Bcci prasad modak_business&sustainability

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Dr.Modak's presentation from the Orientation Session on Sustainability Reporting on 9th May 2013 at Bombay Chamber.

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  • SPEAKER’S NOTES : Ecological Footprint refers to the amount of land required to meet an average consumer’s needs (food, energy, raw materials, etc.) Consider this: In the U.S., it takes 12.2 acres to supply the average person’s needs. In the Netherlands, 8 acres In India, one acre. The Dutch ecological footprint exceeds the area of the Netherlands by 15 times. India’s ecological footprint exceeds its area by 35 percent.
  • Suzlon Energy Ltd has been ranked the 5th largest in the world, and the largest in India and Asia in terms of market share in 2005. In India, the company has been the market leader for eight years consecutively, installing 53% of the capacity added in 2005.
  • SPEAKER’S TEXT: Design professionals and facility managers were the catalyst for C&A when back in early 90s when they kept asking what C&A was doing to minimize our impact on the environment – especially with regard to source reduction and recycling. People were beginning to understand the consequences of dumping more than 4 billion pounds of carpet in landfills every year. Couple this with the fact that ten years ago, there were more than 18,000 in the U.S. Today, there are less than 1,800. The Triple Bottom Line helped C&A recognize environment sustainability not as “compliance” but as a market opportunity for stewardship. And this in turn led to the dedication that brought on the ER3 breakthrough – that now has three worldwide patents for commercial production of recycled content carpet-- and the Infinity Initiative -- our closed-loop recycling program. Today, we’ve recycled more than 20,000 TONS of waste material (equal in weight to 84 Statues of Liberty) and are working with dozens of leading companies and government agencies in diverting millions of pounds of old carpet from landfills. (Note: You may want to briefly discuss a couple of examples.)
  • SPEAKER’S NOTES: What you do in the next few years will impact future generations, and the next few years could make a profound change in your job performance goals and achievements. The new generation of business leaders understand and implement environmental initiatives – this is a fact. From conservative business magazines like the ECONOMIST to role models from Bill Ford (Chairman of Ford Motor Company ), Carly Fiorina (president of Hewlett-Packard), and Larry Babbio, President and Chief Environmental Officer of Verizon – it is clear that the corporate rising stars will understand and be able to integrate environmental strategies into their overall business strategies.
  • SPEAKER’S NOTES: What you do in the next few years will impact future generations, and the next few years could make a profound change in your job performance goals and achievements. The new generation of business leaders understand and implement environmental initiatives – this is a fact. From conservative business magazines like the ECONOMIST to role models from Bill Ford (Chairman of Ford Motor Company ), Carly Fiorina (president of Hewlett-Packard), and Larry Babbio, President and Chief Environmental Officer of Verizon – it is clear that the corporate rising stars will understand and be able to integrate environmental strategies into their overall business strategies.
  • NOTES : No need to say anything here. Simply let audience have a moment to absorb message.
  • Bcci prasad modak_business&sustainability

    1. 1. Prasad ModakBusiness andSustainability1Dr Prasad Modak
    2. 2. Growth, Business andSustainAbilityGrowth that meets economic, social, andenvironmental needs without compromising thefuture of any one of them.WORLD RESOURCES INSTITUTE2Dr Prasad Modak
    3. 3. TRIPLE BOTTOM-LINES OCI ALENVIRONMENTALECONOMICFinancial, social, andenvironmental effectsof firms policies andactions that determineits viability as asustainableorganization.http://www.businessdictionary.com/definition/triple-bottom-line.html3Dr Prasad Modak
    4. 4. Green Growth, Social InclusionLow Carbon, ClimateResponsive4Dr Prasad Modak
    5. 5. How Important isSustainability to Business?5Dr Prasad Modak
    6. 6. FALLING IN LINE ….Sixty Percent of the Fortune 500companies within the next few yearsexpanded their strategic goals to reflectTriple Bottom-Line issues6Dr Prasad Modak
    7. 7. BUY IN FROM THE LEADERSA survey by consulting firm Arthur D. Little:83% of global business leaders believe theycan deliver significant business value byimplementing sustainable developmentstrategy and operations.7Dr Prasad Modak
    8. 8. What are thechallengeswe face? 8Dr Prasad Modak
    9. 9. Wasteful Use of Resources• Phosphoric acid generates 500% waste gypsum• One tonne of rock to produce one ounce of gold• Five tonnes of wild fish to produce one tonne of farmfish• Energy resources - oil extraction is 35% efficient,electricity production also 35%,• Irrigation uses 80% of abstracted freshwater in theworld, but loses 65% of it before it reaches the farm.9Dr Prasad Modak
    10. 10. POOR FLOW OF RESOURCESINTO PRODUCTS• Only 7% of resources end up in the product• 80% of products are used only once• Many products consume more resources during theuse phase than during manufacture• Most product themselves become waste eventually10Dr Prasad Modak
    11. 11. Ecological FootprintSource: Donella MeadowsU.S./12.2 AcresNetherlands/8 AcresIndia/1 Acre11Dr Prasad Modak
    12. 12. Commercialbuildings createalmost 20% ofGreenhouse gasesin the US.12Dr Prasad Modak
    13. 13. Global Warming13Dr Prasad Modak
    14. 14. New Paradigm on Business and Sustainability14Dr Prasad Modak
    15. 15. “Our corporate reputation, specifically our emphasis onenvironmental issues, has been vital to our ability to attractand retain the best people. When environmental practicesbecome part of a corporation’s code of conduct, it attractscustomers to the company and employees to its jobs.”Larry BabbioVice Chairman and PresidentVERIZON COMMUNICATIONS
    16. 16. “Sustainable development is not only becoming animportant public policy issue, it is becoming asignificant business opportunity.”George D. CarpenterDirectorCorporate Sustainable DevelopmentPROCTOR & GAMBLE
    17. 17. “With GSA purchasing more than $50 billion in goods andservices each year, it’s easy to see how significant theimpact that “greening” GSA can be. We’re a big buyer. Weknow that when we say ‘this would be a good thing to do,’ itmatters to someone who is trying to make a profit.”Dave BarramGSA AdministratorPLANET GSA(U.S. GENERAL SERVICES ADMINISTRATION)
    18. 18. Pressures for change• Competition, Quality, Costs• Resource constraint (water/energy)• New regulations – Waste – Residues - Process –Resources – Products – Rejects – Waste –Residues• Public expectations -Social justice (ILO conventions)• Transparency and Accountability• Risks of reputation18Dr Prasad Modak
    19. 19. RESOURCESPRODUCTSREJECTS WASTERESIDUEPROCESSENVIRONMENTALREGULATIONSBODSLUDGEBLEACHINGWATERUSED PAPERCOATINGCHEMICALS19Dr Prasad Modak
    20. 20. http://www.greensupplyline.com/showArticle.jhtml?printableArticle=true&articleId=192300815Cost of Non Compliance20Dr Prasad Modak
    21. 21. Three Examples ofBusiness in Textile RetailSector
    22. 22. Market leader in UK, but under pressureEnvironmental code for clothing (1993)Exploring EMS for major suppliers:not ISOGlobal Sourcing Principles/ETI (1999)Detailed supplier assessments on product andproductionLaunched organic range (2000)MARKS & SPENCER
    23. 23. Target of Clean Clothes CampaignISO14001 + Code of ConductSOCAM audited c.1,500 units in 1999Child labour priority: TISSONarrower than other codes (eg collective bargaining), butrequires Oeko-TexC & A
    24. 24. Environmental Textile Standard (1992)‘Future Collection’ range -- but only 1%‘Ecological Suppliers’ scheme for hazardsSupplier training and auditingEthical code of conductPilot SA8000 audits for suppliersOTTO
    25. 25. Larger Impacts on SupplyChains on Global BasisConsortium Approach to DrivingSustainability in Business
    26. 26. • Developed in Oct 2004 by companies engagedin manufacturing of electronic products• Participating industries included– Celestica, Dell, Flextronics, HP– IBM, Jabil, Sanmina SCI– SolectronElectronic Industry Code ofConduct (EICC)26Dr Prasad Modak
    27. 27. • The EICC outlines standards to ensure that working conditions inthe electronic industry supply chain are safe, that workers aretreated with respect and dignity, and that manufacturing processesare environmentally responsible• It includes– Original Equipment Manufacturers (OEM’s)– Electronic Manufacturing Services (EMS)– Original Design Manufacturers (ODM) including contractLabourScope of EICC27Dr Prasad Modak
    28. 28. Section A: LabourSection B: Health and SafetySection C: EnvironmentSection D: Elements of an acceptablesystem for conformity to codeSection E: Standards for Business ethicsThe EICC Sections28Dr Prasad Modak
    29. 29. • As a fundamental principle to this code, thebusiness and all of its activities must operate in fullcompliance with the laws, rules and regulations ofrespective countries.• The code encourages it participants “To Go BeyondCompliance”Pushing Beyond Compliance29Dr Prasad Modak
    30. 30. complianceSupportingCorporateObjectivesBusiness developmentand beyondEconomic PerformanceEnvironmentalPerformanceRecent Trends – Going Beyond Compliance30Dr Prasad Modak
    31. 31. The Upside• Increased Sales and Market Share• Strengthened Brand Positioning• Enhanced corporate image and clout• Increased ability to attract, motivate andretain employees• Decreased operating costs• Increased appeal to investors and financialanalysts31Dr Prasad Modak
    32. 32. Increased sales and Market shareEco-lables have helped many industries towiden and secure their markets (CenturyTextiles in India, Misr Mahalla in Egypt)The rural movement of HLL is an outstandingexample of how capacity building of thecommunity helped HLL to acquire a largermarket share of its products in the country.32Dr Prasad Modak
    33. 33. Strengthened Brand Position• It is estimated that more than 70% of theOrchid Ecotel customers are repeatcustomers because of commitment toenvironment• Companies with a public commitment toethics perform better on three out of fourfinancial measures than those without. Thesecompanies also have 18.0% higher profits onaverage.33Dr Prasad Modak
    34. 34. Lowering of Costs – Increasing ofProfitsCase studies and More Case studies• 100 Success Stories – Waste MinimizationDatabase of India• 440 Case studies – International CleanerProduction Information Clearinghouse• TERI Awards, Green Governance Awards ofBNHS/ICICI , Vasundhara Awards inMaharashtra34Dr Prasad Modak
    35. 35. Example 1: Century Rayon• Specific Water Consumption reduced form 90litres/kg to 47 litres/kg• Annual Savings of 7.8 million rupees• Recycling of chlorinated water and reuse ofeffluent water has translated into a annualsaving of 4.3 million rupees.Ref: Case studies of Corporate Environmental Excellence, Cleaneris Cheaper, Volume 3Published by TERI35Dr Prasad Modak
    36. 36. Example 2: Kanoria Chemicals• Kanoria Chemicls and Industries Ltd has made waterconservation by recycling and reducing consumptionin its Ankleshwar Chemical Works Division, Gujrat• The RO system implemented in 2003/04 hasmanaged to recover 530 cubic meter/day and reducefresh water consumption by 19% between 2001/02and 2003/04Ref: Case studies of Corporate Environmental Excellence,Cleaner is Cheaper, Volume 3Published by TERI 36Dr Prasad Modak
    37. 37. WASTE MINIMISATION CIRCLE (WMC)Waste Minimization CirclesRESULTS(Economic Benefits from the Project)(i) Number of WM options identified : 500+(ii) Number of WM options implemented : 220+(iii) Investment made by member units : > Rs. 10 Crores(iv) Annual savings to member units : > Rs. 9.0 Crores(v) Gross Payback period : <14 MonthsSource : National Productivity Council37Dr Prasad Modak
    38. 38. WASTE MINIMISATION CIRCLE (WMC)Waste Minimization CirclesRESULTS(Environmental Benefits from the Project)Reduction in water consumption : 10-35%Reduction in electricity consumption : 15-20%Reduction in fossil fuel consumption : 10-20%Reduction in raw material use : 10-20%Reduction in waste water generation : 10-30%Reduction in Air Emissions (GHG) : 5-10%Reduction in solid waste generation : 5-20%Yield improvement : 2-5%Source : National Productivity Council38Dr Prasad Modak
    39. 39. How is the Triple Bottom-LineChanging Business?39Dr Prasad Modak
    40. 40. Most important factor in forming opinion of a companySurvey: Altered Imagesthe 2001 state of corporate responsibility in India poll40Dr Prasad Modak
    41. 41. THE TRIPLE BOTTOM-LINEA Catalyst for Eco-Innovation41Dr Prasad Modak
    42. 42. For many years community development goals werephilanthropic activities that were seen as separate frombusiness objectives, not fundamental to them; doing welland doing good were seen as separate pursuits.Cutting Edge innovation and Competitive advantage canresult from weaving social and Environmentalconsiderations into business strategy from the beginning.And in that process we can develop the next generation ofideas and markets and employees- Carly Fiorina, Hewlett- Packard, 200342Dr Prasad Modak
    43. 43. Material Innovation by HP• Elimination of the use of mercury in most of HPsall-in-one products by replacing mercury-containing scanner lamps with a new contactimaging technology lamp.• Products are thus less hazardous and compliant• But this also makes the products easier torecycle and adds to competitiveness of HP43Dr Prasad Modak
    44. 44. Recognition and Branding• Recognition for the HP Deskjet 6540 and3740 printers as the 2004 Products of theYear in the Best Green Computing Productcategory for minimal environmental impactand recycling by analog Zone.http://www.hp.com/hpinfo/newsroom/press/2005/051101a.html44Dr Prasad Modak
    45. 45. THE TRIPLE BOTTOM-LINEA Catalyst for Eco-Efficiency45Dr Prasad Modak
    46. 46. ‘There is a difference between a good company anda great company . A good company offers excellentproducts and services. A great company also offersexcellent products and services but also strives tomake the world a better place.’- William Clay Ford, JrChairman of Board and CEO of Ford MotorCompany46Dr Prasad Modak
    47. 47. Fords Escape Hybrid TaxiThe Escape Hybrid offers uncompromisedcargo and passenger volume, and hasproven very reliable and efficient. Some cabshave accumulated more than 150,000 milesof severe use with no major mechanicalproblems, and taxi drivers are saving up to$30 per shift on fuel.http://www.ford.com/en/company/about/sustainability/2005-06/topicsMobility.htm47Dr Prasad Modak
    48. 48. For cities, that fuel savings is the equivalentof 32,000 pounds of CO2 emissions over a year,or 100,000 miles. This savings could make hybrid- electrictechnology well-suited to Mayor Wynns goal of makingAustin the "Clean Energy Capitol of the World."48Dr Prasad Modak
    49. 49. THE TRIPLE BOTTOM-LINEA Catalyst for New Markets49Dr Prasad Modak
    50. 50. International Market of OrganicProductsUS$17.5 billionUS$ 8 billionUS$ 7 billionUS$ 2.2-2.4billion10-20 per centUnited Kingdom(25-30 per cent)• World market• US market• European market• German market• Annual growthrate in majormarkets• Fastest growthrate50Dr Prasad Modak
    51. 51. THE TRIPLE BOTTOM-LINEA Catalyst for Social Equity51Dr Prasad Modak
    52. 52. CorporateSocialResponsibilityExample: L&T52Dr Prasad Modak
    53. 53. Increased ability to attract, motivateand retain employeesThe role of Tata Group of industries inevolving a strategy for housing, healthcare,and basic infrastructure would have proven acostly proposition in the conceptual stage, butafter several years it proved to be a goodinvestment for boosting the companys growthand productivity.53Dr Prasad Modak
    54. 54. Tata Group… (continued)"CSR is not another separate activity. It is an outcome ofbusiness models that go beyond just financial viability.Cost of helping communities to develop becomes thecost of the business-like material or labor. Billions ofpoor people have the potential to become part of themarket if helped. Before making the `poor into a market,business models must build sensitivities and capabilitiesto reach the poor and underprivileged".Anant Nadkarni, GM CSR Tata Group,54Dr Prasad Modak
    55. 55. BNHS Green Governance Awardfor Conservation of FaunaTata Chemicals Ltd. for outstandingcontribution in the protection of theWhale Sharks in Gujarat State throughthe participation of the local community.55Dr Prasad Modak
    56. 56. Godrej & Boyce Mfg. Co. Ltd. for itscommitment to the global community toprotect the mangroves and promotetheir conservation through extensiveenvironmental education campaign.BNHS Award for Conservationand Restoration of Habitat56Dr Prasad Modak
    57. 57. Financing and InsuranceCommunityPushing Agenda on Sustainabilityfor Managing Lending Risks,Guard Reputation and Get ValueAdd
    58. 58. Increased appeal to investors andfinancial analysts• A recent survey by McKinsey &Company confirmed that investors areprepared to pay a premium of morethan 20.0% for shares in companiesthat demonstrate good corporategovernance.58Dr Prasad Modak
    59. 59. • Developed from the efforts of a small number of banksworking in project finance sector convened in London,together with the World Bank Groups InternationalFinance Corporation (IFC) in October 2002• To jointly seek ways to develop a common andcoherent set of environmental and social policies andguidelines that could be applied globally and across allindustry sectors.• This led to the drafting of the first set of EquatorPrinciples by these banks which were then launched inWashington, DC on June 4 2003.59Dr Prasad Modak
    60. 60. International funds of worth 12 trillion arenow under PRI by 70 signatory institutions
    61. 61. Environment today is where theInternet was four years ago – on theedge of a infinite paradigm shift.62Dr Prasad Modak
    62. 62. Life Cycle Thinking is bring in newmodels of G-B-C Consortiums63Dr Prasad Modak
    63. 63. Sustainability is moving in Tiers
    64. 64. Indeed there is a BusinessC$se for SustainabilityMAINSTREAMINGSUSTAINABILITY MAKESA DIFFERENCE65Dr Prasad Modak
    65. 65. Thank you for your attention66Dr Prasad Modak
    66. 66. Prasad.modak@emcentre.comwww.emcentre.com67Dr Prasad Modak

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