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HERA uses the Living Standards Framework (LSF) to assess economic contribution of the metals industry, as well as its own performance.

The LSF was developed by Treasury to assess inter-generational wellbeing based on the growth, distribution and sustainability of four interdependent capitals – human, social, physical and financial, and natural.

 

The first industry to assess our performance against the LSF

In 2018, we commissioned consultancy company Business and Economic Research Limited (BERL) to use the LSF to assess the metal industry’s contribution to the NZ economy. In doing so, the metals industry was the first to use the LSF for this purpose.

The results showed that the metals industry is a strong contributor to the NZ economy and the living standards of New Zealanders. They also identified opportunities where we can start to add more value and better communicate what we already do add!

  • Human capital
    Beyond providing tens of thousands of livelihoods, we contribute to the development of skills and knowledge in the workforce though the provision of traineeships and apprenticeships. As well as ongoing training and development for employees in subsequent stages of their careers. Research and development and standards development activity takes place in all parts of the industry (i.e. in metals manufacturing and in the various supporting activities). It’s also evident that we have effective mechanisms for sharing the outcomes of R&D and promoting adherence to existing and new NZS and AS/NZS Standards. These mechanisms, combined with collaboration between players in different parts of our industry, enhance the value of their outcomes.
  • Social capital

    We’re making significant philanthropic contributions. We are also supporting our local communities in other ways, such as sports sponsorship. In addition, we promote trust within the industry, our customers and the general public, through the development and implementation of NZS and AS/NZS standards and quality frameworks, such as the SFC Scheme.

  • Physical and financial capital
    We help develop and sustain Aotearoa in this space. This is primarily through the supply of vital goods and services used in investments in transport infrastructure, construction and building. Beyond their volume or value, our industry adds to the quality of the investments by increasing the resilience of the built environment and by enhancing the performance of structures and buildings.
  • Natural capital

    We help to safeguard natural capital by working to reduce raw material inputs and harmful emissions, promoting and adhering to environmental standards, and conserving air and water quality. Perhaps most conspicuously, the industry safeguards natural capital because the principal metals it produces and uses can be recycled over and over again, without degradation.

Aligning to the LSF

We want our members to be familiar with this framework as it is an instrumental part of Government policy and administration.

This starts with using the LSF terminology when communicating with customers, stakeholders, MPs and the general public.

We also need to make sure that New Zealanders understand the importance of our industry and how we make a difference to their lives – both currently and in the future.

Since commissioning BERL to report on our performance, a lot of our projects and research have been intertwined with the LSF.

 

For example:

 

Where to from here?

If we’re to genuinely transform industry through the lens of the LSF, then we have to keep holding the mirror up to ourselves.

That is why we’re currently working with BERL to prepare an updated LSF assessment of Steel’s contribution to the economy – due for release April 2021.