NutShell – GCNI Tri-annual Newsletter Dec 2013 - March 2014


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NutShell – GCNI Tri-annual Newsletter Dec 2013 - March 2014

  1. 1. Centred on the theme‘Transformational Leadership: Ways to Sustainability and Success’, the 9th National Convention was successfully conducted on 14th February 2014 in New Delhi at ITC Maurya. The National Convention is a flagship event of the Global Compact Network India (GCNI), organised for the first time in 2004. The National Convention is the largest platform conceptualised by GCNI to bring together opportunities for learning and sharing between the member companies and organisations. 9th National Convention: Transformational Leadership: Ways to Sustainability and Success President’s Desk Dear Members, I am pleased to inform this assembly that our Network completed a decade last year. It was in Nov 2003 when we registered as a Society with a membership of forty two organisations. ONGC, the company that I am privileged to lead was a founder member and since then we have traversed this extraordinary journey together accomplishing many milestones along the way.We organised our first Annual Convention in April 2004 and since then each year we meet our stakeholders to discuss issues that are topical and relevant to the prevailing context. Over this decade we have been the voice of advocacy of the UNGC’sTen Universal Principles that have found traction amongst a small community of visionary business leaders. Admittedly, this club is small because translating commitment to implementation nutShellVol. 5 Issue III Dec 2013 - Mar 2014 T h e G C N I n d i a T r i - annual N e wsl e tt e r “Today the Global Compact, both nationally and internationally, is the largest voluntary corporate responsibility initiative in the world and as India faces challenge to meet the deadlines of the Millennium Development Goals, and as the social, political and economic challenges (and opportunities) — whether occurring at home or in other regions — affect businesses more than ever before, the principles and objectives of the Global Compact have become even more relevant”. in the News in focus Meetings Asia/Oceania Local Network Regional Meeting | 4 Women Empowerment Principles (WEPs) | 4 Global Compact Network India Completes 10 years | 5 Looking Beyond Compliance: Maldives Training | 5 Integrity Pact: From Commitment to Compliance | 6 Asian Business Responsibility Summit-2014 | 6 UN Global Compact - Accenture CEO Study on Sustainability 2013 Insights from CEOs in the Global Compact Network India | 10 Monthly Meetings | 14 Inthisissue 14-1344_UNGCInfograph_A0_Outline_HIGH RES.pdf 2 11/02/2014 12:03:47 PM Contd. on page 3... – Dr. M.Veerappa Moily Union Cabinet Minister, Ministry of Petroleum & Minister Environment and Forests (Additional Charge)
  2. 2. 2 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Inaugurating the National Convention, Dr. M. Veerappa Moily, Union Cabinet Minister, Ministry of Petroleum & Minister Environment and Forests; stated that companies should adopt new approaches to turn sustainability into competitive advantage. The event also witnessed the launch of‘The UN Global Compact-Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India’ newsin the Sustainability in Business Strategy to Drive Transformation’; ‘Leveraging the 2% CSR Bill to Transform India’s Social Agenda’ and‘Leveraging the Public- Private Partnership (PPP) to Enable Transformation in the Social and Environment Space’. The event witnessed participation of more than 400 guests from Corporates, Government, NGOs, Civil Society, Academia, Consulting Firm, Media and other stakeholders, including 50 CEOs, Managing Directors and CMDs from public and private sector together to discuss issues of sustainability and corporate social responsibility in India. Launch of the India Report The National Convention 2014 witnessed the launch of‘The UN Global Compact-Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India’by Dr. M. Veerappa Moily. The UN Global Compact and Accenture, in association with the Global Compact Network India (GCNI) launched the India Report of the global study, which examines the forces shaping companies’approach to sustainability in India, the motivations influencing business leaders and the time that we have managed to replicate the UNGC-Accenture Global Study in India. It is interesting to see how on some levels the thoughts on Indian CEOs completely resonate with the global outlook, whereas there are also stark contrasts on some issues”. One of the major highlights of the Convention was the CEOs Round Table, which witnessed the participation of CEOs, MDs and Chairman from PSUs and the Private Sector who deliberated on the theme of ‘Transformational Leadership: Ways to Sustainability and Success’. The session was chaired by Mr. Peter Lacy, MD, Strategy & Sustainability, APAC, Accenture, Study lead for Global and India study on Sustainability. Other panellists included Mr. Richard B. Saldanha, Executive Director, Blackstone; Mr. Lalit Kumar Gupta, Managing Director & CEO, Essar Oil Limited; Dr. Ramesh Kapur, Chairman & Managing Director, Radisson Blue Delhi; Mr. R.P. Sasmal, Chairman, Vizag Transmission Limited & Director (Operations), Power Grid Corporation of India Limited; and Mr. Kamal Meattle, CEO, Paharpur Business Centre. The post lunch session was divided into three thematic tracks namely‘Embedding potential for transformation for a fast-growing economy like India. The report includes views of 32 CEOs, CMDs, Presidents and MDs from public and private sector, on sustainability. Launch of Business for Peace Initiative The 9th National Convention also witnessed the launch of Business for Peace (B4P) Initiative in India by Dr. M. Veerappa Moily. Business for Peace (B4P) is a business leadership platform launched by the UN Secretary- General Ban Ki-moon during the Leaders Summit 2013 on 20th September 2013 and aims to expand and deepen private sector action in support of peace in the workplace, marketplace and local communities. The India launch of B4P Initiative is the second country launch after Colombia. and the‘Business for Peace (B4P) Initiative’. Concluding the address, the Minister asserted that to create a sustainable future for the future generation the country must secure its energy needs. Talking about the India Report at the Convention, Mr. Sudhir Vasudeva, President, GCNI and CMD, ONGC said,“This is the first
  3. 3. 3 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell ...Contd. from page 1 is a steep challenge that frequently entails charting unmarked territory. Global templates, though certainly useful at a conceptual level, have to be tempered with local imperatives and re-designed to address prevailing ground realities.This entails doggedly staying the course for a ‘hit-and-trial’iterative process to play out as well as time of the senior management that is arguably the biggest investment. The added challenge these leaders face is in making a business case for the sustainability agenda that justifies allocation of additional investment and commitment of resources, especially when competitors remain blithely committed only to profits, with people and planet being relegated to the periphery of their business model. Such inequity in a fiercely competitive environment places great strain and I am therefore grateful to this small albeit select band of leaders who continue to lead the sustainability agenda in this country. Mercifully, this is changing and more business leaders are becoming aware of the need to include the sustainability agenda into their corporate portfolio, supported by initiatives of law-makers in promulgating enabling laws and providing additional incentives that help support formulation of a business case for investment and commitment of resources to company Boards.We can therefore rest easy and stay the course for a gradual movement to evolve and play out. However, we do not enjoy the luxury of time in view of the immediacy of the emerging situation. So what exactly is this situation that defines our context? Musings from Davos, this year where global business leaders congregate annually is a good indicator. For the first time since the global economic crisis overtook us, business leaders focussed on long-term challenges rather than short-term economic crisis.The news is that leaders expressed deep anxiety about the risk to future global prosperity from high unemployment, social tensions that have sparked riots across geographies, widening income disparity between the rich and the poor and the destabilising effects of technological change. Business leaders found income disparity and unemployment being particularly detrimental as they could undermine future demand for consumer goods and housing and good governments to impose tighter regulations on companies. In addition they would lead to social unrest thereby further dampening business opportunity and consumer sentiment. The rich are becoming richer and the poor are becoming poorer. According to the Oxfam Report on political capture and income inequality, released in January: • Almost half of the world’s wealth is now owned by just one percent of the population. • The wealth of the one percent richest people in the world amounts to $110 trillion.That’s 65 times the total wealth of the bottom half of the world’s population. • The bottom half of the world’s population owns the same as the richest 85 people in the world. • Seven out of ten people live in countries where economic inequality has increased in the last 30 years. • The richest one percent increased their share of income in 24 out of 26 countries on which Oxfam had data between 1980 and 2012. This report concludes:“This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems. Instead of moving forward together, people are increasingly separated by economic and political power, inevitably heightening social tensions and increasing the risk of societal breakdown”. The globe is already alive with social unrest. Rebellion and protest from within Sovereign States are emerging as the biggest threats to democratically elected Governments. Regrettably, powers that we are yet to accept this new-age phenomena and still resort to use excessive force to quell what they perceive as rebellion to their authority, alas, with increasingly diminishing returns. Trust in Government Institutions is running dangerously low and a new re-negotiated balance of power between the rulers and the ruled appears imminent. Societal breakdown is a logical corollary if the moot issues fuelling this social unrest are not addressed. The International Labour Organisation in its report in January this year warned, “Employment isn’t expanding quickly enough to keep pace with global population growth, raising the prospect of a jobless recovery”. The connect between technological change and unemployment was evidenced from the interest business leaders at Davos gave to 3D Printing technology that threatens to radically alter the traditional manufacturing practices thereby completely altering not only the manufacturing process but also the entire logistics value chain associated with it. Mainstreaming of such radical technology and advances in traditional automation processes will unerringly lead to unemployment. It is this context that places business leaders’smack in the middle of the global sustainability agenda.The relationship status that emerges from the discussion above is ‘symbiotic’; if we were to define it in one word.We would not need to prepare business cases for each sustainability initiative that we undertake if risk registers of companies uniformly accept these dimensions as being adequately potent in completely destabilising business models unless addressed on priority. Alas! this will take time and what is collectively understood and generally agreed upon in meetings such as at Davos, will not automatically migrate to the individual company’s Board Rooms and impact its business paradigm; at least in the short term. Therefore until this maturity prevails and this thought becomes collective wisdom leading to concerted action, we will need to rely on the‘Transformational Leadership’ of visionary business leaders who will drive the sustainability agenda forward.We are grateful to our Knowledge Partner, Accenture for defining seven elements that constitutes ‘Transformational Leadership’.They are: • Realism & Context: Understanding the scale of the challenge and the opportunity • Growth & Differentiation:Turning sustainability to advantage and value creation • Value & Performance:What gets measured, gets managed • Technology & Innovation: New models for success • Partnerships & Collaboration: New challenges, new solutions • Engagement & Dialogue: Broadening the conversation • Advocacy & Leadership: Shaping future systems These seven elements will be discussed in detail further in the elaborate agenda that we have for this convention today. Mr. Peter Lacy, Managing Director - Strategy & Sustainability: Asia – Pacific Accenture is with us today and we will have the opportunity to listen to him expanding further on these elements and hopefully toward the evening we will be equipped adequately to incorporate them into our business practices.We will also have opportunity to glean insights from‘The UNGC – Accenture CEO Study on Sustainability 2013’ especially for India and this will be formally released at the hands of Dr. Moily. I am also pleased to report that we will launch the Business for Peace Initiative of the United Nations Global Compact in India that was launched globally at the Leaders Summit at NewYork in September 2013.This leadership platform is designed to assist companies in implementing responsible business practices that are aligned with the Global Compact Principles in conflict-affected and high-risk areas. It will also catalyse collaborative practical action to advance peace by leveraging business influence on the workplace, marketplace and local communities. Mr. Georg Kell, Executive Director, UNGC, has flown-in especially to grace this Convention and we will have opportunity to hear him speak further on this Initiative. President’s Desk
  4. 4. 4 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Global Compact Local Network representatives from Asia and Oceania met in Jakarta to discuss implementation of the Global Compact’s Ten Principles in the region during the Local Network Asia Oceania Meeting. The meeting gave an opportunity to learn from the achievements of other Networks and to share experiences on the processes and issues relevant within the regional context as well as to discuss regional challenges and opportunities and to identify potential regional approaches and joint activities. The Asia Oceania Meeting, an annual event, for the year 2013-14 was organised by Global Compact Network Indonesia in association with the members of the local network in Jakarta between 24th February 2014 and 26th February 2014. The meeting highlighted the activities and engagements of the companies in Indonesia and provided opportunity for regional Asia/Oceania Local Network Regional Meeting members of Global Compact to showcase their activities in their respective countries. The event witnessed representation from 40 local networks and 40 Indonesian local network companies. The local network of India, Global Compact Network India (GCNI), was represented by Mr. Pooran Chandra Pandey, Executive Director, who shared the experience and progress of the Indian Network with respect to its activities and engagement with its stakeholders. GCNI highlighted the successful completion of the India Collaboration Lab, the India Sustainability Dialogue, and the 9th National Convention 2014. Mr. Pandey also apprised the participants about the launch of Business for Peace Initiative in India and the launch of ‘The UN Global Compact-Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India’. newsin the Global Compact Network India (GCNI) in partnership with CARE India and UN Women organised two consultations in Chennai and Bangalore on 31st January 2014 and 28th February 2014 respectively, on Women Empowerment Principles. The consultation is organised as a part of the series of consultations that are being organised to promote the adoption of WEPs in India. The consultation was attended by Senior Women Business Professionals and Civil Society Organisation representatives who deliberated on the theme of ‘Corporate Perspective on Women’s Empowerment – Challenges and Opportunities’. These consultations aim at initiating discussion among Corporates on measures to empower women to participate Women Empowerment Principles (WEPs) fully in economic life across all sectors. To achieve this, it is essential to build stronger economies, achieve internationally agreed goals for development and sustainability, and improve the quality of life for women, men, families and communities. The consultations are a part of the project supported by the Foreign and Commonwealth Office of the UK Government to build a stronger commitment to gender equality and women’s empowerment within corporate sector in India. The project builds upon the work that GCNI, UN Women and CARE India have done so far to help strengthen the commitment to and practice of gender equality principles in the private sector through the WEPs Project.
  5. 5. 5 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Global Compact Network India Completes 10 years Snapshot of the Milestones of Global Compact Network India newsin the In taking forward the agenda of facilitating and developing platforms for inter-network collaboration, Global Compact Network India and Global Compact Network Maldives, collaborated to offer the Corporates in Maldives with the opportunity to understand the importance of Sustainability reporting framework and share good practice cases on Sustainability and Corporate Governance from India and Maldives, through a day long training programme. Towards meeting this objective, Global Compact Network India conducted a training programme on Communication of Progress (CoP) Reporting titled‘Looking Beyond Compliance: Embracing Effective Corporate Governance and Sustainability Practices’at Paradise Island Resort, Paradise Island, Malé in Maldives for the Maldivian local network companies on 7th December 2013. The training was conducted by Mr. Pooran Chandra Pandey, Executive Director, Global Compact Network India, and included hands on exercises along with sharing of useful insights and experiences on Sustainability and Corporate Governance. Ms. Azusa Kubota, RR and Coordinator, Programmes and Operations, UNDP Maldives, delivered the opening remarks at the event. The training programme included sessions on‘Reintroduction to Global Compact Principles’,‘UNGC Management Models and Reporting of Performance on the Universal Principles, CoP’,‘Experience Sharing on CoP by Maldivian Companies’and presentation on‘Vazeefage Dhaftharu’by Ministry of Human Resource, Youth and Sports. Looking Beyond Compliance: Maldives Training For Indian business and industry, whether in the public or private sector, corporate social responsibility has always been a paramount concern in policy, operations and social outreach. In the Indian context, it embraces all that which goes into the interaction of companies with the market and the public sphere. The new Companies Act has provided a sharper focus to the meaning and implications of corporate social responsibility. What its letter and spirit call for is a shared mission of care with the agencies, governmental and non-governmental, as well as movements CSR: A Partnered Approach in Implementation; Corporates, B-Schools & NGOs and groups that are absorbed in the labours of socio-economic development and sustainability. Under this background a workshop was hosted by Global Compact Network India, XIME, and CRY on 15th March 2014 in Bangalore, which addressed a wide range of possibilities and issues of CSR in terms of corporate actions and the interface of companies with multiple stakeholders, notably non-governmental organisations, business schools and social entrepreneurs. December 2000 Launch of Global Compact Society November 2003 Registered as a society with 42 organisations April 2004 The first National Convention of Global Compact Society organised March 2005 Global Compact Regional Conclave in Jamshedpur co-organised by Global Compact Society, Tata Steel and CII July 2005 The first Annual General Body Meeting held September 2007 The Knowledge Sharing and Monthly Meetings started December 2008 The Global Compact Society sets up a Secretariat at New Delhi April 2009 The Governing Council Elections are introduced July 2009 The first local chapter launched in Mumbai. Currently, 5 local chapters March 2010 GCNI hosts the Global Compact Asia Pacific Regional Conclave in New Delhi July 2010 Subir Raha Memorial Lecture instituted July 2011 • Global Compact Society becomes Global Compact Network India (GCNI) • The Foundation of the Global Compact’s Collective Action Project awarded to GCNI October 2012 First CEO Forum on Business and Human Rights in New Delhi under the leadership of Mr. N R Narayana Murthy, Founder, Infosys July 2012 GCNI collaborates with UN Women and Care India to initiate engagements around the Women Empowerment Principles (WEPs) December 2012 The membership crosses 100 mark, currently 168 members March 2013 GCNI and UNGC organise the CEO Water Mandate in Mumbai June 2013 Foreign and Commonwealth Office (FCO), Government of UK awards UK Prosperity Fund Project on Ethical Corporate Governance to GCNI September 2013 GCNI collaborates with Deloitte to conduct six city training in Mumbai, Bangalore, Hyderabad, Chennai, Delhi and Kolkata on Sustainability, training about 300 participants November 2013 Global Compact Network India completes 10 years February 2014 ‘The UNGC-Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India’and‘Business for Peace (B4P) Initiative’launched on 14th February 2014 by Dr. M. Veerappa Moily, Union Cabinet Minister, Ministry of Petroleum and Minister Environment and Forests (Additional Charge)
  6. 6. 6 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShellnutShell A two-day International Conference on ‘Integrity Pact: From Commitment to Compliance’ was organised by Global Compact Network India (GCNI) and Transparency International India (TII) on the occasion of UN Anti-Corruption Day (December 9) and UN World Human Rights Day (December 10). The Conference was attended by around 150 compliance/vigilance/procurement officers from key public and private sector businesses of India, as well as delegates from UK, Germany, Rwanda, Malaysia, Bhutan, Bangladesh and Mauritius. In his keynote address Mr. Pradeep Kumar, CentralVigilance Commissioner of India, highlighted, “In India 28% of the Gross Domestic Product (GDP) is spent on some form of Public Procurement Contract, which is higher than the total GDP of some states in the country.” He expressed, “A blend of both curative and preventive measures are needed to control corruption in India, specific steps being e-procurement, simplification of rules, objective evaluation of offers and prudent management of contracts.” The Conference through its various sessions deliberated on aspects related to implementation of Integrity Pact (IP) and its achievements & challenges, roles and responsibilities of Independent External Monitors (IEMs), procurement integrity, transparency in defence procurement, role of ombudsman in curbing corruption, red flags in procurement, whistleblower protection and integrity issues in e-procurement. In addition, the International experts also shared country experiences of public procurement and integrity pact implementation in their respective countries. The participants of the conference recommended broadening the IP base to cover more sectors, businesses and stages of procurement, trainings & secretarial support for IEMs, penalisation for non-compliance of IP, and motivation to private sector businesses to sign the IP. The conference concluded with all the participants taking a pledge to fight corruption and bribery in all its forms and strive to make a better society. Asian Centre for Corporate Governance & Sustainability in collaboration with Global Compact Network India organised Asia Business Responsibility Summit 2014 on 8th January 2014 at International Convention Hall, Bombay Stock Exchange, Mumbai. Two eminent guests Mr. Prashant Saran, Member SEBI & Judge Mervyn King, Chairman, The International Integrated Reporting Council (IIRC), UK, delivered keynote addresses. Judge Mervyn King has the unique distinction of having authored King’s Committee Report I, II and III on Corporate Governance. Dr. Ms. Teodorina Lessidrenska – International Sustainability Consultant from Geneva and several other eminent speakers spoke at the summit. The event also hosted the Asian Centre Awards. The objective of these awards was to raise the quality of Corporate Governance and Sustainable Development and to recognise the companies, Industry Asian Business Responsibility Summit-2014 Leaders & Directors, who are doing exemplary work in improving these standards in their respective companies. Over the years these awards have assumed a coveted status and have become a part of yearly calendar of corporate India. newsin the Integrity Pact: From Commitment to Compliance
  7. 7. 7 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell newsin the United Nations Office on Drugs and Crime (UNODC) and UNCAC Coalition conducted a four day Multi Stakeholder Workshop on the ‘Review Mechanism for the United Nations Convention Against Corruption (UNCAC)’ in Kuala Lumpur, Malaysia. The training was attended by government officials and senior civil society members from Asia Pacific Region. Ms. Jot Prakash Kaur, Research Associate, Collective Action Project represented GCNI at the training. First three days of the training were conducted by the UNODC team whereas the fourth day training was conducted by UNCAC. The four day training for the Civil Society Organisations (CSOs) was divided into two parts, the first part was focussed on creating understanding of UNCAC and the legal implication of various provisions. The second part of the training was designed to make the CSOs understand the review mechanism of UNCAC. The training gave an opportunity for the CSOs to interact with the government focal points (official government contact points for UNCAC Multi Stakeholder Workshop on the Review Mechanism for the United Nations Convention Against Corruption (UNCAC) Anti-Corruption and Applied Ethics in Business Education: PRME Approach Business Ethics and Corporate Transparency: Need for an Emerging Market Discipline review mechanism for UNODC and other associated parties). The government focal points shared their experiences of preparing for the review process which included the draft country report, getting the report assessed by two other parties and review of the report by UNODC and making suggestive changes in the final submission. Global Compact Network India in association with Principles for Responsible Management Education (PRME) and Indus Business Academy (IBA) conducted a half day workshop at IBA’s Centre for C-School in Bangalore on‘Anti-Corruption and Applied Ethics in Business Education: PRME Approach’. Prof. Subhash Sharma, Director, IBA introduced the workshop theme and Prof. Shiv Tripathi, Professor, Mzumbe University, Tanzania, stated that the mission of PRME is to inspire and champion responsible management education, research and thought leadership globally. Prof. Ronald E. Berenbeim, Adjunct Professor, Stein Business School, New York University and Member of PRME Working group on Anti- Corruption in Management Education conducted a brain storming session exploring situations that occur in the normal functioning of any organisation which are legally appropriate but ethically contested. Prof. Berenbeim whilst talking about the challenges of making changes in the present business school curriculum focussed on‘how to integrate practical or applied ethics in business education curriculum, with emphasis on functional problems and what pedagogy should be used to effectively deliver the anti-corruption education without deviating from core programme objectives’. With a vision to embed ethical values in management studies Global Compact Network India, in partnership with Alkesh Dinesh Mody Institute of Financial and Management Studies, Mumbai University announced a Call for Papers in December 2013 and subsequently organised a National Student Conference on ‘Business Ethics and Corporate Transparency: Need for an Emerging Market Discipline’ at Mumbai University Kalina campus on 1st March 2014. The half-day conference had a panel comprising of the five best papers emerging out of the national competition and a unique business-academia dialogue was organised. Industry experts like Mr. Anthony Lobo, CSR Advisor, TCS; Mr. S. Chandran Principle Consultant Business Ethics, TCS; Mr. Sriram Vinjamuri, Head Loan Against Property, Axis Bank; Col. Arvind Gangoly, CEO & Founder, Schedulers Inc.; Prof. Ronald Berenbeim, Adjunct Professor, New York University, USA; Mr. Shiv Tripathy, Professor, Mzumbe University, Tanzania; Prof. Subhash Sharma, Director, Indus Business Academy; and Ms. Chitra Nair, Research Officer, GCNI; were part of this deliberation on business ethics and management studies.
  8. 8. 8 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell storyphoto 50 Plus CEOs in the National Convention CEOs Round Table400 Plus Participants Highlights of the 9th National Convention inaugurated by the Chief Guest Dr. M. Veerappa Moily
  9. 9. 9 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Three Thematic tracks centred on the themes of Sustainability, CSR, and Public Private Partnership (PPP) National Convention Launch of the India ReportBusiness for Peace (B4P) Initiative launched in India
  10. 10. 10 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Sustainability is Key to Business Success, say Indian CEOs Global Compact Network India and Accenture published the India Report. Two thirds of CEOs of Indian companies say that sustainability is very important to the future success of their business, but less than half (44 percent) think business is making sufficient efforts to address global sustainability challenges, according to the India Report. The India Report tilted‘The UN Global Compact – Accenture CEO Study on Sustainability 2013: Insights from CEOs in the Global Compact Network India’, was launched by Dr. M.Veerappa Moily, Union Cabinet Minister, Ministry of Petroleum and Minister Environment and Forests (Additional Charge), Government of India, at Global Compact Network India’s 9th National Convention at ITC Maurya. The report is based on interviews and inputs from a range of CEOs of leading Indian corporations across sectors and draws comparison with the global CEO study on sustainability conducted by the UNGC and Accenture in 2013, the largest survey ever conducted with more than global 1,000 CEOs. For the India Report, the Accenture and UN team gathered the views of 32 prominent Indian CEOs and Global Compact members across sectors. UN Global Compact - Accenture Ceo Study on Sustainability 2013 focusin The report says that among the most significant differences between Indian CEOs and their counterparts elsewhere is the importance of communities in driving business responses on sustainability. Sixty three percent of the respondents to the India survey ever believe that in the next few years communities will have the greatest impact on the way businesses will manage societal expectations, versus 28 percent of CEOs globally and just 7 percent in China. The report also reveals that only 16 percent of the CEO sample in India says consumer demand is motivating them to take action on sustainability, versus the global average of 47 percent. The report emphasises that, in response to the challenges businesses are facing in addressing sustainability issues, 97 percent of the Indian CEO sample says that an increase in efforts by governments and policy makers to provide an enabling environment for the private sector will be integral to advancing sustainability. In sync with the global view, in fact even more pessimistic, only 22 percent of the Indian CEO respondents feel that the global economy is on track to meet the demands of a growing population within global environmental and resource constraints. But that is where the similarities tend to end. Indian CEOs personal belief and conviction aligns more strongly about what they are Insights from CEOs in the Global Compact Network India
  11. 11. 11 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell CSR: A Value Proposition for Business International Symposium on Corporate Social Responsibility Global Compact Network India (GCNI) in partnership with Shikhar Organisation for Social Development organised the 2nd National CSR Summit on 11th February 2014 at Hotel Sofitel, Mumbai on the theme‘CSR: A Value Proposition for Business’. The CSR Summit in Mumbai was second in the series of four planned Summits and attracted all key stakeholders to discuss the significance of CSR as a business proposition for businesses and come out with agenda for action and implementation. Amrita University’s Amrita School of Business in association with the Centre for Sustainable and Responsible Organisations (CSaRO), Deakin University, and Global Compact Network India organised an International Symposium on Corporate Social Responsibility from December 12-13, 2013 with Sustainability, Governance and Effective Outcomes as the central theme. The symposium aimed to foster thought leadership in the highly dynamic and challenging areas of CSR and Sustainability. The key themes discussed at the Summit were – Companies Act 2013; Clause 135: Opportunities and Challenges; CSR and Social Change: A New Paradigm; and Public Private Partnership Approaches in CSR and Sustainability: Myth or reality. It offered the participants from diverse backgrounds like NGOs, Corporate Foundations, Industries, Government Departments, Media and the beneficiaries to develop an understanding of corporate social responsibility for sustainable comprehensive prosperity as per the new Companies Act 2013. The two day symposium was inaugurated by Mr. Ashok Kumar Pavadia, Joint Secretary, Department of Public Enterprises.“The concept of CSR is widely debated but actually understood only by a few and practiced by even less. It is conferences and forums like the IS-CSR that help people understand CSR better and so is a very welcome effort,”he noted. He also highlighted the need for a different approach for developing countries as opposed to the practices followed in developed nations. focusin doing and the effectiveness of it. Around 44 percent of the Indian business leaders surveyed believe that business as a whole is making sufficient efforts to address global sustainability challenges, higher than the global average by 11 percent. Other key findings include: • Sustainability is firmly on the CEO agenda, but many are struggling to make the business case for action. • Local communities and government are driving action on sustainability. • CEOs identify challenges to accelerating progress on sustainability, within their organisations and beyond. • Sustainability initiatives in India are currently centred on community projects, energy and reporting. • As of now, Indian companies have evolved from a philanthropic approach, and their priorities reflect the lens of proximity— focussing on immediate concerns. Going forward, these companies are expected to move to a more integrated sustainability agenda. “The Indian CEOs are dealing with a different situation from the their global counterparts on sustainability issues,”said Peter Lacy, Managing Director, Accenture Sustainability and Business Strategy Services, Asia Pacific, who led the global and India studies.“They need to balance rapid growth with sustainable development within the political and cultural complexities of the world’s largest democracy. According to the report, communities and governments are viewed as the most important stakeholders in influencing the behaviour of businesses in sustainability as opposed to consumers. That will require businesses and policy makers to more effectively engage with citizens to design the most appropriate approaches to sustainability.” The CEO Study also highlights the ability of‘Transformational Leaders’in sustainability to combine market-leading financial performance with sustainability leadership. It reveals approaches to sustainability by Transformational Leaders. For instance, they regard environmental and sustainable issues as important to the success of their business and reject traditional perceptions of sustainability as philanthropy; they engage effectively with investors and NGOs; and they measure and reward employee performance in sustainability. Mr. Sudhir Vasudeva, President, GCNI said,“Indian companies realise that it may not be possible to climb-up the sustainability curve by aping practices adopted by developed nations, due to the unique circumstances and challenges that we face. Therefore, they are exploring various options and tailoring global best practices to fit Indian contexts to find their own unique path toward achieving inclusive growth through the sustainability agenda”. Vishvesh Prabhakar Managing Director – India Operations & Sustainability Services Accenture Dr. Serge Younes Director – India Sustainability Services and Strategy Accenture Pooran Chandra Pandey Executive Director UN Global Compact Network India newsin the
  12. 12. 12 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell Q.1Tell us something about Breathe EasyTM .What role does it play in curbing air pollution? Ans.1 Breathe EasyTM is the Indoor Air Quality (IAQ) division of PBC that takes a holistic approach towards reducing indoor air pollution while boosting energy-efficiency levels of a building. Mechanically, we use air purifiers and scrubbers to cleanse the air. Naturally, we do it with the help of toxin- removing plants.These are houseplants that detoxify the air inside a building. Apart from this, we adopt a 360° approach to ensure that good quality of air is maintained indoors. We recommend use of Green Seal Certified housekeeping chemicals and furniture; zero- VOC (Volatile Organic Compounds) carpets; do not allow anyone to have food outside designated area; seal the building envelope and create positive pressure inside the building.We are able to conform to ASHRAE & WHO guidelines for Indoor Air Quality. When you read newspapers, magazines or any news portal, you get several reasons to worry about the air quality. It is a common misconception that air is only polluted outdoors. In fact indoor air pollution is typically up to 10 times worse than ambient air. At Paharpur Business Centre (PBC), we have realised that with the frightening rise in the levels of air pollution, breathing a gust of fresh air has become a tough challenge for every living being. At PBC,WE GROW FRESH AIRTM . We have developed an effective IAQ system that uses unique and patented bio-technology to purify air and pump mountain fresh air into our building. Breathe EasyTM monitors and records the IAQ readings, everyday. Since 1996, these readings are being uploaded on our website, www., on a daily basis. Breathe EasyTM also provides IAQ solutions to homes and large and small corporate houses. This includes IAQ testing, design, solutions, implementation and consultation. Barun Aggarwal Director (Sales and Marketing), Paharpur Business Centre speaks on Indoor Air Quality (IAQ). “When it comes to pollution, people think only about the pollution that takes place outside. But, indoor air is upto 10 times more polluted than outdoor air”. Q.2 What are the benefits of good indoor air quality? Ans.2 Indoor air quality refers to the physical, chemical and biological characteristics of air inside a building. It can lead to some serious health hazards like asthma; damage to liver, kidney, and central nervous system; lungs impairment, cancer and even death in extreme case. The impact that fresh air brings on the human body are many. Good indoor air quality leads to increased supply of oxygen in the body. This further leads to lesser chances of suffering from sleep apnea, forgetfulness, mood swings, restlessness, fatigue, depressive thoughts and more. At PBC, we are able to lower the instances of eye irritation by 52%; respiratory symptoms by 34%; headaches by 12%; lung impairment by 24% and asthma by 9% in the building because of good indoor air quality [Source: Study by Chittaranjan National Cancer Institute (CNCI), Kolkata & Central Pollution Control Board (CPCB) Ministry of Environment & Forests, GoI]. On average, we take 23,000 breaths in a day and spend more than 90% of time indoors be it in office or at home. Hence, it is necessary that we pay close attention to this. By maintaining good indoor environment, one can stay healthy and live long and healthy. Q.3 How is indoor air quality related to energy efficiency? Ans.3 Indoor Air Quality and Energy Efficiency are inversely proportional to each other. It seems a good idea to conserve energy by sealing or closing the space so that the cooling costs get reduced. But the points to ponder about are, if we keep the building ventilated and allow extra fresh air to move in then there is an increase in the cooling costs as the ambient temperatures can go up to 45°-50°C. However, it does not have to be this way. Let’s take our case as an example.We extract viewINTER fresh air from the optimum height where the pollution level is comparatively less than the air at the lower level. Air during the summer season is very hot or warm and this indicates that the building needs more energy to cool the air in the building for comfort.We have improved this problem too by installing a Heat RecoveryWheel (HRW), designed as per the specifications fixed by ISHRAE,The Indian Chapter of ASHRAE. In PBC, plants purify & improve the quality of air within our building. As a result of which HVAC has to pump in lesser amount of fresh air into the building, so the load on HVAC reduces. Plants that help in removing toxins from the air are grown scientifically in self-regulatory hydropones. Hydropones re-circulate water and nutrients within its system for 10-15 consecutive days nullifying the chances of plants having rotten roots and getting affected by dust, molds, allergens and soil-borne diseases. So, they are not required to be watered on a regular basis nor demand too much of labour. Breathe EasyTM has brought down the energy consumption at PBC by over 20% while improving good indoor air quality. Q.4 Other than IAQ, what are the key sustainability metrics in PBC? Ans.4 Other than IAQ, the key sustainability measures that PBC has taken up are energy, water and waste management. PBC is a BEE 5 Star rated building with an AAhEPI of 28 whr/hr/m2 . This certification was achieved in 2010. Currently, we are at 22 whr/ hr/m2 and we plan to be at about 16 whr/hr/ m2 in the next 3-5 months.This is about 25% of most other commercial buildings of India. At PBC, water has always been considered a precious resource, which is monitored at all inlet and outlet points daily. As water demands and environmental needs grow, recycling & reusing of water plays a major role in PBC, helping us conserve and sustainably manage our vital water resources. We have installed sensor equipment like sensor taps as they help in saving a huge amount of water. Some of the water conservation techniques that we follow are: • Drip Irrigation: The balconies of our building have a large number of plants with
  13. 13. 13 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell In support of United Nations International Strategy for Disaster Reduction (UNISDR), HCC in collaboration with GCNI organised the India workshop on‘Disaster Risk Resilience’on 27th February in Mumbai. It was a day long workshop organised in the premises of HCC. The event witnessed a mix of participations from the UN, Corporate Sector, Public Sector, Government and NGO’s and Educational Institutions. The majority of the participants were from corporates like Siemens, Tata, Mahindra & Mahindra, ACC, HCC, BPCL, SPCL etc. The workshop was facilitated by UNISDR and HCC. The sessions included a pre-lunch session focussed on creating awareness on the Disaster Risk Reduction (DRR) agenda of UNISDR, Government, Corporate Sector and NGO’s followed by an interactive round table group discussion. The post-lunch session included a video conferencing by PWC, UK, on the role of private sector in resilience followed by a break-out session. Disaster Risk Reduction equals Resilient Investment newsin the drip irrigation.This helps in reducing the heating effect in our building and keeping the air cool; hence, in reducing the load on HVAC system. • RainWater Harvesting: PBC collects the rainwater from the roof with a total catchment area of 2,165 sq ft and harvests it, saving 183,000 litres/year – under normal rainfall conditions. • Use of Soap FreeWater for Gardening: PBC has channelised approx. 150 litres/day of soap free waste water to the garden for irrigation. • Installation of Cistern Based 4/2 LitreWater Closet (WC): Flush valve basedWCs in the building have been replaced by cistern based 4/2 LitreWC, thus, saving us 1,302,900 L per year. We have also put conductivity meter in condenser water line for online measurement of water hardness.This helps us minimise unnecessary wastage of water. Daily monitoring and recording of the water consumption at each area of consumption is done in order to control water wastage. Q.6 How economical is implementing IAQ system? Ans.6 Implementing IAQ system is economical. In a central HVAC system, it pays for itself based on energy savings. At home, it won’t cost anyone more than the good health of your family, in fact much less than that. Parameters Avg. of Other Buildings Pbc % Reduction CO2 , ppm 1067.5 488 55 % PM10, µg/m3 689 24 97 % PM2.5, µg/m3 492 14 97 % VOC - Benzene, ppb 150 BDL 99.99 % VOC - Acetaldehyde, ppb 3125 BDL 99.99 % VOC - Acetone, ppb 800 BDL 99.99 % VOC - Toluene, ppb 275 BDL 99.99 % Aerobic Plate Count, cfu 153 26 83 % Fungal Count, cfu 48 <1 99 % Q.5What is current IAQ of PBC? Ans.5 IAQ of PBC is quite high when compared with other buildings. Below is a comparison of the readings of indoor air pollutants present in other buildings and in PBC.
  14. 14. 14 | Vol. 5 | Issue III | Dec 2013 - Mar 2014 nutShell February 2014 The Monthly Knowledge Sharing and Networking Meeting for the month of February 2014 was organised by Global Compact Network India (GCNI) in collaboration with ACC Limited on 28th February 2014 on the theme‘CSR – A Triple Bottom of Planet, People and Profit’. The meeting was chaired by Mr. Rajiv Prasad, Chief Executive, ACC Limited and inaugural address was given by Mr. Pooran Chandra Pandey, Executive Director, GCNI. The presentations were given by Mr. Pratyush Panda, Regional Head, CSR and Ms. Akansha Sharma, Manager CSR, Jubliant Foodworks Limited on the theme of the meeting. December 2013 Global Compact Network India jointly with Engineering Projects (India) Limited organised the December monthly meeting on 19th December 2013 on the theme‘Partnership and Collaboration for Strategic Engagement – Multi-Stakeholder Perspectives’. The meeting was chaired by Dr. S. P. S. Bakshi, CMD, EPIL and inaugural address was given by Dr. Uddesh Kohli, Senior Adviser, UNGC. The event witnessed presentations from Ms. Joanna Pyres, TPI; Mr. R.K. Srinivasan, Technical Advisor, WASH, Plan India; and by Ms. Anjali Godyal, Programme Leader, IRRAD. The presenters highlighted the significance of partnerships and collaboration in critical engagements with the stakeholders. meetingsMonthly • Outcome Report: India Sustainability Dialogue: The Ecological Challenge • Outcome Report: 9th National Convention • Annual Report 2013-2014 • Gobal Compact Network India’s Survey on Women Empowerment Principles (WEPs) • Good Practice Cases on Sustainability publicationsUpcoming March 2014 The Monthly Knowledge Sharing and Networking Meeting for the month of March 2014 was jointly hosted by Global Compact Network India (GCNI) and Jindal Stainless Limited on the theme ‘From Principles to Practice: The Protect, Respect and Remedy Framework’. The welcome address was given by Brig. Rajiv Williams, Corporate Head – CSR, Jindal Stainless Limited. Brig. Rajiv Williams also gave a presentation on the theme of the meeting. A special address on‘Business and Human Rights’ was given by Ms. Caroline Rees, President, Shift & Former Lead Advisor to the Special Representative of the UN Secretary- General for Business and Human Rights.
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  16. 16. About Global Compact Network India Global Compact Network India was formed in November 2003 and was registered as a non-profit society to function as the Indian local network of the UN Global Compact programme. It is the first local network in the world to be established with full legal recognition. Global Compact Network India (GCNI) is a country level platform for businesses, civil society organisations, public sector and aids in aligning stakeholders’ practices towards the Ten Universally Accepted Principles of UNGC in the areas of Human Rights, Labour, Environment and Anti-corruption. At present, the India network ranks among the top 3, out of the 102 local networks in the world, and has emerged as the largest corporate citizenship and social responsibility organisation in the country with a pan India membership of 168 organisations, who have strengthened their commitment to the UN’s Global Compact Principles by becoming proud signatories of the local network, GCNI. Global Compact Network India Office Scope Complex, Core 5, 6th Floor (ONGC Office), 7 Institutional Area, Lodhi Road, New Delhi 110 003 Email: Disclaimer: This publication is intended strictly for learning purposes. The inclusion of company names and/or examples does not constitute an endorsement of the individual companies by the Global Compact Network India Office. The material in this publication may be quoted and used provided there is proper attribution. DesignedandPrintedby:RootsAdvertising The Ten Principles of the United Nations Global Compact Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. membersNEW During the past four months, 11 organisations have joined GCNI showcasing their commitment towards the Ten Universal Principles of the Global Compact. GCNI welcomes its new members and look forward to having a long term partnership in the future. These members are: Organisation Category Membership Accenture Services Private Limited Corporate Lifetime Larsen & Toubro Limited Corporate Annual DLF Foundation NGO Annual Plan India NGO Annual Shikhar Organisation for Social Development NGO Annual Global Hunt Foundation NGO Annual KAARAK Enterprise Development Service Pvt. Ltd SME Annual ARASMIN NGO Lifetime YUVA (Youths Union For Voluntary Action) NGO Annual Indian Society of Agribusiness Professionals (ISAP) NGO Lifetime BIHANI Manufacturing Co. Pvt. Ltd. SME Annual