Nani Pajunen

Social sustainability performance indicators – experiences from process industry

Sustainable industrial development can be advanced through the development and application of sustainability metrics. This study addressed the application of social sustainability metrics to the measurement of sustainability performance within process industry and to metal production at the plant level in particular. The applied social sustainability indicators are one part of the overall sustainability index which aims at presenting a balanced and holistic view of plant-level sustainability performance. Application of plant-level indicators can support informed decision-making and fill in potential gaps in corporate-level assessments and reporting initiatives with respect to plant-level social sustainability performance. The social part of the overall index provides information on both in-plant sustainability performance and on the direct and in-direct impacts of plant operations on the surrounding society with special emphasis on the supply chain and emerging social due diligence aspects. The results of pilot implementation of social indicators in Ruukki Lappohja plant indicated a very high level of social sustainability performance with minor areas of improvement such as social risk management auditing covering the whole supply chain, suppliers communication on social responsibility requirements to workers and sub-suppliers, signing of the code of conduct by employees and reporting on policies on local community relations, safety in supply chain covering suppliers and contractors and factory health and safety performance in relation to average field of industry performance in this field.

Social metrics in the process industry: Background, theory and development work

Sustainable development as the leading global development paradigm and sustainability as a cornerstone of modern industrial development have guided this development work on social metrics in the process industry. This study addresses the development of social metrics in the process industry and for metal production, in particular, at the plant level. The developed social indicators are one part of the overall sustainability index that aims to present a balanced and holistic view of plant-level sustainability performance, encompassing information on all different dimensions. This development work was preceded by the benchmarking and review of existing global reporting frameworks, initiatives and the literature. Current indicators of industrial sustainability mainly satisfy the needs of corporate-level management and capital investors. Therefore, plant-level indicators are critically needed to support and fill potential gaps in corporate-level assessments and management with a special emphasis on plant-level sustainability. The purpose of our development work for social indicators was to operationalise the concept of sustainability and associated performance measurement at the plant level. The development of social indicators was carried out through workshops with industry partners. As a joint effort, eight core social indicators and their associated sub-indicators were developed. We also report the results of our benchmarking and review of existing frameworks, initiatives and the literature. The social part of the overall sustainability index provides the information on both in-plant sustainability performance and the direct and indirect impacts of plant-level operations on the surrounding society including various stakeholders, interest groups and citizens.

Value in sustainability: the process industry perspective

The most important driver for management is successful business that increases its value to shareholders. The adoption of environmentally responsible business practices can open up an additional range of opportunities for companies, for example by improving material efficiency. The choice to improve environmental performance of a company tends to also improve its financial performance. In this paper, our aim is to study the value of sustainability in process and mining industry from the perspective of interest groups such as investors, customers and the public, by using case examples. Interviews and workshops were employed to investigate whether or not investors and customers are interested in sustainability in the process and mining industries. We also illustrate how easy it can be to jeopardize corporate reputation through. The present situation and challenges faced in bringing sustainability into everyday business practices are summarized and proposals made concerning ways to achieve increased sustainability.

Recycling – the importance of understanding the complexity of the issue

Abstract Natural resources and raw materials such as metals and minerals are often taken for granted in today’s society. Without them, the offerings of an enormous variety of modern conveniences, including computers and mobile phones, would not be possible. The production of these everyday items depends on a secure, sustainable, and reliable supply of critical raw materials. In addition, product development also requires new hybrid materials when targeting lightweight structures, etc. However, the mandatory recyclability of new products or materials is not obligatory or even prevailing practice in present manufacturing business. Therefore, the main research question in this article is: “how to solve the challenge of recycling in industrial system?” In this article, a comprehensive approach to recycling based on the findings of research projects is presented. Simplified, this involves moving the challenge from the end of the product’s life cycle to the beginning, to the design or even to material development phases. Life cycle and system thinking and material know-how in the design phase are found to be essential elements of a new approach to recycling. This approach stems from the material development and market economy perspectives. Furthermore, the vulnerability of the industrial system to create uncertainty to recycling is also demonstrated.