Building sustainable business for better tomorrow

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The presentation talks about the importance of sustainability, increasing consumer awareness and focus of buyers, three pillars of sustainability, lessons from Global companies and way forward for a …

The presentation talks about the importance of sustainability, increasing consumer awareness and focus of buyers, three pillars of sustainability, lessons from Global companies and way forward for a denim (textile) manufacturing unit

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  • Brandix Casual Clothing is the first factory in the world to receive LEED platinum status.
  • The COC model consists of companies, which act as value adding intermediaries, between rural producers and Fabindia. These are owned, as the name suggests, by the communities they operate from; a minimum 26% shareholding of these companies is that of craft persons.

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  • 1. 1Developing Sustainable Business For BetterTomorrowInDIGO 201319th April 2013Arindam SahaAssociate DirectorWazir Advisors Pvt. Ltd.
  • 2. 2SustainabilityWhy more important now?
  • 3. 3 Cars amount to three-quarters of alltransportation emissions. At the current rate,the world will be driven on by more than abillion cars in 2030 and a billion more by2050 Over 100 pesticide ingredients are suspectedto cause birth defects, cancer, and genemutations Each year, plastic waste in water and coastalareas kills up to:• 100,000 marine mammals,• 1 million sea birds, and• countless fishSome facts that cannot be ignored…
  • 4. 4 Average temperatures haveclimbed 0.8 degree Celsiusaround the world since 1880,much of this in recent decades Rampant deforestation currentlycauses 20% of the world’s globalwarming by prohibiting the re-absorption of CO2 Arctic ice cover – alreadydangerously thin – is vulnerableto further melting which couldlead to drowning of vast coastallands and islandsSome facts that cannot be ignored…Continued…
  • 5. 5But putting a lot of pressure onthe natural resourcesConsumption of products & services are increasing…
  • 6. 6Consumers Are MoreAware & Concerned…So Are Brands…
  • 7. 7 Well connected with their friends andpeers worldwide More informed about sustainabilityissues and related risk factors Willing to contribute towardsenvironment and society but are timeconstrained Looking for avenues to contributetheir bit and feel satisfied And so they are preferring brands,which are active on ‘Sustainability’platform In a study by the European Union,75% of respondents agreed that theywould pay more for environmentallyfriendly products in comparison toregular productsToday’s consumers…
  • 8. 8 H&M raised close to $ 2.5 Mn of donations by selling itsapparel linked to causes like Haiti earthquake Brands like H&M, M&S and PUMA accepts the secondhand clothes/shoes other than their own brands also to beresold, recycled or reused by charities.Brands are focusing on ‘Sustainability’… Indian apparel brand ‘Being Human’ contributes a portionof its revenue to charity trust. The brand has been built onthis ‘social’ concept
  • 9. 9 Facebook’s network: ~ 1 Billion users Twitter : ~500 million users ~6 billion cell phone users globally this year,with more than 1 billion people using smartphones to access Web applications such asFacebook and TwitterSustainable practices through social media Exchange Educate Engage EnhanceSocial media is playing a major role…
  • 10. 10Textile & ApparelManufacturers ArePutting Efforts…
  • 11. 11 Levis® Water<Less™ Jeans consumes up to96% less water without compromising onthe fashion quotient 172 million liters of water saved so far usingWater<Less™ finishing 13 million products in Levi’s® Spring ’12collection made with Water<Less™ finishingDenim manufacturers concentrating on using less water Killer claims that it took 80 per cent lesswater to manufacture each water saverpair It used Facebook page extensively toconnect this idea with its customers
  • 12. 12Cone denim has gone beyond water saving…A leading supplier of fabric to top denim apparel brandsacross the globe and a pioneer in development of organiccotton denim fabricsCone Denim’s commitment to global sustainability Alternative Fuel: The recycled methane gas, a by-product piped from a nearby landfill, isused to make steam to heat Recycling- Green In, Green Out: Both in the materials purchased and the reusable by-products of manufacturing Energy Conservation: Identify, analyze and implement responsible energy practicesthroughout its operations Water Solutions: Use state-of-the-art waste treatment plant processes which are theindustry gold standard throughout the world Environmentally Friendly Sustainable Cotton: Use sustainable, renewable andbiodegradable resource, unlike many chemical fibers
  • 13. 13 Sri Lanka based Brandix has reduced its carbon footprintby 30 % and fulfilled 75% of its pledge of achieving zerosolid waste to landfill. Gap contributes 50% of the profits from RED clothes tothe Global Fund’s efforts to fight AIDS in Africa Through its ‘Plan A’, M&S has made its stores10 % moreenergy efficient; made its logistics 20% more fuelefficient; reduced food packaging by 16%.Other International companies are also leading the way…
  • 14. 14 Arvind is working with 1000+ villagers inthe deprived region of Vidharbha fororganic cotton farming and working for thedevelopment process at the village level in16 districts of Gujarat Quite a few Indian companies are providingvocational training to the unemployedyouth and absorbing them in their apparelmanufacturing factories Fabindia promotes inclusive capitalism,through its unique COC (community ownedcompanies) model. Presently it links 80,000craft based rural producers to modernurban markets.Indian companies following suit…
  • 15. 15Lesson Needs To BeLearnt From OtherIndustries…
  • 16. 16 Obtained the highest status in the Dow Jones SustainabilityIndex Achieved the highest scores in the Carbon DisclosureProject, both for Carbon Disclosure and for CarbonPerformance. Three key innovation areas :‘care’, ‘energy efficiency’ and ‘materials’EcoVision Sustainability commitments Generate 30% of total revenues from Green Products Double investment in Green Innovation to a cumulative EUR 2 billion Improve operational energy efficiency by 25% and reduce CO2 emissions by 25%compared to 2007 Bringing care to 500 million lives 50 % Improvement in the energy efficiency of Philips products compared to 2009Philips has set steep target for itself
  • 17. 17Sustainability PlatformIs Standing On ThreePillars
  • 18. 18Social• Respect for theindividual• Equal opportunity• Outreach programs• Human rightsEconomic• Consistentprofitable growth• Risk management• Total shareholderreturnEnvironmental• Compliance• Bio-diversitymanagement• Emissions to air• Water/chemicalusage anddischargesThe three pillars of sustainability…
  • 19. 19SustainabilityWay Forward…
  • 20. 20Developing a life cycle approach to sustainability…Logistics OptimizationLower EmissionsCosts SavingsEco DesignProduct InnovationRecycling & Re-UseBiodegradableWaste ReductionNatural MaterialRecycled ContentOrganic ContentLess ChemicalsReduce Environmental ImpactsEnergy EfficiencyCosts Savings
  • 21. 21The industry is likely to move towards…Carbon-centric towater-centricEnergy access toenergy efficiencyPrinted papers todigital developmentIncreased pressurefrombuyers, consumersand legislationWorking together toachieve sustainabilityIncreased innovationand creativity atvarious supply chainsteps
  • 22. 22Put sustainability at the core of your business… Ourworld would be a better place to live in… and thecompanies would pioneer the cause withoutcompromising on their top line and bottom line…A win-win situation for one and all…Let’s build a business on ‘Sustainability’ platform for abetter tomorrow…
  • 23. 23Thank You!Contact Details:arindam.saha@wazir.inM: +91 9810677443Wazir Advisors Pvt. Ltd.3rd Floor, Building 115, Sector 44Gurgaon - 122 002, IndiaT: +91 124 4590300F: +91 124 4590333www.wazir.inThank You…