Environment

In SGS’ 2009 Sustainability Report we highlighted some examples of the positive contribution SGS is making towards sustainability indirectly through our service provision.In this year’s Report we focus on our direct impacts and efforts to reduce the environmental footprint associated with our day-to-day business. Since we last reported, the SGS Group has embarked on a number of programmes that focus on areas where we can have the most positive influence.

Under The Plan projections, our business is set to grow considerably through the combination of organic growth and acquisitions. Our environmental programme needs to keep ahead of this growth curve so that good practices are built into our expanding business and we have a solid platform to align the sustainability performance of acquired companies. SGS will achieve this by establishing Group-wide best practices through operational functions while encouraging and supporting a multitude of innovative grassroots initiatives that are developed locally.

Core programmes

Energy efficiency in buildings
SGS has over 1 250 buildings worldwide including laboratories, administrative buildings, storage, and mixed-use buildings. In 2010 buildings, and operational processes within our buildings, represented 64% of SGS’ global CO2 emissions.

In recognition of the potential to reduce the environmental impact of our buildings, SGS signed the Manifesto for Energy Efficiency in Buildings in November 2009, pledging to reduce CO2 emissions from our owned buildings. We set an initial CO2 target of a 10% reduction by 2013 and a 20% reduction by 2020, compared with a 2010 baseline. This target was updated in 2010 to a 10% reduction by 2014 so that it can be integrated into the business objectives to help us achieve The Plan. Our 2020 target remains unchanged.

Green IT
The purchase, use and disposal of IT equipment generates a significant environmental impact for a company of our size. Across the business SGS has over 45 000 personal computers and laptops and almost 2 800 data servers. The aim is to reduce our impact on a Group-wide scale by selecting and implementing environmentally responsible solutions, supported by green investment. Not only are we looking at the impact of IT itself, but also investigating how such technologies can contribute to reducing other environmental impacts such as telecommuting and remote conferencing to reduce travel.
Our Group-wide IT programmes are summarised below:

• Responsible replacement of equipment – balancing the environmental cost of replacement with keeping equipment running longer and actively seeking reuse and recycling options.
  
  
• Power management – optimizing power management software on all computer and IT equipment.
  
  
• Responsible purchasing – incorporating environmental considerations into the purchasing process, including requesting suppliers to offer green products and considering lifecycle analysis.
  
  
• Server virtualisation – optimizing the energy efficiency of servers and data centres.
  
  
• Reduce printing – combining technology and education to reduce printing and to use recycled and FSC certified paper.

Green cars
SGS Group utilises over 7 000 vehicles in our Trend Countries, with vehicle fuels making up around 28% of our total carbon footprint. We are working towards a lower emission fleet and setting formal targets for 2011. The new generation of electric cars presents SGS with a significant opportunity to reduce our emissions without compromising safety or transport efficiency.

Minimising laboratory waste
SGS carries out thousands of laboratory tests each year with most analyses creating some form of waste in the form of samples, chemicals, disposable equipment and paper. In addition to this, we are required to retain a wide range of sample materials on behalf of our clients as part of our testing service. These retained samples are carefully stored in our warehouses and, at the end of the retention period, SGS is responsible for their disposal. Our laboratories already practise the highest standards of hazardous waste management which is regularly audited by our internal technical governance team. In our 2009 Report however, we committed to carrying out a detailed review of waste across the business with the intention of developing clear guidelines for both minimising waste and disposing of it with minimal environmental impact.

Sustainable procurement
We are seeking to build relationships with all our major suppliers to engage with them on choices of environmental products and services, to understand their own sustainability performance and to preferentially select sustainable options.

Key performance indicators

Looking ahead

The commercial goals set by the SGS Group will need to be matched by an acceleration of environmental management so that we can expand the business in a sustainable way. We will focus on developing and implementing new technologies wherever technically and commercially possible, and will continue to raise environmental awareness and promote responsible environmental behaviours and practices across the business.

As soon as we are confident that we have developed optimal, workable solutions, we will seek to roll them out through businesses and functions. We also need to develop effective models for sustainable acquisitions so that we quickly identify best practices that would benefit the Group and transfer technologies and skills that have been developed by SGS to acquired companies where they need them. Furthermore we will work to develop a way of monitoring and comparing overall environmental impacts pre- and post-acquisition.

Just as importantly, we want to encourage employees and our business partners to use their skills to create large numbers of locally-grown initiatives and solutions. Harnessing the talent of our employees and empowering local teams to implement environmentally responsible programmes will lie at the centre of our progress towards sustainability.