Jeff Mendelsohn, Founder & Chair, New Leaf Paper Rachel Parikh, Director, Sustainability, SAP Lindsay Stoda, Senior Business Analyst, Interface Christopher Miller, Social Mission Activism Manager, Ben & Jerry's How do companies quantify the value of successful employee engagement initiatives? What are the current best practices around incorporating tangible on-the-ground HR incentives tied to recruiting, performance assessment, compensation, and competency building? What does it take to effectively drill down objective and subjective performance criteria and goals to the level of every employee?

1. Beyond Employee Engagement: Using New Metrics
to Embed Sustainability throughout the Organization
The New Metrics of Sustainable Business 2013
Jeff Mendelsohn, New Leaf Paper
Rachel Parikh, SAP
Lindsay Stoda, Interface
Christopher Miller, Ben & Jerry’s

2. Beyond Employee Engagement
How do social and environmental initiatives create value?
Sustainable Brands New Metrics Conference
Rachel Parikh, Director, Sustainability, SAP

3. © 2013 SAP AG. All rights reserved. 3
Key metrics of our sustainability performance
Social
2011 2012
Total Revenue (non-IFRS, billion EUR) 14.3  16.3
Operating Margin (non-IFRS, %) 33  32
Customer Success n/a 8.9
Employee Engagement (%) 77  79
Business Health Culture Index (%) 65  66
Employee Retention (%) 93  94
Women in Management (%) 18.7  19.4
Greenhouse Gas Footprint (kt CO2e) 490  485
Total Energy Consumed (GWh) 860  860
Data Center Energy (kWh/employee) 2,824  2,598
Renewable Energy (%) 47  60
Economic
Environmental

4. © 2013 SAP AG. All rights reserved. 4© 2013 SAP AG. All rights reserved. 4
SAP Sustainability Dashboard

5. © 2013 SAP AG. All rights reserved. 5
Where are we today?
Integrated Reporting
www.sapintegratedreport.com

6. © 2013 SAP AG. All rights reserved. 6
Key Question: How do social and environmental activities
create value for SAP?
SAP
Stakeholder
groups
Costs
related to SAP’s ecological and
social initiatives
Direct and indirect benefits
for SAP related to its ecological and
social initiatives
Behavioural
Change

7. © 2013 SAP AG. All rights reserved. 7
Connecting non-financial and financial performance
Example: Employee Retention
© 2012 SAP AG. All rights reserved. 7
For SAP, a one percent
turnover per year (about
640 people) will typically
lead to more than
62 million EUR impact on
operating result.*
* According to SAP-internal study

8. © 2013 SAP AG. All rights reserved. 8
Connecting non-financial and financial performance
Example: Greenhouse Gas Emissions
© 2012 SAP AG. All rights reserved. 8
Through increased
carbon efficiency, SAP
has avoided costs of
EUR 235 million
since 2008.*
* in comparison to a “business as usual”
extrapolation with baseline 2007

9. © 2013 SAP AG. All rights reserved. 9
Example: How do employee related KPIs affect SAP’s
financial performance?
Company ImpactChange of Behavior and Perception
(Stakeholder level – here: Employees)
Financial Impact
Revenues
Operating
Margin
Impacting
SAP’s company
value / stock
price
Employee
Engagement
Business
Health Culture
(BHC)
Employee
Retention
Capability
Building
Innovation
Customer
Success
Employer
Ranking
Productivity
Social
Investment
GHG
Footprint
Diversity /
WiL
*
*
*
*
Synchronous effects of BHC and
Employee Engagement
Individual KPI effects
Effects on top-line Revenues
Effects on Operating Margin
SAP‘s corporate objectives*

10. Beyond Employee Engagement
How do social and environmental initiatives create value?
Sustainable Brands New Metrics Conference
Rachel Parikh, Director, Sustainability, SAP

11. measure,
manage, and
disclose
chris miller
activism manager, ben & jerry’s
@cmwdc

12. 2 companies
2 approaches
• seventh generation
• ben & jerry’s

13. seventh generation
• was looking for a way to drive
increased ownership of and
engagement around the company’s
sustainability goals
• to move beyond incremental progress
and foster innovative new approaches
to reduce the impact of the business

14. an integrated plan
• raise the visibility of the goals
throughout the company
• implement an employee engagement
program focused on the company’s
impacts and strategies to reduce them
• imbed sustainability targets into the
company’s annual incentive program

15. incent it
• Virgin Plastic Reduction
• BioPreferred Certification
• Employee Engagement
• Community Service

16. results
mixed
• visibility and engagement of company
goals rose dramatically
• sustainability metrics were added to
monthly business dashboard
• goals ultimately too broad to be
managed effectively

17. ben & jerry’s
• increase the total QoR score at a rate faster
than the rate of the Company’s sales
growth – as required by the unique
acquisition agreement between Unilever
and Ben & Jerry’s.
• requires a way to aggregate and score
progress against a range of social and
environmental metrics
• metrics must be regularly trackable,
ownable, and actionable

18. a plan born out
of an acquisition• Sourcing Ingredients:
• Fully sustainable dairy
• Fairtrade-certified Sugar
• Certified-Humane cage-free & free-range Eggs
• Fairtrade-certified Chunks & Swirls
• Fairtrade-certified Banana
• Fairtrade-certified Cocoa
• Fairtrade-certified Flavorings (i.e.: Vanilla & Coffee)
• Sustainable Materials (Packaging and Office)
• Non-GMO ingredient sourcing
• Community & Activism and engagement
for 2012, the QoR measures the specific goals for social and
environmental performance within 13 priorities of our business

23. lessons learned
• what is measured, can be managed
• what is disclosed, is done
• set goals that are focused, ownable,
and actionable
• money talks

24. Interface Voice
Lindsay Stoda
New Metrics of Sustainability
September 2013

25. 25
Measuring Engagement – Interface Voice
• Using text messaging to create feedback loops and assess employee
engagement.
• Allows for monthly, quarterly surveys of employees where data is recorded
and reported in near real time.
• Analytics allow you to view data can by department/shift/tenure/etc to view
trends and explore results.
• Using independent consulting service to ensure anonymity for respondents.
• Extremely low cost in comparison to other employee engagement
measurement systems: 1 Android phone and some consulting support
• Using Telerivet, a free online mobile communications platform.

26. 26

27. 27
Measuring Engagement – Interface Voice
• Held 3 quarterly surveys among our US manufacturing employees
• Response rate increased from 23% in the first quarter to 56% in the third
• Example Questions:
#1: Are you able to do your best work daily? Yes or No.
#2a (if Yes): Does Interface make it easier or harder to do your best work daily? Yes or No.
#2b (if No): What is the biggest barrier to you doing your best work? Management, Co-Workers,
Lack of Opportunities, Lack of Independence, Lack of Recognition.
#3: On a scale of 0-10 where 0 is "we could do much more" and 10 is "we do everything we can",
to what extent do you think your department does its best work daily?
•Identified a trend in responses among different departments
•Operations management held follow-up focus groups with employees to
receive additional input and address issues identified in the surveys