Doing Business ResponsiblyBombay Chamber of Commerce10th May 2013
Complex Business Environment2GlobalizationDigitalConnectivityAcceleratedConsumptionDisparateProsperityEcological DeclineResource ScarcityLack of GlobalGovernance
Global Sustainability issues- MegaforcesClimateChangeEnergy &FuelMaterialResourceScarcityWaterScarcityPopulationFood Security UrbanizationEco-SystemDeclineDeforestation
Climate Change• World temperatures have risen 0.7 degree C• Developing countries face highest risk• Melting Glaciers• Increase in cyclonic intensity• Reduced crop yield• 1 degree rise adverselyimpacts 6 million tons ofwheat production• Reduction in milk productivity• Sea level rising
Effects of climate change• World temperatures have risen 0.7 deg C• Beyond a threshold of 2 deg C the risk of large scalehuman development setbacks & irreversibleecological catastrophe’s will increase sharply.• The current energy path is not sustainable. In thebaseline scenario CO2 emissions will rise by 130%and oil demand will rise by 70%. leading to avg.global temperature rise of about 6 deg. C
Climate ChangeBusiness activities have had anegative impact on theenvironment.
Resource depletionAvailability of various natural resourceshave become scarcer thus moreexpensive and subject to price volatilityIncreasing manufacturing costs and risks
Stakeholder’s concernsGovernment licence is not sufficient tooperate. You also need social license.
Connected worldMillions are getting connected to theinternet through mobiles and computers
It’s good for businessLarge companies want to protect theirreputationHelps bring down costsOpportunity for innovation
India: Actions on Sustainable Development• Low carbon sustainable growth to be central element of 12thFive Year Plan• India has pledged to reduce the emission intensity by 20-25%of the 2005 level by 2020.• Adopted the National Action Plan on Climate Change(NAPCC).– Eight Missions form the core of NAPCC.• New E-waste rules – responsibility with manufacturer todispose.• National Voluntary Guidelines on Social, Environmental &Economic Responsibilities of Business released by Ministry ofCorporate Affairs– Emphasizing that businesses have to take responsibility sothat their actions lead to sustainable growth andeconomic development.
Did you know?• Of the top 100 economic entities in the world, 40are corporates• Contribution of 50 top consumer goodscompanies and their value chains makes them 6thrank in CO2 emissions. Their footprint is ofGermany & France combined.• Reduction of 25% would be equivalent toremoving emissions from Netherlands.
Role of SMEsGlobally,– SMEs represent more than 90% of business– On an average account for 50% of GDP of allcountries– 60% of their employment– As a sector contribute to 70% of all industrialpollution– In India, 40% of industrial production, 45% ofexports and 9% of GDP.
Key environmental issues– Reduction of energy use• Heating, lighting, office equipment, compressedair,motors, fans and pumps– Reduction in water consumption– Waste minimisation– Reduction of transport costs– Compliance to regulations
Sustainability Thrust Areas19Climate Change• Carbon footprintmapping of L&TOperationsEnergyConservation• Energy audits ofmanufacturinglocations• Improve energyconservation metric• Increase use ofrenewable energyWaterConservation• Adopting zero-discharge approach• Reducing per capitawater consumption• Rain WaterHarvesting (RWH)
Sustainability Thrust Areas20WasteManagement• Material wastereduction• Reduce,Recycle/Reuse,RecoverSafety• Enhance level ofsafety training• Improving Safetyperformance atworkplaceSocial• Mother and ChildHealth care• Education• Skill Building
Resource optimisation-lowering material intensity incontactors604022.113.60102030405060MKMLM-LineMOReduction in gm/A
L&T’s Solar Energy 407 KWGrid Connected PlantRenewable Energy22L&T’s Wind Energy Farm of7.5 MW – South India
ChennaiTalegaonAhmednagarHazira231.2millionsq. ft.ofGreenBuildingspaceGreen and BEE Star rated BuildingsBEE Starratedbuildings
10 Check Dams Constructed in Thane DistrictCollects 20 -30 million liters of water, potential to cultivate 250 acres of land &benefiting 6000 familiesWatershed development