SUSTAINABILITY

- THE ONLY WAY FORWARD

Presentation
By
CA. Anil Sharma

Facets of governance

Fulfilling responsibilities (what)


Performance (how)
Facets of governance What?

Economic returns,
Legal and regulatory compliance,
Business continuity,
And
Protection of interest of all the
stakeholders.
Facets of governance How?
Vision,
Innovations and initiatives,
Business policies and procedures,
Business ethics and fairness,
Transparency and disclosures,
Accountability
And
Maintaining balance between economic and social
goals.
Sustainability defined

The natural resources are not inexhaustible and the
development process should be aimed to meet the
needs of the present generation without
compromising the ability of future generation to
meet their own needs.
Brundtland Commission of UN Report 1987.
Sustainability defined

Economic development, social development
and environmental protections are inter-
dependent and mutually reinforcing pillars of
sustainable development.

UN World Summit, 2005
Key Current Sustainability Issues
Climate change
Water availability/quality
Sustainable consumption
Consumer preferences
Human rights
Workers rights

Sustainability is not simply about green
economy, it is about the whole economy.




Goals of Sustainability

Triple Bottom Line Approach
People
Planet
Profit


TBL Approach- People
Fair and beneficial business practices
towards:
labour
community
Region

HUMAN CAPITAL

TBL Approach- Planet
Sustainable environmental policies

Reduction of ecological footprint
Conducting life cycle assessment
No ecologically destructive practices

NATURAL CAPITAL
TBL Approach-Profit
Economic value created by the organisation
after deducting the cost of all inputs
including the cost of the capital tied up.

Real economic impact the organisation has
on its economic environment.

ECONOMIC CAPITAL


Entrepreneur
vs.
Social entrepreneur
ENTERPRENEUR:
Engine of growth
Harnessing opportunities
Innovation to fuel economic

SOCIAL ENTERPRENEUR:
tapping inspiration and creativity
Courage and fortitude
Seize opportunities that challenge and forever change
established but fundamentally inequitable systems.
Social entrepreneurs

Maria Montessori.
Muhammad Yunus Grameen Bank.
Green Hotel by ITC.
E-Chopal by ITC.
Waste management to power generation
by A to Z Maintenance Co.
Azure Power project at Awan in Amritsar.
Standards for sustainability
Good things to do vs. Things to do.

Regulatory mechanism provided minimum
benchmark.

Corporate Social Responsibility or Corporate
Social Requirement.

CSR as mission rather than as a challenge.
Emerging Corporate Leaders
Driving Sustainability
A Survey conducted by Globe Scan and
SustainAbility in March 2009 on 1600 experts.
A credible public commitment to
sustainability grounded in the companys
core values is cited as a key factor behind
experts choice.

Conclusions of the Survey

1. Sustainability strategies appear to be
driving the necessary change.

2. Companies that integrate sustainability
as a core value are also expected to
follow through with more sustainable
products and services.


New sustainability era on the horizon
Businesses will have to grapple with a new
concept of value that
moves beyond a focus purely on profit,
incorporates non-financial metrics, putting a new onus
on the ability to measure and communicate progress.

Businesses will need to
measure both positive and negative impacts of business
on society,
track and manage sustainabilitys impact on core
business drivers and metrics and
embed sustainability in individual performance
frameworks for managers across their organizations.


Sustainability- important for future
success
Survey conducted by Accenture in 2010.

766 UN Global Compact member CEOs plus
more than 50 civil society leaders were
interviewed.
Core issue was whether rising global
competition, technological change and the most
serious economic downturn in nearly a century
has any impact on commitment to the principles
of sustainability.
Findings of the Survey
93% CEOs see sustainability as important to their
companys future success.
72% of CEOs see education as the global
development issue most critical to address for the
future success of their business. Climate change is
second with 66%.
91% of CEOs report that their companies will employ
new technologies to address sustainability issues
over the next five years.
58% of CEOs identify consumers as the most
important stakeholder group that will impact the wy
they manage societal expectation,



Findings of the Survey
Broader set of issues are starting to appear on
the corporate radar as of increasing concern:
- Resources scarcity (water in particular).
-Health
- partnerships and collaboration are a critical
element to sustainability issues, multi-
stakeholder partnerships to address
development goals.

Financing by Financial Institutions
The Equator Principles:
A financial industry benchmark for determining,
assessing and managing social and environmental
risk in project financing.

The Equator Principles Financial Institutions
(EPFI) have adopted these principles in order to
ensure that the projects finance are developed in
manner that is socially responsible and reflect
sound environmental management practices.

The Equator Principles
EPFIs will only provide loans to projects that
conform to the following principles:
1.Review and Categorization
2.Social and Environmental Assessment
3.Applicable Social and Environmental Standards
4.Action plan and Management System
5.Consultation and Disclosure
6.Grievance Mechanism
7.Independent Review
8.Covenants
9.EPFI Reporting

Performance Standards of IFC
PSs define clients roles and responsibilities for managing
their projects and the requirements for receiving and retaining
IFC support:

PS1- Social and Environment Assessment
PS2- Labour and working conditions
PS3- Pollution Prevention and Abatement
PS4- Community Health, Safety and Security
PS5- Land Acquisition and involuntary Resettlement
PS6- Biodiversity Conservation and Sustainable Natural Resource
Management
PS7- Indigenous People
PS8- Cultural Heritage



Green Consumer Behaviour
National Geographics 2009 GREENDEX
Survey to monitor consumer behaviour that
have an impact on the environment.
Consumers in 17 countries surveyed in 65
areas including:
Housing
Transportation
Food
Household goods


Findings of National Geographics
2009 GREENDEX Survey

1. Consumers recognise the connection
between their actions and environment.

2. Increase in green consumer behaviour
worldwide.

3. Consumers in India and Brazil top the
Index.


Sustainability an opportunity
rather than a challenge
Finding of Survey The Sustainability
Survey Poll on Climate Change

Tremendous growth opportunities in the areas
of renewable energy and low carbon products
and services.
Ideal opportunity for businesses to carve out
new sources of competitive advantage and
market leadership.
Sustainable Growth Strategy
AIM:
to achieve top-line growth and bottom line
results
MEANS:
Durable corporate venture strategy,
Improving processes,
Continuous improvement culture and
Radical innovations.

Case Study- Tata Power
Sustainability Commitment:
Displacement, rehabilitation and sustainable development.
Project:
Community Engagement Strategy Development.
Approach:
Research and analysis on current regulatory environment around
land acquisition and settlement in India, civil society positioning and
global corporate best practices
Consultation with managers and key civil society stakeholders.
Results:
Development of actionable steps and guidance structures.
Decision to apply community engagement practices across all sites.



Case Study- DU PONT
Sustainability Commitment:
Commitment to achieve sustainable growth and top the Green
companies list.
Project:
Stakeholder engagement- testing the waters.
Approach:
Understanding current priorities of the company
Role of stakeholders in informing business decision making
To decide priority of chemicals, agriculture, biotechnology and
nanotechnology.
Steps to be taken to embed stakeholders engagement in the business
Results:
Confirmation that market is already moving against hazardous
chemicals
Opportunities in areas other than chemical with radically lower
environmental footprints.

Case Study- HUL
Sustainability Commitment:
Meeting everyday needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of life.
Project:
Identify and better understanding of expectations of stakeholders
Identify issues that are material to stakeholders
Benchmark its strategy.
Approach:
Desk research on issued for FMCG sector
Engagement of Internal management and external thought leaders.
Reporting strategy
Results:
Identified five key platforms: Health and nutrition, Empowerment of
marginalised community through vocational education, Water
conservation and reducing greenhouse gas emissions.

Sustainability- the only way forward
Companies like any living organism, must become
learning organisations that change and adopt to
suit their changing environment.


If you dont practice the change management
that looks after the future, the future will not
look after you.
Bill Gates



THANK YOU.

Contact me at:
anil54@gmail.com
098-113-20203