research pertaining to the environmental activities, the mentioned methods are used as they are only process of collecting information. Company website and annual reports provide rich information pertaining to the operation and different activities undertaken by the company. It does not only provides information regarding the operation and product of the company but it also gives minute details about the different financial, environmental, social and marketing activities. Hence, it is a good source for collecting information. The articles are chosen as it gives emphasis on the activities in general and also assists in comparing activities of the company. Limited time is employed for collecting all the data and after that the report is prepared based on the data within a specific time period. Analysis of results General Environmental Activities Verification/Certification Implementation of ISO14001 at the Arcelor Mittal Arcelor Mittal has provided high level of disclosure regarding implementation of ISO14001 in its website. The information is consistent in the last two years as it gave emphasis on how the company has complied with the environmental policies. ISO14001 includes the following policies (Hirata Corporation, 2014): 1) High quality products are produced so as to meet the demands of the customers and satisfy them. 2) The products should provide high value to customers and are environmental friendly. As a result the companies should give emphasis on improvement and technical innovation (Hirata Corporation, 2014). 3) The companies should abide by the environmental laws while producing a particular product and ensure that the process and product is safe. 4) The Environmental Management System/ Quality Management System should be improved continuously in order to prevent pollution and enhance the quality of production and products (Hirata Corporation, 2014). In the past two years, the company has adopted advanced techniques for producing steel in lighter, stronger and more improved carbon-intensive manner. The steel once produced are genuinely renewable resource for the company (ArcelorMittal Tubarão, 2014a). The acknowledgment of ISO 14001 to Arcelor Mittal highlights its philosophy and corporate culture. This incorporates the principles associated with sustainability and places human resource and its nature at the centre. This motivates the company to produce high quality steel that will satisfy the customers and improve their quality of life (ArcelorMittal Tubarão, 2014a). The following tables depict the activities that are undertaken by the company during 2012 and 2013 in order to comply with policies of ISO14001. Figure 1: Activities in 2012 (Source: ArcelorMittal Tubarão, 2014b) (Source: ArcelorMittal Tubarão, 2014c) The figure indicates that Acelor Mittal has concentrated on providing all the information pertaining to the activities that helps in attainment of the goals of ISO14001.During 2012, the company has given stress on committing their activities towards climate change, biodiversity, environmental management and lifecycle and recycling analysis. Nevertheless, in 2013, Acelor Mittal has concentrated in managing the climate changes, lifecycle and recycle analysis of the products, product innovation, prevention of pollution and enhancing resource efficiency. This difference in activities indicates that the company has taken various initiatives for improving the quality of products and production process so as to satisfy the requirements and expectation of the consumers (Enviance, 2011). Periodic independent audits on environmental performance Arcelor Mittal has provided high level of disclosure regarding periodic independent environmental audit. During 2007, the company had launched environmental policies, which was a significant step towards increasing the brand value of the group (ArcelorMittal Tubarão, 2014d). The policy was granted by Group Management Board; it included independent compliance audit cycle. The environmental audit program ensured that the company complies with the policies and any non-compliance is dealt severely by the Board. The environmental audit is performed quarterly in order to ensure that the company follows all the relevant procedures, which are ascertained by the environmental law (ArcelorMittal Tubarão, 2014d). During 2013, about 100% of the steelmaking faculties are maintained by the ISO14001 certification (ArcelorMittal Tubarão, 2014e). The facilities are audited each year in order to understand whether it complies with the national and local environmental regulations and policies (ArcelorMittal Tubarão, 2014e; ArcelorMittal Tubarão, 2014d). Product Certification with respect to environmental impact Arcelor Mittal has provided high level of disclosure regarding product certification with respect to environmental impact. Product certification refers to the process which certifies that a particular product has succeeded in passing quality assurance and performance test. It also assists in ascertaining that the product meets all the qualification criteria that are stipulated in the regulations and contracts. The product certification bodies are named as ISO/IEC, which is an international standard that assures that the company is competent enough to produce quality products (Wessells, 2001). Accelor Mittal is a major steel maker in Czech Republic and is even considered as the biggestt steel provider in the world. The annual production capacity is 3 million tonnes and it operates in more than 40 countries worldwide (ArcelorMittal Tubarão, 2014f). Arcelor Mittal ensures quality products to its customers and the products are certified under ISO 9001. The quality assurance system specified under ISO 9001 instructs the company to improve the quality of the products (ArcelorMittal Tubarão, 2014g). Initiatives to improve environmental practices The company discloses the initiatives undertaken for improving environmental practices very lucidly. It is committed towards minimizing environmental repercussions for development of mineral resources. The company aims at building strategies, which will enhance their responsibilities for the community in which it operates (ArcelorMittal Tubarão, 2014h). The initiatives are certified under ISO14001. Environmental Spending Amount spent on fines related to environmental issues Arcelor Mittal has maintained high level of disclosure of the fines that was imposed for environmental issues. The company has paid a fine of $390,000 for polluting the environment and violating air quality standards (CBC, 2014.). It has experienced 13 environmental charges when the neighbors collected evidence regarding the emission problems (CBC, 2014). Environmental Management Executive compensation is linked to environmental performance The compensation of the executive is disclosed lucidly by the company in their annual reports. The total remuneration of the Chief Executive Officer (CEO) and the Board are structured in such a manner that it has the ability to retain and attract executives (ArcelorMittal Tubarão, 2014i). The amount of remuneration is highly dependent on the achievement of the business and also on the environmental performance. It is noted that if the company fails to provide poor environmental performance then it will decrease in profit, which will affect the remuneration of the executives (ArcelorMittal Tubarão, 2014i). CEO statement on environmental performance in letter to shareholders and/or stakeholders The CEO of Arcelor Mittal has depicted that the company has contributed towards the development of the economy by producing quality products. With regard to environmental performance, the CEO has highlighted on the fact that the most important area of concern is carbon emission that is associated with the chemical process for steel production. The emission of the company is within the limit (ArcelorMittal Tubarão, 2014j); however, for creating a better world with low-carbon so that the climate is not affected the emission should be reduced. Nevertheless, he also stated that the steel products have contributed towards the development of the economy. The company works in close partnership with the customers and also with the suppliers for achieving the environmental objectives by producing innovative steel products (ArcelorMittal Tubarão, 2014j). A statement of corporate environmental policy, values and principles, environmental codes of conduct The code of conduct of Arcelor Mittal is prepared for understanding the management practices and the business transaction that takes place within the company. The code is applied to directors, employees and officers of the company and its subsidiaries that are present worldwide (ArcelorMittal Tubarão, 2014i). The employees must comply with the international, local, federal and national law or regulation that is formulated by the company. It commits towards observing competitions minutely so that they can formulate their own competitive advantage. The court has the right to impose high fines if the company fails to comply with the regulations and laws (ArcelorMittal Tubarão, 2014i). The company has recognised that every individual have separate interests; thus it aims at encouraging all the interests, which is especially important for the development of the community. However, the employees are benefitted from a number of facilities from the company. They are not allowed to earn profit from their position in the company and accepting any personal gift from the customers is also illegal. If the employees have to stand for an election, he has to inform the supervisors. The company expects that the employees aims at preserving the quality of customer relation and maintain the business relationship, which is based on fairness, mutual respect and integrity (ArcelorMittal Tubarão, 2014i). The supplier of the company is chosen after considering its main goal, which is based on the reliability, quality, price, utility and services (ArcelorMittal Tubarão, 2014i). The commissions and fees are paid to the consultants on a regular basis for improving the business relation with the suppliers. The confidential data and information should be strictly employed by the company for accessing its performance. It is prohibited from disclosing to the outsiders. It should also include the transactions and items that are related to the business and no omissions are allowed in accordance with the laws. The theft or loss in the company must affect its profitability. The properties of the company are protected from any illegal use; hence, honesty and integrity is maintained (ArcelorMittal Tubarão, 2014i). The Global Environmental Policy is examined by group professionals at the corporate level so that the company offers better experience in environmental management. The professionals work in harmony with the high skilled environmental engineers. The team always aims at developing innovative ways for managing and minimizing the environmental effect. During 2013, about 100% of the steelmaking facilities are maintained by the ISO 14001 certification status (ArcelorMittal Tubarão, 2014k; ArcelorMittal Tubarão, 2014i). Discussion Arcelor Mittal has achieved its organizational goal by complying with the laws and regulations that are formulated by higher authorities. However, the company takes into consideration environmental audit in order to understand whether the environmental activities are complying with the laws and regulations that are formulated by the company itself. In light of this, environmental audit can be highlighted by emphasizing on different literatures. According to Maltby (1995), environmental audit is linked with a number of activities, which are undertaken for the protecting the management and environment. The term indicates towards examination of environmental performances against few objectives that are pre-determined. It is regarded as an efficient management tool for accessing the performance of the environmental activities undertaken by the companies (Council of Science and Technology Institutes, 1994). It facilitates the management control over the environmental practices. According to Biondi, Frey and Iraldo (2000), audit also assists in assessing whether the company comply with the environmental policies and meet the regulatory requirements. If a company fails to comply with the policies then serious legal actions can be taken against it by the government bodies, which may result in high financial loss through imposition of property damage claims, fines and remedial costs (Council of Science and Technology Institutes, 1994; Sinclair-Desgagné and Gabel, 1997). Conclusion Arcelor Mittal has developed a successful business by managing its environmental and operational problems. The company has established many environmental policies so as to avoid legal actions from higher authorities. It complies with the requirements pertaining to ISO 14001. The certification ensures that the company produces high quality products so that the customers are satisfied. It also indicates that the company should also employ advance technologies and invent new products so as to make higher profit. In doing so the company must follow the environmental policies that are formulated for avoiding any legal consequences. The company discloses its environmental policies and minute details very lucidly in the websites and there is consistency in the disclosure over the years. Though all the questions relating to the topic are not answerable in case of Arcelor Mittal, but the questions, which are answered, have clearly indicated that environmental actions taken by the company are fair enough to sustain in the long run. Nevertheless, it is recommended that the company should concentrate on disclosing rest of the information pertaining to the general and specific environmental activities. Reference List ArcelorMittal Tubarão, 2014a. ISO14001. [online] Available at: < http://www.cst.com.br/english/sustainability/environmental_management/iso14001/iso14001.asp > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014b. Making Steel More Sustainable. [online] Available at: < http://corporate.arcelormittal.com/corporate-responsibility-old/environment > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014c. Making Steel More Sustainable. [online] Available at: < http://corporate.arcelormittal.com/corporate-responsibility/making-steel-more-sustainable > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014d. Where Do We Stand? [online] Available at: < http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0CC4QFjAD&url=http%3A%2F%2Fcorporate.arcelormittal.com%2F~%2Fmedia%2FFiles%2FA%2FArcelorMittal%2Fcorporate-responsibility%2Fpublications-and-reports%2Farchive%2Fglobal-corp-resp-reports%2F720-3-1-CSRreviewV3.pdf&ei=C-WwVNLOC8uLuwS58ICADw&usg=AFQjCNEFXkXPMVNRLQhzgSRNbu-bEhEqFg&bvm=bv.83339334,d.c2E > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014e. Environmental Management. [online] Available at: < http://usa.arcelormittal.com/Corporate-responsibility/Environment/Environmental-management/ > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014f. Products and services. [online] Available at: < http://ostrava.arcelormittal.com/products-and-services/products-and-services.aspx > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014g. Certifications. [online] Available at: < http://rails.arcelormittal.com/en/certificates.html > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014h. Sustainable Development. [online] Available at: < https://www.arcelormittal.com/minescanada/en/sustainable_development/default.aspx > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014i. Annual Report. [online] Available at: < http://corporate.arcelormittal.com/investors/financial-reports/annual-reports > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014j. Message from CEO. [online] Available at: < http://corporate.arcelormittal.com/corporate-responsibility/overview/ceo-message > [Accessed 10 January 2015]. ArcelorMittal Tubarão, 2014k. Environmental Management. [online] Available at: < http://usa.arcelormittal.com/Corporate-responsibility/Environment/Environmental-management/ > [Accessed 10 January 2015]. Biondi, V., Frey, M. and Iraldo, F., 2000. Environmental management systems and SMEs. Greener Management International, 29, pp. 55-69. CBC, 2014. Arcelormittal Dofasco Fined After Guilty Pleas To 6 Pollution Charges. [online] Available at: < http://www.cbc.ca/news/canada/hamilton/news/arcelormittal-dofasco-fined-after-guilty-pleas-to-6-pollution-charges-1.2654235 > [Accessed 10 January 2015]. Council of Science and Technology Institutes, 1994. Environmental Auditing. Council of Science and Technology Institutes, 2, pp. 1-6. Enviance, 2011. Arcelormittal USA Selects Enviance To Manage Environmental Initiatives. [online] Available at: < http://www.enviance.com/about-enviance/pressreleaseview.aspx?id=192 > [Accessed 10 January 2015]. Hirata Corporation, 2014. Environmental Activities. [online] Available at: < http://www.hirata.co.jp/en/corporate/environment.html > [Accessed 10 January 2015]. Maltby, J., 1995. Environmental audit: Theory and practices. Managerial Auditing Journal, 10(8), pp. 15-26. Sinclair-Desgagné, B. and Gabel, H. L., 1997. Environmental auditing in management systems and public policy. Journal of Environmental Economics and Management, 33(3), pp. 331-346. Wessells, C., 2001. Product Certification and Ecolabelling for Fisheries Sustainability. Rome: Food & Agriculture Organisation. Appendix Table (1) General Environmental Activities Disclosure Existence vs. absence (0-1) Verification/Certification 1 Implementation of ISO14001 at the plant and/or firm level. 1 2 Independent verification/assurance about environmental information disclosed in the CSR report/web (implemented by big accounting firms). 0 3 Periodic independent verifications/audits on environmental performance and/or systems 1 4 Certification of environmental programs by independent agencies 0 5 Product Certification with respect to environmental impact 1 6 External environmental performance awards and/or inclusion in a sustainability index 0 7 Participation in voluntary environmental initiatives endorsed by EPA or Department of Energy 0 8 Participation in industry specific associations/initiatives to improve environmental practices 1 Environmental Performance Indicators (EPI) 9 Companies should report fully on target performance 0 10 Performance evaluated against targets 0 Environmental Spending 11 Summary of dollar/Euro savings arising from environment initiatives to the company 0 12 Amount spent on technologies, R& D and/or innovations to enhance environ. performance and/or efficiency 0 13 Amount spent on fines related to environmental issues 1 Environmental Management 14 Existence of a Department for pollution control and/or management positions for environmental Management 0 15 Existence of an environmental and/or a public issues committee in the board. 0 16 Stakeholder involvement in setting corporate environmental policies 0 17 Executive compensation is linked to environmental performance 1 18 A statement about the involvement of board director in environmental responsibility 0 19 CEO statement on environmental performance in letter to shareholders and/or stakeholders. 1 20 A statement of corporate environmental policy, values and principles, environmental codes of conduct. 1 21 A statement that the firm undertakes periodic reviews and evaluations of its environmental performance 0 22 A statement about specific environmental innovations and/or new technologies 0 Table (2) Specific Environmental Disclosure as per GRI indicators GRI Indicators Aspects No disclosure (0) Partial disclosure (1) Full disclosure (2) EN1 Materials used by weight or volume 1 EN2 Percentage of materials used that are recycled input materials 0 Energy EN3 Direct energy consumption by primary energy source 1 EN4 Indirect energy consumption by primary source 1 EN5 Energy saved due to conservation and efficiency improvements 1 EN6 Initiatives to provide energy efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives 0 EN7 Initiatives to reduce indirect energy consumption and reductions achieved 0 WATER EN8 Total water withdrawal by source 0 EN9 Water sources significantly affected by withdrawal of water 0 EN10 Percentage and total volume of water recycled and reused 0 BIODIVERSITY EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 1 EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas 1 EN13 Habitats protected or restored 1 EN14 Strategies, current actions, and future plans for managing impacts on biodiversity 1 EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk 1 EMISSIONS, EFFLUENTS, AND WASTE EN16 Total direct and indirect greenhouse gas emissions by weight 1 EN17 Other relevant indirect greenhouse gas emissions by weight 1 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 1 EN19 Emissions of ozone-depleting substances by weight 1 EN20 NO, SO, and other significant air emissions by type and weight 1 EN21 Total water discharge by quality and destination 1 EN22 Total weight of waste by type and disposal method 1 EN23 Total number and volume of significant spills 1 EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally 1 EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff 1 PRODUCT AND SERVICES EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 1 EN27 Percentage of products sold and their packaging materials that are reclaimed by category 1 COMPLIANCE EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations 1 TRANSPORT EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce 1 OVERALL EN30 Total environmental protection expenditures and investments by type 1 Total items disclosed per year 1 Read More