•   The media have reported Meredith as saying the Commission ‘publicly repeated Dow’s line that it bears no responsibility for Bhopal’. This is untrue: we have never made any kind of statement, supportive or otherwise, on Dow’s relationship to the Bhopal disaster. 

•   So what does the Commission do? We provide assurance over everything from employment in the host boroughs to the catering during Games-time. We analysed green energy choices, argued against the use of HFCs on the Olympic sites, and reviewed waste management plans. Our reports and reviews are not just passed around the Games organisers; they are publicly available for anyone to read, and we actively promote our recommendations. We’re also not afraid to call out organisers and sponsors when we have objective evidence to demonstrate that they are not living up to their sustainability commitments. But we do not set the standards or make the decisions. To put it simply: we are an assurance body, not a campaigning body and the final choices still rest with London 2012.

•   Our Assurance Framework has a procedure for emerging issues. We decided to use this when stakeholders including Amnesty International and Tessa Jowell raised concerns.  While it is beyond our remit to investigate Dow’s legal obligations with respect to Bhopal, we can, and did investigate whether LOCOG’s decision to select Dow as the stadium wrap supplier followed its own stated procedures for sustainable procurement and achieved the most sustainable outcome of the tenders on offer.

•   Our Commissioners play an extremely valuable role. However it has never been our policy to consult with every Commissioner about everything.  We engage Commissioners collectively to set our work program and priorities, and individually for their specialist knowledge on specific issues. As the wrap procurement was a matter of assuring that the most sustainable option was procured, I carried out the core investigations personally as I am the Commission’s procurement expert.  I sought input from Meredith Alexander as well as from another Commissioner with knowledge of both the Indian and English legal systems. Meredith’s advice was received, and I was able to confirm that the outcome of our investigation was supported by the second Commissioner.  While Meredith put forward some very valid views, some of these were not able to be accommodated within the terms of this Commission.  As it happens, a small minority of Commissioners subsequently expressed concerns about the way our conclusions had been presented, but the majority were supportive.

•   We found that Dow’s wrap was the most sustainable material on offer, but this does not mean we endorse any description of Dow as a sustainable organisation. We also found that LOCOG followed its agreed procedures when they selected Dow for the wrap but this does not mean, either, that we would endorse the use of these procedures in future. LOCOG followed accepted good industry practice, and we would argue strongly that industry good practice in this area is no longer good enough. The Commission hopes that the lessons learned as a result of London hosting the Games will represent a step change in how business will be done in the future.

•   The media has inaccurately described the Commission as an ‘Ethics Commission’ or an ‘Ethics Champion’. This is incorrect. However, this experience makes it clear that this ‘ethics champion’ role will be necessary and we have already advised that future Olympic and Paralympic Games incorporate new rules to ensure that sponsorship is inexorably linked to Olympic and Paralympic values and ethical behaviour. We hope that this recommendation is adopted and will be pushing to ensure that it is.

Shaun McCarthy

Chair, Commission for a Sustainable London 2012

“I am grateful for the work and support that Meredith Alexander has provided to the Commission. I fully respect her decision to resign so she can shine the spotlight on the plight of the victims. I share Meredith’s views that what happened in Bhopal is an appalling human tragedy. I believe that this issue has raised wider questions about corporate behaviour, past and present, and how ethical issues are effectively factored into decision making.

As per our remit, the Commission did provide retrospective assurance of LOCOG’s procurement of the stadium wrap and found that they had followed their processes and had opted for the most sustainable solution available out of the six companies that tendered.

The issues raised by Dow Chemical’s supply of the wrap challenges organisations to consider new approaches that incorporate a broader range of ethical issues into decision making. This is why we agreed at our Commission meeting in January, at which Meredith was a constructive contributor, to address this in our forthcoming Annual Review. It is disappointing that Meredith will not be working with us to progress thinking in this area.

The Commission has always adhered to the highest standards of independence consistent with its remit to provide strategic assurance on the extent to which the Olympic delivery bodies are living up to their promises in respect of sustainability. It has exercised its role and influence across a range of issues including energy, waste and merchandising amongst many others since its formation five years ago.

In addition, as part of our role and legacy, we take responsibility for understanding the lessons from the London Games including in relation to the work we do, our remit and our scope. It is my hope that all the bodies in the Olympic and Paralympic family will join the Commission in openly sharing the lessons learned and help influence organisations such as the IOC to drive best practice in sustainability at future Olympic and Paralympic Games.”

~ ends ~

Points of Clarification: 

There has been a number of inaccuracies in the subsequent media coverage of Meredith Alexander’s resignation which are clarified below:

• Neither the Commission not its Chair, Shaun McCarthy, has the power to approve or authorise sponsorship deals. This power lies solely with LOCOG at a UK level, and with the IOC at an international level. The decision to select Dow Chemical as the stadium wrap supplier was made without consulting the Commission.

• The Commission has never at any point expressed support for any statement made by Dow Chemical relating to the Bhopal and Union Carbide disaster. The Commission’s remit prohibits any public comment on the wider corporate actions of Olympic sponsors as our remit is confined to the delivery of the 2012 Games programme.

• The Commission’s independent investigation into Dow Chemical focused primarily on the question: whether or not the stadium wrap supplied by Dow Chemical offered the most sustainable solution in the context of that procurement. This investigation was conducted several months after the decision was made by LOCOG to appoint Dow Chemical as the wrap supplier. The Commission’s conclusion was that LOCOG had adequately followed its own sustainability procedures, and that of the six companies tendering for the wrap, Dow’s score for sustainability was the highest.

• The Commission also reviewed LOCOG’s decision in the context of its risk and due diligence procedures and found they were followed. However, this experience has demonstrated that current industry practice, of which LOCOG is reflective, is not good enough and lessons must be learnt for the future.

• The Commission has separately advised that future Olympiads adopt measures to ensure that corporate sponsors at all levels are more actively engaged with the values of the Olympic and Paralympic Games. It is the Commission’s general expectation that all companies engaging with the Games should practice the principles of good ethical behaviour throughout their business.

• Shaun McCarthy, Chair of the Commission for a Sustainable London 2012, was paid £68,259.00 for 130 days work between October 2010 and September 2011 (the latest period). This is based on two day rates of £520.20 (October to March) and £530.60 (April to September), this is an increase of 2% in accordance with the indexation principles contained in his contract. He is employed as an independent advisor and does not receive any of the usual employment rights such as sick pay, holiday pay and pension. He contributes 130 days per year to the role.

• All Commissioners, including Meredith Alexander, are officially appointed on behalf of the Olympic Board by the Mayor of London on the recommendation of the Chair of the Commission. Representatives of the Olympic delivery bodies are part of the interview panel along with Shaun McCarthy.

The Commission for a Sustainable London 2012 is seriously concerned about the alleged breaches published in The Sun today in relation to workers’ rights and working conditions in a manufacturing facility in China responsible for making Olympic and Paralympic merchandise.

The Commission will be working with all relevant stakeholders to ensure this issue is resolved quickly, decisively and transparently and we will be making further comment in the coming days.

We have now completed the review and our response to Ms. Jowell forms the Commission’s position. The response can be read in full here.

We are satisfied that there are adequate plans for bike parking at the Olympic Park and that all reasonable efforts have been made to enable people to reach venues by walking and cycling wherever possible. The London 2012 Active Travel website adequately signposts people to other information sources including a map of private bike hire venues and to the Transport for London Active Travel website.

The Commission has previously noted that spectators travelling to the Games will be allocated free public transport and that this principle should be extended to spectators wishing to hire cycles.[i] We have now been advised that this would be logistically very costly and therefore is not a practical solution. 

However, we note that the Mayor’s cycle hire scheme is already free of charge for the first 30 minutes, after an initial fee is paid for access to the scheme of £1 per day. We understand that the majority of casual users of the bike scheme are currently using and returning bikes within the 30 minute period and therefore are paying the access fee but not a time-based rate for hire. 

Games-time visitors can therefore be confident that they will be able to access the bikes for short trips across London without paying a time based hire fee. While cross-London journeys would be difficult to complete within the free 30 minute period, we accept that casual users have the option of breaking their journey into more than one bike hire period.

The Commission has sought clarification from London 2012 delivery bodies on whether the Mayor’s Hire Scheme is being extended to enable spectators to cycle to the Games using these hire bikes, and what other measures are being considered to assist cyclists at Games-time.

We have been advised that planning permission is being sought to enhance the scheme to:

• provide additional bikes
• extend the scheme eastward and intensify the existing scheme
• install additional docking stations across the extension and as part of the intensification programme
• provide additional docking stations that are potentially within walking distance of the western side of the Olympic Park

We understand that this proposal is the subject of negotiations as part of the planning approval process. We have been assured that maps and guides will be updated as appropriate once the outcome of these negotiations is known and subsequent installation work has been completed.  We will look forward to reviewing these revisions in the spring of 2012.

The contents of this letter have been posted on Ms Jowell’s website, and published here.

The Commission has provided an interim response to Ms Jowell, which is also published here.

Nonetheless, the Commission is speaking to key parties to fully understand the origins of these concerns, and we will form our advice to the 2012 Games’ organisers accordingly. Where we consider it necessary and appropriate, we will make a further public statement in due course.

The Commission’s expectation at all times is that any company that embraces the Olympic and Paralympic values should be an ambassador for these in all aspects of their business.

The Commission supports the application of the Sustainable Sourcing Code throughout the London 2012 programme and continues to be impressed with LOCOG’s commitment to using FSC certified timber wherever possible. However we are aware that Team venues including team ‘houses’ and training venues are beyond the remit of LOCOG and therefore not required to apply the Code. The Commission is also not able to assure the activities of National Teams for the same reason.

The Commission urges National Governing Bodies and National Teams to meet the sustainability aspiration and intent of the London 2012 Games when selecting and commissioning venues for their stay in the UK during and in the lead up to the 2012 Games. We encourage UEL in this case to clarify the source of timber used in the basketball facility and whether it has been certified under either the PEFC or the FSC scheme. We also encourage PEFC to investigate whether timber they have certified as sustainably sourced has in fact been sourced from virgin old-growth Tasmanian hardwood forests.

In our 2008 Annual Review we recommended that “All users of the London 2012 Brand should be required to demonstrate how they will contribute to the London 2012 Sustainability Plan and relevant objectives”. It is therefore important that teams and associated organisations are mindful of these high standards, particularly in sustainable procurement.

To view the related story, see: ’Olympic athletes to train on timber from ‘endangered’ forests’, Independent, 08.11.2011 http://www.independent.co.uk/environment/green-living/olympic-athletes-to-train-on-timber-from-endangered-forests-6258751.html

Shaun McCarthy, Chair of the Commission for a Sustainable London 2012, said:

“LOCOG has had success in making standard merchandise more sustainable, but not in making sustainable merchandise standard. London 2012 has been successful in changing the behaviour of the industry, but needs to seize the opportunity to change the behaviour of the consumer.

“We recognise that there are some sustainability issues which LOCOG can’t solve on its own; however, we believe that by fully engaging with LOCOG’s sustainable and ethical sourcing codes, London 2012 licensees can adopt more sustainable behaviour on a permanent basis. This will create a lasting legacy for UK and international brands and will have commercial as well as environmental and social benefits.

“We recognise that labour standards are an issue for the industry, and welcome LOCOG’s efforts to address this. However, more can be done by licensees, particularly in the area of public disclosure of factory locations”.   

Download the review

The key findings of the review are:

1. LOCOG’s sustainable merchandising efforts are, to date, the best the Olympics and Paralympics have ever seen. LOCOG is setting new standards for the event and retail industries to follow. These standards include the Sustainable Sourcing Code and the Diversity and Inclusion Business Charter, which the Commission considers representative of best practice in the event industry. The application of these standards will be critical to the success of the programme.
2. LOCOG’s merchandising standards have already made a difference. Some licensees are already changing the way they make and package their products. For example, the Stella McCartney for adidas Team GB range includes 5% organic cotton; Hornby is removing PVC from their packaging, and Touch of Ginger is remodelling its packaging to make it easier to recycle.
3. The Commission recommends that LOCOG works with licensees to showcase improvements to sustainability. Traditionally, many of the industries involved in making merchandise have not sought to significantly address sustainability in their products and supply chain. Therefore we recommend that a series of case studies be developed using examples from London 2012 merchandise to help move these industries forward. These should demonstrate successes in areas such as ethical supply and environmental standards.
4. In principle, the Commission believes that companies should publically disclose all supply chain locations. However, in practice this may be complex and unmanageable for LOCOG to achieve with its limited lifespan. This is why the Commission congratulates adidas, the only partner to fully disclose the location of all factories in its direct supply chain supplying London 2012 merchandise and official sportswear. The Commission also urges LOCOG to encourage more partners and licensees to follow adidas’ lead and disclose their factory locations.
5. LOCOG must better communicate its sustainability standards to shoppers. While LOCOG’s efforts to make its merchandise more sustainable have been excellent, consumers may not realise this when they purchase products. For example, when a customer buys a product, it should be possible to tell them more about the sustainability story of that product.
6. The Commission believes companies which adapt to meet LOCOG’s sustainability requirements will operate more efficiently and will have a competitive advantage. Many event contracts now require companies to meet sustainability standards: companies which meet LOCOG’s criteria will therefore have an advantage. Changes such as reducing packaging can also make a company more cost-efficient as well as more environmentally friendly.
7. Their complaints and dispute resolution process for supply chain problems puts LOCOG amongst those at the forefront of action in this area. This sets an example for future Games, although the process must be actively publicised throughout the supply chain, right down to the workforce.

There is evidence that this is starting to happen but there are some emissions that are unavoidable, such as those caused by air travel, motor vehicles and temporary generation.

BP had committed to offsetting operational emissions from the fuel they supply and we are pleased to see that they have gone beyond their formal obligations to offer a free offsetting service to ticket holders.

Some offset schemes are not all they appear to be but the evidence presented to us by BP suggests they are using good practice to ensure that only genuine and auditable carbon offsets are used.

We congratulate BP on this initiative, one of many to be implemented by commercial partners determined to help deliver exemplary sustainable solutions to London 2012.