Inclusive Growth – Is Sustainability the Answer ? | Dr. Yogendra Saxena, Tata Power


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Global HSE Conference | Sept 26 - 27 | New Delhi, India

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Inclusive Growth – Is Sustainability the Answer ? | Dr. Yogendra Saxena, Tata Power

  1. 1. …Message Box ( Arial, Font size 18 Bold) Inclusive Growth – Is Sustainability the Answer ? Dr. Yogendra Saxena September 26, 2013
  2. 2. Tata Power- An Introduction • India’s largest integrated private power utility company • Presence across the entire value chain • Founded in 1906 to supply power to Mumbai – First hydro plant commissioned in 1915 – Set up thermal power plants in Mumbai in 1960s • Thrust on renewable energy sources including hydro, wind, solar and …Message Box ( Arial, Font size 18 Bold) 2 • Thrust on renewable energy sources including hydro, wind, solar and geothermal • Successful Public Private Partnerships in generation, transmission and distribution
  3. 3. Our Vision & Mission To be the most admired and Responsible integrated Power Company with a global footprint, delivering sustainable value to all Stakeholders. Leadership with Care!!! …Message Box ( Arial, Font size 18 Bold) Leadership with Care!!! Care for Environment, Shareholders, Customers, Community, People, Employees, Partners & Suppliers
  4. 4. History – Sustainable Development 1972: UN Stockholm - Declaration of the United Nations Conference on the Human Environment 1991-92:Beginnning of Voluntary Environment Initiative i.e. Environment Management Systems (ISO 14001- Mid 90s) 1987: United Nations released Brundtland Report, which defined Sustainable Development as: …Message Box ( Arial, Font size 18 Bold) “Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” 1992: Earth Summit, Rio Conference Over 178 Countries adopted the recommendations of Earth Summit Agenda 21: Better know as The Rio Declaration on Environment and Development having 27 principles that express the rights and responsibilities of nations and human development
  5. 5. History - Sustainable Development At the 2005 World Summit, it was noted that the concept requires the reconciliation of Environmental, Social equity and Economic demands – the "three pillars" of sustainability or (the 3 E's). EMERGENCE OF GLOBAL REPORTING INTIATIVE …Message Box ( Arial, Font size 18 Bold) The Global Reporting Initiative (GRI), The Netherlands, is working towards a sustainable global economy by providing Sustainability Reporting Guidelines. GRI has pioneered and developed a comprehensive Sustainability Reporting Framework that is widely used around the world. The Framework enables all organizations to measure and report their Economic, Environmental, Social and Governance performance – the key areas of Sustainability Reporting better known as TBL.
  6. 6. Sustainable Development or Sustainability Transition Growth Development Well-being …Message Box ( Arial, Font size 18 Bold) Well-being Inclusive Wealth Inclusive Investment Inclusive Growth
  7. 7. Innovation Capital efficiency Risk Management Total Shareholder Return Resource efficiency Product Stewardship Lifecycle Management Product to Services Economic Growth Socio Eco- Efficiency Job Creation Skill Enhancement Local Economic Impacts Social Investments Business Ethics Triple Bottom Line (TBL) …Message Box ( Arial, Font size 18 Bold) Clean Air, Water and Land Emission Reduction Zero waste releases and Spills Biodiversity Diversity Human Rights Community outreach Indigenous Community Labour Relations Product to Services Environmental stewardshipSocial progress Sustainability Socio Economic Eco- Efficiency Socio- Environmental Business Ethics Security Safety And Health Environmental Regulations Global Climate Change Access to Potable water Environmental Justice
  8. 8. • Economic – Financial institution requiring Sustainability performance of company – Increasing power (financial) and declining trust in corporations – Market demand for clean products and energy • Environment – Compliance – Climate Change Drivers of Sustainability …Message Box ( Arial, Font size 18 Bold) – Climate Change – Biodiversity etc. • Social – Human right – Child Labor To address these drivers strong Corporate Governance is required & this is the main driver for Inclusive Growth.
  9. 9. Sustainability Reporting Sustainability Reporting helps in benchmarking organizational performance with respect to laws, norms, codes, compliance standards and many other voluntary initiatives as well as the vision and mission of the company What you can’t measure, you can’t manage. What you can’t manage, you can’t change! …Message Box ( Arial, Font size 18 Bold) What gets communicated, gets understood! The Role of Head Sustainability or Head EHS or CSO is very important to communicate to senior management about the learning of each year from sustainability reporting and action required by various departments for Inclusive Growth
  10. 10. Chronos – e-learning • Sustainability training for Environment and Sustainability staff at Corporate and other locations as well as to other departments as discussed for Sustainability Council and Sustainability Committee. This will be through Chronos, an e learning tutorial on Sustainability Leadership from University of Cambridge, UK . The cost is given below: …Message Box ( Arial, Font size 18 Bold) 50 Persons £1,500 (£30 per person) 100 Persons £2,000 (£20 per person)
  11. 11. Sustainability Indicators Economic 9 (Finance) Environment 30 ( Operations & EHS) Social 45 • Labor Practice 15 (HR) …Message Box ( Arial, Font size 18 Bold) • Human Right 11 (HR) • Society 10 (CSR) • Product responsibility 9 (Businesses)
  12. 12. High trust The emerging ‘show me’ world Trust me As trust diminishes, the demand for transparency in the form of assurance mechanisms increases Changing demands for Inclusive Growth …Message Box ( Arial, Font size 18 Bold) Low trust Low transparency High transparency Tell me Show me Involve me
  13. 13. Why Reporting Sustainability? • Top Management vision • Enhances reputation & brand image • Effective risk management • Improves operational efficiency and reduces cost • Increases stakeholder engagement • Regulates the environment …Message Box ( Arial, Font size 18 Bold) • Regulates the environment • High rate of attraction and retention of employees • Reduces the pressure from NGOs and/or civil society • New revenue streams • Responsible supply chain management For Inclusive Growth
  14. 14. Sustainability Points to be considered at Corporate: • Sustainability should be driven from top to bottom • It should be considered as KPI for incentive / promotion • It should be embedded as functional role with Manufacturing, HR, Corporate Governance, Supply Chain, Social Responsibility and other related departments …Message Box ( Arial, Font size 18 Bold) • Sustainability training should be organized for all levels including Board (as suggested by UNGC) by Corporate Sustainability • Sustainability Team should organize training on the subject as well as relative indicators for different departments at Corporate level and incorporate Sustainability Reporting • Related areas such as MDGs, UNGC, CDP, NVGs, BRR, Stakeholder engagement etc. should be also discussed with Sustainability Council and Committees
  15. 15. Various Corporate Policies • Corporate Governance & HR – Prevention of Insider Trading – Whistle Blower – Sexual Harassment – Human Rights • Sustainability – Corporate Sustainability – E – Waste Management …Message Box ( Arial, Font size 18 Bold) – E – Waste Management – Energy Conservation – Corporate Environment – Responsible Supply Chain • Health & Safety • Community Relations But no policy on Labor Relation, Labor Involvement or Criteria's for improvements in labor conditions etc.
  16. 16. Socio-Economic Divide Why this Kollaveri ? …Message Box ( Arial, Font size 18 Bold)
  17. 17. What is hindrance at the bottom of the pyramid? • Hunger • Malnutrition • Employment insecurity • Poor or non existent social security • Lack of proper Healthcare facility & support • Threat of livelihood Inclusive Growth …Message Box ( Arial, Font size 18 Bold) • Threat of livelihood Collective aspirations of the people at the bottom of the pyramid • Moving out of poverty • Give their children an opportunity for a better life • Build up some capital • Have at least the basic needs of food, shelter & clothing met without thinking what will happen the next day
  18. 18. Role of Education Importance of healthcare Family Planning Environment Protection Corporate Social Responsibility Inclusive Growth – Social Sector …Message Box ( Arial, Font size 18 Bold) Corporate Social Responsibility
  19. 19. Voluntary Agenda for Inclusive Growth • United Nations Global Compact – 10 Principles on Human Rights, Labour & Decent Work Practices, Environment & Social • Millennium Development Goals (MDGs) – 8 Goals of United Nations Hunger and Poverty, Primary Education, Child Mortality & Maternal Health, Gender Equality & Empower Women, Combat Diseases & Environment Sustainability …Message Box ( Arial, Font size 18 Bold) • Stakeholder Engagement • National Voluntary Guidelines (NVGs) • Business Responsibility Reporting (BRR) • Risk & Opportunities from Climate Change
  20. 20. Inequality- The Reasons • In India too this has increased. However, this is not a story of the rich getting richer and the poor getting poorer. Rather, the rich are getting richer faster than the poor • Inequalities in health, education, and economic assets are high & the key factor responsible for increases in inequality appears to be unevenness in growth • The interplay between market-oriented reforms, globalization, and …Message Box ( Arial, Font size 18 Bold) • The interplay between market-oriented reforms, globalization, and technology has played a role in unequal growth • Corresponding to rapid output growth, employment growth has been far lower in recent years • The differences in real wages between the bottom and top of the labor force in urban areas increased significantly over the last two decades. At the same time, rural–urban differentials in real wages have also widened
  21. 21. Inequality Drivers The main 3 drivers of inequalities are; 1. Inherent by-product of the growth process i.e. and knee-jerk reactions to eliminate increases in inequalities may stifle the growth process itself 2. Lack of access to basic public services such as credit, and risk-mitigating instruments perpetuate the lack of capabilities and opportunities for large sections of society …Message Box ( Arial, Font size 18 Bold) sections of society 3. The marginalization and bypassing of significant sections of society could undermine the sustainability of growth In fact, Inequality is an outcome of the above drivers, and how it should be addressed must begin with identifying the drivers of inequality within the organization through sustainability reporting to attain Inclusive growth
  22. 22. Inclusive Growth: A Strategy The 3 pillars for Inclusive Growth are; 1. Creating opportunities – Equalizing opportunities means that the opportunities generated by growth are available and shared across the entire spectrum of the community 2. Ensuring equal access …Message Box ( Arial, Font size 18 Bold) 2. Ensuring equal access – Equalizing access of economic opportunities to the community in the vicinity and enable individuals to qualify for productive and decent employment 3. Social protection – Livelihood generation, better medical facilities, Good Primary Education etc.
  23. 23. Inclusivity for Sustainable Growth – A Reality • While high and sustainable growth are absolute requirements, the fruits of growth must be shared more equally • The thrust of inclusive growth is on the positive, emphasizing expanding opportunities and capability enhancement . The directional change is from entitlement to empowerment …Message Box ( Arial, Font size 18 Bold) • Public policy interventions to be in place to guarantee an even playing field so that people can be empowered to lift themselves up to exploit the opportunities generated by rapid and sustained growth • Reforms relating to governance, institutions, and policies that address both economic and political inequality will need to be addressed simultaneously
  24. 24. …Message Box ( Arial, Font size 18 Bold) Website: Email ID: Contact No: +91 22 6717 1668