ERM - Sustainabilitypdf

Environmental Resources Management
Business Review 2013
The world’s leading sustainability consultancy
Sustainability in Action

ERM Business Review 2013 01erm.com/sustainabilityreport2013
Our Clients
By helping our clients achieve better
outcomes, we not only contribute to
the sustainability of their businesses
but also help to address broader global
challenges, such as access to natural
resources and energy, and protection
of biodiversity and local communities.
We are always looking for ways to help our
clients achieve their business objectives by
incorporating sustainable best practices
into our offerings. We bring our technical
expertise, professional skills and sector
knowledge to assist with making decisions
that are sustainable and deliver the
best long-term business outcomes.
Our Services
Our core services (known as practice
areas) are designed to meet the broad
range of our clients’ changing needs.
The strong communities that form these
practices mean that consultants can work
across geographical boundaries, develop
innovative solutions to address our clients’
challenges and enhance shareholder value.
ERM’s core practice areas are as follows:
Air Quality and Climate Change:
Addressing clients’ challenges relating
to air quality, carbon management,
energy efficiency and climate risk.
Impact Assessment and Planning:
Supporting clients to understand, manage
and mitigate the full cycle of effects
their operations can have on the natural,
social and economic environment,
including regulatory support to ensure
long-term successful compliance.
Performance and Assurance:
Helping corporations reach their
environmental, health, safety and
social performance potential, deliver
operational excellence, manage risks
and ensure compliance with regulations.
Through our Sustainability Information
Solutions offering, we advise on and
deliver software systems to gather and
manage environmental, health, safety
and social information effectively.
Contaminated Site Management:
Creating strategies and implementing
projects to help clients manage their
contaminated sites and return these sites
to appropriate productive uses to enhance
economic, environmental and social value.
Transaction Services: Ensuring
successful business transactions – with an
expanding provision of full environmental,
social and governance assessments and
advice in response to investor demands.
Risk Management Services: Quantifying
and managing the safety risks associated
with hazardous installations and
processes, with the objective of protecting
people, assets and the environment.
ERM Certification and Verification
Services (ERM CVS): Delivering
independent, third-party, performance-
driving certification, verification and
report assurance services to help many
of the world’s leading multinational client
organizations improve their sustainability
performance. ERM CVS is a wholly
owned subsidiary of the ERM Group.
For more details of these services, visit
www.erm.com, or for ERM CVS visit
www.ermcvs.com.
erm.com/sustainabilityreport2013
4,600 42
years of
innovative
sustainability
solutions
employees across the world
Welcome to our
world of sustainability
As the world’s leading sustainability
consultancy, ERM is in a unique position to
contribute to finding and delivering solutions
to global sustainability challenges.
We have over 150 offices in 40 countries
and territories. With gross revenues of
around US$900 million, we employ 4,600
full time employees, with our employee
Partners owning a 45 percent stake in our
Company. ERM is committed to creating
value for its clients by providing strategic
and technical advice in the business
context and delivering projects and
programs that are high quality,
professional and value creating.
Over the past three years, we have worked
for more than 50 percent of the Global
Fortune 500 companies. We have delivered
innovative solutions for these clients, at the
same time helping them to understand and
manage the sustainability challenges that,
increasingly, the world is facing.
Together with our annual Sustainability
Report, this Business Review responds
to feedback on our 2012 Sustainability
Report. Our stakeholders requested that,
in 2013, we place more emphasis on how
ERM is generating solutions to the global
sustainability challenges our clients
face while continuing to improve our
own performance.
This Business Review looks at the impact
we are having on the global sustainability
agenda through our advisory services, our
projects and programs, our contributions
to thought leadership and to society, our
operations and our business performance.
The Sustainability Report is published
online and sets out our performance
in fiscal year 2013 (FY13) against Key
Performance Indicators (KPIs) and targets
across the seven areas that form the focus
of our Sustainability Program.
Together, the Business Review 2013
and the Sustainability Report 2013
provide a comprehensive view of ERM’s
sustainability contributions and
accomplishments for FY13.
Contents
02 Our Highlights
04 CEO Message
06 Our Services
08 Our Projects and Programs
10 Thought Leadership and Society
12 Our Operations: People and Offices
14 Our Business and Commercial Focus
16 Financials
Our Sustainability Policy and
Approach documents set out
our commitment in seven key
performance areas:
Our People
Health and Safety
Business Conduct
and Ethics
Environment
Community
Thought Leadership
Clients
160150 countries
and territories
worked in over
the past three
years
offices around
the world, from
Argentina to
Vietnam
Introduction
Cover: Conducting a water level survey in Nunavut, Canada.
Photo taken by Natasha Cowie, Vancouver, Canada.
Above: Undertaking borrow pit inspections on a road
construction project in the Gobi Desert, Mongolia. Photo
taken by Tim Haydon, Port Macquarie, Australia.

02 03ERM Business Review 2013 erm.com/sustainabilityreport2013
Houston, US
CERAWeek
ERM served as
the Sustainability
Partner for a third
consecutive year
(see page 10)
Rio de
Janeiro, Brazil
Rio+20
Conference
Advancing the
sustainability
agenda
(see page 11)
Tanzania
ERM Foundation
Flagship Projects
Significant pro bono
and fundraising
support
(see page 11)
Australia
Key acquisition:
Zer01
Expanding our
Sustainability
Information
Solutions capability
(see page 5)
Mumbai,
India
Contaminated
site management
Increasing the
emphasis on
sustainability
considerations in
this practice area
(see page 5)
Japan
ITOCHU Corporation
Providing environmental
and social due diligence
for a potential acquisition
(see page 7)
UK
Determining the
benefits of Centrica’s
carbon-efficient
products
(see page 7)
Frankfurt,
Germany
Environmental and
Recycling Award
Recognizing ERM’s
technical standards
(see page 9)
South Africa
Helping to empower
local people in
emerging markets
(see page 13)
Peru
New approach
for Anglo
American in Peru
(see page 7)
Vancouver,
Canada
Key acquisition:
Rescan
Deepening our
mining sector
capability
(see page 15)
Mexico City,
Mexico
Office relocation
Office relocates
to LEED Gold
standard building
(see page 12)
Our Highlights
Our Highlights
Highlights of ERM’s
recent activities
around the world.
Globally
Mitigating the risks of water surplus
and scarcity
Establishing a cross-practice global water
network comprising expertise related to
strategic and technical water risks
(see page 6)
Globally
Making marine projects more
sustainable
In response to client needs we
have strengthened our global
team to 80 marine specialists
(see page 8)
 Countries/Territories
with ERM offices
Toronto,
Canada
PDAC Conference
Presentations on key
issues for the mining
sector
(see page 10)
Doha, Qatar
COP18 UN Climate
Change Conference
(see page 10)

Through our strategy One Planet. One
Company. ERM. we are striving for
sustainable best practices to be embedded
within every layer of our operations
– from the services we offer and the
projects we deliver to the offices and the
communities in which we live and work.
As Vision 2050 of the World Business
Council for Sustainable Development
(WBCSD) illustrates, our clients, and the
world as a whole, are facing continued
and escalating challenges with respect to
sustainability. With the world’s population
expected to exceed nine billion by 2050,
the demand for energy, water, food
and other essential commodities is
increasing – along with the fragility of our
planet. ERM is at the forefront of helping
industries, corporations and investors
respond to this new operating landscape.
Through our involvement in increasingly
complex and, at times, sensitive global
projects, we are using our expertise to
help find solutions to the sustainability
challenges facing our clients and society
as a whole. We have the strategic and
technical capabilities to be able to support
clients throughout the life cycle of their
business needs, helping to balance the
social, environmental and economic
requirements of investors as well as local
communities, countries and regions.
Additionally, with ERM’s active involvement
in shaping sustainability-related thought
leadership through our membership
of organizations such as the WBCSD,
the United Nations Global Compact
(UNGC) and the Global Reporting Index
(GRI), we can offer the best advice
and deliver the best outcomes for
our clients and the wider society.
Meeting changing needs
Throughout FY13, we supported a range
of mining, oil and gas, power and other
clients as they entered new markets
in Africa, Asia and South America; we
expanded the social and economic
remit of environmental due diligence
processes to identify and manage
liabilities more effectively; and we
helped clients understand and manage
the risks associated with building and
operating complex industrial facilities.
With globally integrated and resourced
teams, such as our newly created global
water network, we are able to deliver the
solutions our clients need. We combine
international and local expertise to provide
full-asset life cycle solutions across
all sectors, anywhere in the world.
Acquisitions
This year, we continued to expand
our operations and capabilities
through two acquisitions.
We acquired the privately owned Canadian
environmental consultancy Rescan, a
170-person company offering a wide range
of services to the resource development
industry. This acquisition will allow us
to continue our strategy of building a
leading position in our key markets.
We also acquired certain assets of Zer01,
Australia’s largest information solutions
firm focused on health, safety and the
environment. This acquisition enhances
ERM’s Sustainability Information Solutions
business in Asia Pacific and adds to
the firm’s global knowledge base and
experience in key applications to create
a truly global delivery capability.
Our commitment
At ERM, our commitment to sustainability
goes well beyond how we manage our
own carbon, waste and water footprints.
It includes ensuring the safety, health
and professional development of our
employees, upholding the highest
standards of business conduct and ethics
and contributing to local communities. As
part of that commitment, we participated
in a range of thought leadership events
and discussions on both a corporate
and individual basis in FY13.
We were involved in the WBCSD Vision
2050 and Action2020 process, which
looks at shaping the agenda for doing
business in a world with dwindling
resources and growing populations.
I am honored to be the Co-Chair of the
Action2020 process, supported by a team
of ERM experts. We also participated in
the Rio+20 United Nations Conference
on Sustainable Development, where
governments, business and civil society
joined together to identify The Future
We Want. We also took part in many
sector-focused events, including the
mining conference PDAC, CERAWeek
and energy conferences led by the SPE.
We are proud to have played a key role
in driving this change, but there are still
many challenges ahead. Sustainability
is not a check-in-the-box activity; as
new risks emerge and impacts evolve,
we must strive to find innovative
solutions and to facilitate meaningful
debate. At times, this means we receive
attention for our work on high-profile,
and sometimes controversial, projects.
We consider carefully our involvement
in each project to ensure we meet our
Code of Conduct and Sustainability
Approach, manage our risks and provide
balanced input towards client decisions.
On behalf of the Board and management
team, I would like to thank our clients for
their continued support and all ERM
employees around the world for their
commitment, energy and passion, without
which we could not do what we do –
thank you.
In FY14 and beyond, ERM will continue to
deliver smarter solutions, to enable better
outcomes for our clients and the planet.
We will also continue to address the world’s
most significant sustainability challenges
and unlock tomorrow’s opportunities.
We hope you will join us on that journey.
John Alexander
Chief Executive Officer
Sustainability is
not just part of our
business; it is our
business.
CEO Message
CEO
Message
50%Over the past three years, we have
worked for more than 50 percent
of the Global Fortune 500 companies
Left: Conducting hydrological terrain surveys in British Columbia, Canada. Middle: ERM employees participating in beach
clean-up activities in Lima, Peru as part of the
International Coastal Clean-up Day.
John Alexander, Chief Executive Officer
Right: Saurav Chakraborty from ERM’s Contaminated Site Management Practice installing a
groundwater remediation wellhead as part of a remediation project in Mumbai, India.

Our clients are operating in a world
where expectations across the full
spectrum of stakeholders are higher,
risks are greater, investment returns are
challenging, regulations are tightening,
and the need to report and be transparent
is becoming more critical. Increasingly,
to prosper, not just to survive, the
best organizations are facing the
challenge to demonstrate that they are
sustainable in order to be successful.
For business today, revenue, risk and
reputation are linked inherently to an
organization’s sustainability credentials,
with sustainability underpinning
long-term success and shareholder
returns. Major safety or environmental
incidents, supply chain issues or a lack
of transparency in business dealings
can have direct and material impacts
on a company’s shareholder value.
At ERM, we understand the strategic
value of sustainability and how to make
it an operational reality. As business
conditions have evolved, we have
focused on delivering practical advice
and technical solutions to thousands
of organizations around the world.
Global delivery, local expertise
Every client we work with, every project we
deliver, and every risk we mitigate contributes
positively to our overall impact on the world’s
sustainability challenges. We are piloting
various approaches to enable us to measure
this impact more effectively, while at the
same time challenging ourselves to create
new approaches and services that drive
more sustainable outcomes for our clients.
Our ability to deliver such outcomes
is reliant on our commitment to the
continuous development of our people,
processes and services. We deliver.
We innovate. We improve. We invest.
In FY13, we added new approaches to
existing service offerings, including Client
Training Programs, Product Sustainability
and Integrated Water Management. We
also increased our investment in our key
client and sector-focus teams to help us
understand and respond to our clients’
needs and industry-specific challenges.
We are partnering with our clients
to provide services throughout the
life cycle of our clients’ projects. For
example, we are providing capital project
support to prevent delays in licensing
and permitting. We are delivering
sector-specific support for oil and gas
clients, concentrating on efficiency and
performance improvements. For clients
involved in extracting unconventional
resources, we are engaging across the
entire value chain, from site identification
to permitting, stakeholder engagement
and assurance of operating performance.
Regardless of the location, industry or
service offering, ERM brings a unique
understanding of sustainability issues
and impacts to every client engagement.
By considering all business risks
and opportunities, we help to create
shareholder value and support the long-
term sustainability of an organization while
delivering short-term value and outcomes.
Determining the benefits of
Centrica’s carbon-efficient
products
Centrica is a company active in each stage
of the energy life cycle – from sourcing and
generating to processing and storing, and
from trading and supplying to servicing.
When Centrica wanted to calculate
the carbon and financial benefits to its
domestic and commercial downstream
customers from the carbon-efficient
products and services it installs, ERM’s
Climate Change team devised innovative
methodologies to address this question.
This included matching publicly available
data on potential savings with the levels
of installation for products such as
insulation, energy-efficient boilers and
solar photovoltaic panels. Using this
data, the team was able to calculate the
cumulative carbon and financial savings
made over the last three years and then
put them in the context of Centrica’s
upstream renewable (wind) generation and
its business scope 1 and 2 emissions.
Centrica is now using this information to
help formulate wider communications to
its customers about how the company is
contributing to the decarbonization of the UK.
Our
Services
Our Services
ERM’s global resources and local expertise
enable us to support clients in addressing
the broad sustainability challenges impacting
their businesses now and into the future.
Mitigating the risks of water
surplus and scarcity
Water is a critical business risk
for many of our clients, in relation
to both scarcity and surplus,
and we help these organizations
use water more efficiently as
part of their operations.
In FY13, ERM established a
cross-practice global water
network, which has expertise
related to strategic and technical
water risks. The team advises
organizations on how to
monitor, measure and manage
water consumption across all
of ERM’s key industry sectors
and helps to address critical
issues. These critical issues
include environmental, political,
regulatory, economic and
societal/cultural factors – all of
which can impact the availability
and quality of water supplies.
By identifying an organization’s
site water stress levels, and
the drivers influencing them
at a regional level, our team
can create water availability
risk scenarios and identify
risk management options.
For example, we helped Syngenta
build an understanding of existing
and future water scarcity issues
that could be used in the decision-
making process for investments.
We also supported a global
mining client in Asia Pacific
that needed to address water
scarcity and surplus issues at
its sites. In addition to balancing
supply, the Company wanted
to safeguard its reputation
with local communities around
responsible water management.
New approach for
Anglo American in Peru
During the concept study stage
of Anglo American’s Michiquillay
mine development, the project
team identified several social and
environmental challenges that were
critical to the project’s success. The
team recognized the opportunity
to mitigate cost-effectively these
sustainability risks through project
design during the early stages of the
project life cycle and engaged ERM
to support them in systematically
analyzing the risks and identifying
options to mitigate them.
ERM discussed the findings
with the project team to identify
five strategic project decisions
that could materially influence
the social acceptability and
‘permitability’ of the Michiquillay
project, which relate to:
• Location of tailings;
• Process water source;
• Concentrate transport methods;
• Stakeholder engagement; and
• Mine plan.
Following confirmation of the initial
findings with the project director and
key members of the project team,
ERM facilitated a scenario analysis
exercise during a three-day workshop
held in Lima, attended by the
Michiquillay project team. During the
workshop, alternatives were identified
and debated for each key decision.
A systematic process was used to
compare each alternative against its
respective base case to understand
the potential risks and opportunities.
The output of the workshop was a
summary of the key sustainability
risks facing the project and a
number of different options for the
project to investigate during the pre-
feasibility study. The engagement
of a multi-disciplinary project
team in the process meant that
the options developed were both
technically and financially feasible.
The identification of sustainability
risks and challenges at the concept
stage allowed the Michiquillay project
team to obtain a full understanding of
the potential business consequences
of decisions made during early
stage project development.
ITOCHU
ITOCHU Corporation
(ITOCHU), a Japanese
trading house, retained ERM
to provide environmental
and social due diligence
when it was considering
the acquisition of a fresh
produce and packaged foods
business. Among other things,
ITOCHU wished to ensure the
operations were consistent
with important issues listed
in ITOCHU’s CSR Action
Guidelines for Supply Chains.
Through a series of meetings,
ERM’s team evaluated
ITOCHU’s due diligence
processes and developed an
approach to meet the client’s
needs. ERM then conducted
an audit sample of the
operational EHS practices of
the business to be acquired.
ERM developed further an
extensive EHS audit process
for an in-depth review of the
operations. Prior to the sale
closing, ERM conducted this
comprehensive audit of the
significant operations of the
business to be acquired.
Our approach to the work and
deep understanding of the
client’s needs and concerns
put ITOCHU in a position to
understand clearly the EHS
aspects of the acquisition.
Above: ERM’s John Gangemi and Monte Alves
capturing images for public consultation on a
potential hydro project in Washington, US.

The increased complexity, particularly for
projects spread over longer periods of
time, has led us to improve our processes
to ensure the overall health, safety and
well-being of all of our employees and
sub-contractors. This includes carrying out
more rigorous travel risk assessments and
improving access to expert support while
onsite. Both are key factors for projects
located in difficult and remote areas.
A successful project does not just need
to employ the right processes; it also
requires the right people to be deployed.
In FY13, we established a new system
for assessing the credentials of our
sub-contractors as part of our focus
on sustainability in the supply chain.
By taking a more proactive approach
through our supply chain, we will be able
to respond more quickly to client needs
and ensure that everyone working on an
ERM project applies the same standards
for health, safety and business conduct.
Assessing and managing project risk
A robust approach to assessing and
managing risk is required for the
thousands of projects we work on each
year. Every new major project undertaken
by ERM is screened using our Project
Liability Analysis (PLAN) system, which
consists of an automated workflow in
our customer relationship management
platform hosted on Salesforce.com.
We have enhanced PLAN to enable
us to improve the identification and
mitigation of risks related to commercial,
health and safety, business conduct
and ethics, sub-contractor use and
reputational considerations. We are
also engaging more actively on these
issues to ensure that all projects are
delivered according to our standards
and the standards of our clients. This
enables us to deliver better outcomes
and manages these potential risks.
Adapting to the new agenda
To reflect the evolving needs of our
clients and the changing nature of their
projects, we continued to adapt our skills
and services in FY13. For example, we
increased the emphasis on sustainability
considerations as part of contaminated
site remediation, which remained a key
focus for our clients, particularly in the oil
and gas, mining, power and manufacturing
sectors across all geographies.
We conducted a global survey of our
contaminated site practitioners to benchmark
our progress on embedding sustainability
factors into every clean-up project. The
survey revealed that minimizing waste
generation, reducing risk to workers and
protecting water supplies are the top
three sustainability considerations. These
are now being incorporated into the way
we deliver these projects to clients.
In FY14, we will be taking steps to
integrate other economic and social
indicators, such as local employment
and communities, when considering the
remediation of contaminated sites.
At ERM, our goal is to ensure that client
projects are delivered safely, sustainably
and successfully.
Increasingly, our clients are embarking on
more complex projects in more challenging
locations. Many of these projects form
part of larger and longer-term programs
of work, requiring significant planning,
investment and resources. In addition,
these clients expect to be able to achieve
their goals in the most cost-effective way.
Our Projects
and Programs
Our Projects and Programs
Optimized processes
and improved governance
controls help ERM
deliver projects more
effectively with better
client outcomes.
Environmental and
Recycling Award recognizes
ERM’s technical standards
ERM was awarded the
Environmental and Recycling
Award at the 2012 World
Demolition Summit for work
it carried out for Celanese
in relation to the expansion
of the Frankfurt Airport.
This ERM project was one
of the biggest of its kind in
Europe and involved moving
the Celanese chemical plant in
Kelsterbach, Germany to allow
for the expansion of the airport.
The planning and investigation
stage spanned five years and
involved site visits, interviews with
stakeholders, document review and
cost analysis. Additional phases
involved soil and groundwater
investigation, the coordination
of the demolition application,
and community consultation.
Innovative techniques were used
by ERM to reuse materials, which
included recycling concrete and
metals. The project was delivered
on time and within budget,
without any incidents. Audits
by the public authorities show
the project is in full compliance
with required standards.
The World Demolition Summit
recognized ERM for what
it described as “Executing
the best environmental and
recycling options available
in the world on a very large,
complicated and extremely
technical demolition project”.
Making marine projects
more sustainable
ERM’s marine team works
on projects as diverse as
offshore wind farms, oil
and gas exploration and
production, subsea pipelines
and telecommunications cables,
marine aggregate production,
marine tailings disposal, and ports
and harbor development and
maintenance. These projects are
undertaken around the world and
range from shallow water estuary
and coastal developments to
deepwater offshore projects, all of
which require the use of different
data-gathering techniques and
assessment methodologies,
as well as the development
of project-specific mitigation
and management measures.
In FY13, we undertook a
diverse range of projects
including environmental impact
assessments for deepwater oil
production projects in West Africa
and Greenland, offshore wind
farms and port development
projects in the UK, and a planned
suspension bridge in Turkey.
We also undertook baseline
data-collection and monitoring
programs for new Floating
Liquefied Natural Gas (FLNG)
vessels off Australia, participated
in marine mammal observation
programs off the coast of
Australia, carried out coastal
habitat sensitivity mapping in
West Africa, and completed
a series of Best Practical
Environmental Options studies
for port and harbor maintenance
operations in the UK.
To meet the demands of
these projects, we have
strengthened our marine team
to 80 marine specialists. This
global team works across
many geographies and time
zones, in remote locations, and
relocates personnel as required
to undertake field studies and
deliver high-quality projects.
We have developed common
standards and processes
including survey design and
sampling and analytical methods,
as well as risk assessments and
health and safety procedures
for employees working at sea
to reduce risks and improve
employee well-being.
Pictured above: The award winning work and members of ERM’s team
with the client at the site in Germany.
Above: Aldo Carrasco from ERM’s IAP Practice conducting a marine
ecology survey in the Paracas Reserve, Peru.
To provide consistent project management
for our largest projects and programs,
including world-class cost/schedule controls
and change management, we launched our
new approach to large project management,
known as ERM PRO. We have trained
the first wave of people in this approach
and will continue its implementation in
FY14. This has already started to show
improvements in delivery, helping to
ensure that projects meet their budget,
schedule and sustainability challenges.

At ERM, we seek to drive sustainability
excellence through investment in
innovation and thought leadership
initiatives. We look to inspire, empower
and engage as we encourage all of our
employees to contribute to the global
sustainability debate by sharing ideas,
expertise and best practice in a range
of forums, publications and technical
communities. In FY13, we intensified
our participation in sustainability
discussions and events to help deepen
our impact and broaden our insight.
Sharing best practice
In FY13, we participated in a range of
opinion-forming discussions and published
45 articles on topics as diverse as life cycle
assessment in product innovation and
social sustainability risks in the biofuels
industry to ecological considerations
in offshore platform decommissioning.
These publications demonstrate ERM’s
thought leadership and unique insight
into existing and emerging sustainability
risks and how to mitigate them.
In FY13, ERM and its employees were
members of more than 320 industry,
professional and technical bodies
around the globe and delivered over
480 presentations at conferences.
Building foundations for the future
In addition to involvement with national
and regional associations, our people also
engaged actively with local communities
across all regions of the world in FY13.
The ERM Foundation plays a fundamental
role in facilitating this engagement.
The ERM Foundation enables our
employees to channel their expertise
and passion into sustainability initiatives
including those related to biodiversity,
environmental education, clean water
and low carbon. These initiatives deliver
tangible benefits to local people, as
well as to the planet as a whole, by
providing practical, technical and
financial support to a range of projects.
To build on the success of The ERM
Foundation, we are establishing a
Flagship Project in each of our three
regions. The first of these projects to
go live, in FY13, was with the PAMS
Foundation, a Tanzania-based non-profit
conservation organization which supports,
among other things, the management
of habitats for elephants in Tanzania.
Tackling climate change
A key initiative to help tackle the world’s
carbon footprint is our Low Carbon
Enterprise Fund (LCEF), a program of
The ERM Foundation. The LCEF provides
financial and pro bono technical and
management support to low-carbon
enterprises that deliver tangible social and
economic benefits to the communities in
which they operate. In FY13, we celebrated
the successful launch of our second
iteration of the Fund in partnership with the
Netherlands-based DOEN Foundation.
The LCEF invests in a broad range of
enterprises and initiatives, such as bio-
fuel briquettes in Rwanda, carbon neutral
coffee in Nicaragua, smokeless stoves for
schools in India and solar lamps in Nepal.
Advancing the sustainability
agenda
In June 2012, the Rio+20 Conference
brought together world leaders, government
delegations, the private sector and civil
society to discuss how we can all work
together to reduce poverty, advance social
equity and ensure environmental protection
on an increasingly crowded planet. As a
signatory to the UNGC and member of
WBCSD, ERM’s participation in Rio+20
strengthened our commitment to advancing
the broader global sustainability agenda.
Prior to the conference, we hosted an
event on Women and the Environment,
which was co-sponsored by Shell,
the UNGC UK Network and the World
Association for Girl Guides and Girl Scouts.
Ros Kelly, former Australian Minister for
the Environment, was a keynote speaker.
Following the event, we published positioning
papers on sustainable development, women
and the environment, and human rights.
We also collaborated with Sustainable
Business Australia and the United Nations
Association of Australia to convene a Post-
Rio+20 business forum and networking
event in Melbourne, and partnered with
PTT, one of the largest companies in
Thailand, to explore the opportunities and
implications of Rio+20 for business.
As part of our commitment during Rio+20,
ERM has become a signatory of the
Women’s Empowerment Principles.
Thought
Leadership
and Society
Thought Leadership and Society
ERM’s participation in
sustainability debates,
initiatives and publications on
a global and local scale helps
drive positive change.
$1mcontributed by ERM in keeping with its
commitment of one percent of profits
going towards The ERM Foundation
and other sustainability initiatives
$1.3mof funds to low carbon enterprises since the
LCEF’s inception in 2008
1,362pro bono hours worked by ERM consultants
on 42 community projects valued at $234,000
480papers presented at conferences
Energizing the
sustainability debate
ERM participates in a number
of high-level events each year,
enabling us to contribute
to and lead the debate on
the numerous sustainability
issues facing our clients.
In 2013, for the third consecutive
year, ERM was the Sustainability
Partner for CERAWeek, a leading
global energy event that brings
together senior energy decision-
makers from around the world.
With insight from over 300
speakers — including senior
industry executives, government
officials and thought leaders
— on the changing energy
landscape, ERM’s sustainability
and energy experts presented on
a range of issues. These included
managing community impacts
surrounding unconventional
resource development, defining
operational excellence in the
energy sector and evaluating
the impact of oil and gas
resources on the socioeconomic
development of Africa.
PDAC is one of the world’s
leading mineral exploration
conferences, bringing
together more than 30,000
delegates from 125 countries.
At this year’s event, ERM
led a panel discussion on
“Maximizing Environmental
and Social Performance during
Exploration”, which revealed
an opportunity for mining
companies to link their corporate
social responsibility policies
more effectively with actual,
on‑the‑ground performance.
A delegation from ERM’s Air
Quality and Climate Change
Practice also joined government
negotiators and advocacy groups
for the 18th session of annual
international talks on the UN
Framework Convention on Climate
Change and the Kyoto Protocol:
COP18. At the event in Qatar,
attendees shared perspectives,
gauged concerns and gained
insights about the potential
impacts and opportunities
facing ERM and its clients.
Top: ERM presented, chaired an event and hosted the exhibitor booth at
the world’s leading mineral exploration conference – PDAC 2013.
Bottom: APAC Regional CEO, Keryn James, speaking at CERAWeek
on the opportunities and benefits of stakeholder engagement.
Flagship Project:
Helping elephants
thrive in Africa
Tanzania is home to around
one-quarter of Africa’s elephants,
but with over 10,000 elephants
being killed each year for their
ivory, poaching remains a
serious threat to their survival.
In FY13, ERM identified the PAMS
Foundation as a Flagship Project
to benefit from significant pro
bono and fundraising support,
helping to address the issue of
elephant poaching in the Ruvuma
corridor, an unprotected area
in Mozambique and Tanzania.
PAMS, working with local
scouts to monitor population
levels, has seen evidence
of large scale poaching.
A team of ERM geographical
information specialists is working
with PAMS to support information
gathering and mapping to
eliminate poaching and identify
alternative livelihoods for the
poachers. At the same time, ERM
colleagues around the region
are raising funds to purchase
much-needed tracking devices
that will enable PAMS to record
and monitor elephant numbers
and instances of poaching. The
ERM team will also be working
with local scouts in the field to
provide essential training.

Putting our people first
In addition to providing our employees
with the tools they need to work more
effectively, we also equip them with
the training they need to grow and
develop personally and to meet our
clients’ ever-changing needs.
ERM is committed to enabling and
encouraging its employees to achieve
their full potential. By expanding the
content featured in our in-house learning
and development program, the ERM
Academy, we can offer a wealth of
programs and training modules to aid
personal and professional development.
We can also track what training has been
undertaken, and where development is
needed. In FY13, employees received on
average more than 40 hours of training
to further their technical, client, business
management and leadership development.
A number of consultants also participated
in our ERM Aspire and Partner-in-Training
programs, which form part of our focus
on building the leaders of the future.
To ensure that we make the best use of
our people’s skills and deliver the best
outcomes, we deployed a new global HR
information system in FY13. The system
enables us to match the right resources to
the right projects quickly and effectively.
This not only benefits our clients but also
offers improved career development
opportunities and provides us with a
global approach to managing our people.
Driving improved performance
At ERM, we are committed to making
the most of all our resources – whether
energy, water, people or paper – to drive
greater sustainability across our business.
Our commitment to sustainability extends
to every ERM office and every individual
at ERM. We are evolving and enhancing
the way we operate around the globe to
reduce our direct footprint on the planet.
To advance our sustainability strategy
and goals, we encourage every office
to develop an action plan to improve
performance across the seven focus
areas of our Sustainability Program
at a local level. This has resulted in a
series of local initiatives in each of the
focus areas, particularly with respect
to community, health and safety, and
people, as well as the environment.
Less waste, less travel
Effective resource utilization is a key
component of our Green Buildings
Guidelines, which support the
consideration of sustainability‑related
factors when establishing new offices and
relocating existing offices. These guidelines
range from the choice of heating/air
conditioning and lighting to the materials
used for office refits to selecting locations
to provide better public transport access.
Reducing the waste generated by our
offices and promoting the reuse of
materials remain priorities for ERM. For
example, we established a global program
for recycling IT equipment with any resulting
revenues going to the ERM Foundation.
In the context of our GHG emissions, we
are continuing to manage the volume of
our business travel. As part of service and
project delivery, our employees need to
collaborate with clients and colleagues
in multiple locations. To enable them
to do this remotely, we extended our
use of video conferencing technology
in FY13, with 85 percent of employees
now having access to the technology.
The leaders of the future
Having updated our Career Framework
for both consultants and our professional
support employees, we continue to
develop and implement our Leadership
Programs. The Leadership Programs
are tailored to different roles and needs
and are designed to provide ERM with
a leadership pipeline to drive ongoing
growth and exceptional service delivery.
Our global ERM Aspire Program provides
experienced consultants with the opportunity
to strengthen their leadership contribution
to the business. The 12-month development
program includes skills workshops, webinars,
mentoring and one-to-one reviews.
We also enhanced our Partner-in-Training
Program by introducing new webinars
and workshops for participants and a
stronger readiness assessment for potential
candidates. This key program is the main
vehicle through which we develop new
Partner employees, who are the leaders
of ERM’s business around the world.
Our
Operations:
People and
Offices
Engaging with employees
to develop and implement
local sustainability
initiatives helps ERM
minimize the impact of its
business around the globe.
Our Operations: People and Offices
Our office in Mexico City
relocated to a new building
constructed to the Leadership
in Energy and Environmental
Design (LEED) Gold standard.
LEED is an internationally
recognized mark of excellence
and provides building owners
and operators with a framework
for identifying and implementing
practical and measurable green
building design, construction,
operations and maintenance
solutions. The building in Mexico
City was constructed on a former
car dealership site in a previously
densely developed area.
The Mexico City team has been
able to reduce significantly the
energy used for lighting per square
meter by sectioning work stations
with LED lighting and maximizing
the use of natural light. A more
efficient air conditioning system
has delivered energy savings
of more than 20 percent and
improved indoor air quality.
The new building was also
constructed using sustainable
materials, including waste
wood, unwanted marble and
broken glass. In addition, ERM
employees can now choose
from a range of sustainable
commuting options, including
several means of public transport
and a bicycle-sharing scheme.
Driving continual
improvement with
accurate data
Project Evergreen established
our new sustainability data
management approach,
enabling a step-change in
how ERM monitors, measures,
manages and, over time,
improves the overall impact of
its operations around the globe.
The cloud-based solution,
using the CloudApps software,
allows us to collate sustainability
performance metrics – such
as energy use, participation in
conferences and activities in
local communities – for each of
our 150 offices, and provides
an integrated repository for our
global data. Its implementation
was supported by members
of our own Sustainability
Information Solutions team,
who provide this same service
to leading companies in many
sectors across the globe to
manage their own sustainability
data requirements.
As well as giving us greater
insight into the sustainability
of our operations, Project
Evergreen is designed to reduce
the time it takes to aggregate
and analyze data at our offices.
It plays a key role in generating
the metrics needed for reporting
and will provide managers with
tailored dashboards to help
them understand and improve
performance on an ongoing basis.
Above: The Mexico City office has relocated to a building constructed
to LEED Gold standard which makes more efficient use of natural light.
20%reduced energy use in new Mexico City office
Empowering local people
in emerging markets
Broad-Based Black Economic
Empowerment (BBBEE) is a national
program launched by the South
African Government to support
transformation in the workplace
and provide opportunities
for people from previously
disadvantaged backgrounds.
ERM is committed to the principles
of BBBEE and participates in
a range of activities that not
only provide excellent work
prospects to local people, but
also evolve our corporate culture.
ERM in South Africa has
established a BBBEE Trust for the
benefit of its key black employees
and other black charitable
purposes. Fifteen percent of
our operations in South Africa
are now owned by the BBBEE
Trust. The Trust also includes an
annual bursary program, with
employees acting as mentors to
help candidates develop their
skills and future careers at ERM.
Our recent BBBEE rating audit,
which was based on our FY12
performance, resulted in ERM in
South Africa being categorized
as a Level Four Contributor (100
percent recognition level) – an
excellent achievement for a
global business such as ERM.
In addition to our commitment
to BBBEE, we have also been
working with the Makuleke
community in South Africa as part
of our Enterprise Development
project. Our team has been
supporting the community
in its desire to maintain its
lands, which are attached to
the Kruger National Park, as a
conservation area. Over the last
three years, ERM has facilitated
the creation of a Conservation
and Development Framework,
which will help the community
derive financial benefits from its
lands and promote ecotourism.
Right: Participants
at an Aspire skills
workshop in
Asia Pacific.
Mexico City office relocates
to new sustainable building

Our One Planet. One Company. ERM.
strategy provides us with the clear focus
we need to drive long-term success in
a changing and challenging world. The
continued confidence and support of our
clients, combined with our ability to attract
and develop many of the best people
in the industry, meant that FY13 was
another year of strong growth for ERM.
We expanded our services and skills
with the acquisition of two companies:
Rescan in Canada and Zer01 in Australia.
The skills from Rescan will strengthen
further our position in the mining
industry in North and South America.
Zer01 enhances our ability to deliver
Sustainability Information Solutions to
clients in Asia Pacific and beyond.
We also created a team of management
consultants, including existing Partners
and new hires, to help our clients achieve
sustainable operational excellence
in their business performance.
Ensuring service excellence
To ensure that we can meet the needs of
our major clients, we continued to enhance
ERM’s Global Key Client Program. The
Program supports ERM’s commitment to
service excellence and helps us deliver
better outcomes for our clients in an
integrated and consistent manner.
Work for Global Key Clients grew by 17
percent in FY13, reflecting the confidence
that many of the world’s largest companies
place in ERM. We recognize this privileged
position and focus our resources on these
clients to ensure that we maintain their
confidence. By building on this success
in FY14, we will be able to continue to
invest in promoting long-term growth
of our Global Key Client Program.
Putting business ethics first
At ERM, growing our business must
be balanced at all times with our
corporate governance responsibilities
and sustainability goals.
Every project and every employee
are subject to the same high ethical
standards and Code of Conduct. We
strive continuously to ensure that all
of our operations are transparent, and
our people and our business comply
with regulations. During FY13, ERM
once again met its goal of no fines or
non‑monetary sanctions for material
non‑compliance with laws or regulations.
To maintain these high standards, we
audit a sample of business units and
offices around the world each year to
ensure that financial controls, business
conduct and ethics standards and
labor rights are being observed.
Our upgraded Learning Management
System now enables us to ensure that
our people are up to date and aware
of their need to complete mandatory
training modules in key areas, such as
human rights, business conduct and
ethics, and health and safety, which
form the focus of core training for new
employees upon joining the Group.
Good governance is fundamental to ERM
and its ongoing success. By applying
stringent standards to our daily operations,
we continue to expand and evolve our
business professionally and sustainably
and meet our commitment to global
business frameworks, such as the UNGC.
Our
Business and
Commercial
Focus
Delivering a strategy that supports
our commitment to our clients and the
business ethics by which we operate.
Our Business and Commercial Focus
Recognizing outstanding
leadership
In FY13, ERM’s Global Air Quality and Climate
Change Practice Lead, Ken Weiss, PE,
BCEE, was recognized for the outstanding
contributions he has made to the Air and
Waste Management Association (AWMA).
The AWMA is an international non‑profit
organization that aims to help improve
environmental knowledge and decisions
by providing a neutral forum for
exchanging information.
Ken was presented with the Charles W
Gruber Association Leadership Award
for his outstanding contributions to the
AWMA’s grassroots network and educational
mission. Ken’s workshop efforts have
kept the Association and its members
in the vanguard of key environmental
thinking for the past 35 years.
Rescan acquisition
strengthens our
services and skills
For more than 30 years, Rescan
has been delivering multi-
disciplinary environmental services
to clients in the mining sector
and other resource industries.
In September 2012, Rescan
became part of ERM, bringing
with it 170 highly qualified and
experienced employees from
seven offices across Canada.
With a strong safety performance
and proven record of delivery in
the mining sector, Rescan is a
good cultural fit with ERM and our
commitment to sustainability.
Rescan’s service portfolio
includes impact assessments,
licensing and permitting,
environmental management
plans, and marine and biodiversity
studies. With a broad client
base in the mining sector, the
company has worked on a wide
range of projects, commodities
and sites in Canada, including
diamond, silver, gold and copper
mines and potash initiatives.
The acquisition of Rescan has
enabled ERM to expand the
breadth and depth of services
offered by our Canadian
operations and to strengthen
the services offered to clients in
North and South America, and
to mining clients worldwide.
18%constant currency increase in consulting
revenue, including acquisitions
20Global Key Clients supported on global
programs worldwide
Zerofines or non-monetary sanctions for material
non-compliance with laws or regulations
Left: New Partners from across the globe participate in a three-day
Partner Integration workshop in Boston, US.
Right: Carrying out a pre-audit inspection
at Newmont’s Lone Tree Mine in the US.
Right: Ken Weiss,
pictured right,
receiving his award.

16
Sales by Region FY13
 Americas
 EMEA
 APAC
 Specialty Global Businesses*
* Formerly referred to as Niche Businesses
52%
21%
18%
9%
Sales by Industry Sector FY13
Focus Sectors
¢ Oil Gas
¢ Mining/Metals
¢ Power
Other Industry Sectors
¢ Manufacturing
¢ Chemical
Pharmaceutical
¢ Government
¢ Transport
¢ Financial/Legal
¢ High Tech Telecom
¢ Other*
* Other includes aerospace, printing publishing, pulp
paper, textiles apparel, service entertainment
and other
34%
12%
7%
18%
11%
4%
4%
3%
3%
4%
Historical Financial Performance
The Group’s financial performance by region from FY11 to FY13, at actual foreign
exchange rates, is shown below.
US$m
FY11
Actual
FY12
Actual
FY13
Actual
2 Year
CAGR
FY11–FY13
Gross Revenue 681 799 923 16.4%
Net Revenue
Europe, Middle East and Africa 112 129 137
Asia Pacific 98 107 120
Latin America and Caribbean 28 38 39
North America 219 246 302
Specialty Global Businesses1
20 52 60
Total Net Revenue 477 572 658 17.5%
% Growth – Actual 13.5% 19.9% 15.1%
% Growth – Constant Currency2
12.1% 16.9% 17.6%
Total Trading EBITA3
69 85 102 21.5%
% Growth – Actual 19.9% 22.6% 20.2%
% Growth – Constant Currency2
17.6% 19.7% 22.1%
1 Risk business reported as a separate Business Unit within Specialty Global Businesses from FY12.
2 Constant currency calculation is based on FY13 Budget FX rates as used by management for internal
reporting purposes.
3 EBITA: Earnings before interest, tax and amortization.
Financials
FY13 was another successful year for
ERM. At constant exchange rates, we
increased our net consulting revenue
by 14 percent and our trading profit
by 16 percent excluding the impact of
acquisitions made during the financial
year. Including the impact of acquisitions
(from the date of acquisition), we increased
our net consulting revenue by 18 percent
and our trading profit by 22 percent.
We have continued to undertake a
large number of actions to invest in
the current and sustainable future
growth of the business. Among the
actions during the year were:
•• Significant on-going activity in our
key client program, in particular in
our three initial focus sectors: Oil
Gas, Mining and Power. Combined
sales in these three sectors have
grown strongly at over 18 percent
(excluding the impact of Rescan)
compared to the previous financial
year, representing the combination of
our focus and the underlying markets.
The nature and range of the services we
offer in these sectors have continued
to expand to deal with established and
emerging issues in these industries.
Examples of our expanded range of
services include our work on corporate
sustainability strategy, working with
clients on sustainable operational
excellence, providing major capital
project support and supporting
significant developments in the area
of unconventional resources.
•• Expanding our Partner base: In
FY13, we hired 59 new Partners
into ERM and added 15 Partners via
acquisitions. The external recruitment
of experienced professionals into
our business will develop further our
service offerings and deliver the best
outcomes for our clients. During the
year 28 employees were promoted
into the Partnership from our industry-
leading partner-in-training program.
Continued strong financial performance
enables ERM to invest in the sustainable
growth of the business.
Financials
Phil LaDuke
Michigan, US
Phil was recognized for his expertise in
health and safety, being included on the
Power 101 list of the most influential people
in worker safety worldwide, according to
the magazine Industrial Safety and
Hygiene News.
Kristina
Ringwood
Melbourne, Australia
Kristina joined ERM during FY13 to lead the
Global Water Network, which we established
to offer clients help in managing business
critical water risk across both technical and
strategic aspects.
Dr Luke Long
Shanghai, China
In response to client needs for his specialist
skills in managing social issues for
businesses, Luke worked in Australia and
Africa throughout the past year on many
complex projects.
Jeremy Soboil
Cape Town, South Africa
Jeremy is a member of the Sustainability
Advisory Committee, and leads the client
program area. His wealth of experience,
commercial knowledge and passion for
sustainability are invaluable as we seek to
embed sustainability in all that we do.
Ariel Dublo
Buenos Aires, Argentina
Ariel is a Technical Director in the Air Quality
and Climate Change Practice and is
recognized for his air pollution, climate
change and energy management expertise.
Ann Chilton
Austin, US
Ann, our Global Compliance Officer, served on
the Global Reporting Initiative (GRI) Working
Group that developed updated standards for
companies to report on their anti-corruption
and bribery efforts, as part of the next
generation of GRI guidelines (G4).
Our Sustainability Policy and
Approach documents set out
our commitment in seven key
performance areas:
Our People
Health and Safety
Business Conduct
and Ethics
Environment
Community
Thought Leadership
Clients
Environmental Printing Credentials
Hard copies of this Business Review are
printed on paper that is made from 100 percent
post-consumer fibres recycled pulp that is
certified by the Forest Stewardship Council and
processed chlorine-free, using ink free of volatile
organic compounds.
Carbon Neutral Delivery Credentials
ERM distributes hard copies of this report
through certified Carbon Neutral®
delivery
providers.
Design
Emperor Design
Printing and Distribution
The JWP Consultancy
Our world
of sustainability
To find out more about
ERM, our services and
the work that we do
for our clients around
the world, visit
www.erm.com
To explore more about
sustainability at ERM, visit
erm.com/sustainabilityreport2013
People highlights
featured in
our Sustainability
Report include:

The world’s leading sustainability consultancy
ERM has over 150 offices across
the following countries and
territories worldwide:
Argentina
Australia
Belgium
Brazil
Canada
China
Colombia
France
Germany
Hong Kong
Hungary
India
Indonesia
Ireland
Italy
Japan
Kazakhstan
Malaysia
Mexico
Mozambique
Netherlands
New Zealand
Panama
Peru
Poland
Puerto Rico
Portugal
Romania
Russia
Singapore
South Africa
South Korea
Spain
Sweden
Taiwan
Thailand
United Arab Emirates
United Kingdom
United States of America
Vietnam

ERM - Sustainabilitypdf

Recommended

Recommended

More Related Content

What's hot

What's hot (14)

Similar to ERM - Sustainabilitypdf

Similar to ERM - Sustainabilitypdf (20)

ERM - Sustainabilitypdf