Awareness Sustainability & Sustainability Reporting

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Today Sustainability and Sustainability reporting is buzz in every organisation. This presentation is just an awareness on sustainability and sustainability reporting process.

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Awareness Sustainability & Sustainability Reporting

  1. 1. AWARENESS PROGRAM ON SUSTAINABILITY - Cyril Danthi
  2. 2. AGENDA • • • • • Business context for sustainability The changing policies and environment for disclosure Different types of disclosure – UNGC, GRI and NVG Global Reporting Initiative – The reporting framework The Reporting Process
  3. 3. INDUSTRIAL REVOLUTION The industrial revolution - effects • Machine-made industries • Manufacturing • Wealth increase • Mechanized and increased yield in agriculture
  4. 4. Consumption increased Increase in use of natural resources, minerals, metals, etc Exponential rise in CO2 emissions, air pollution, etc
  5. 5. WHAT CAN ONE DEGREE TEMPERATURE CHANGE DO TO US… Consumption increased Increase in use of natural resources, minerals, metals, etc Exponential rise in CO2 emissions, air pollution, etc
  6. 6. SUSTAINABILITY CONTEXT • What is going on in the world ? • How does society react to face these problems ? • How does society see the role of organizations to help solve these problems ? • What does society expect of organisations and how does this change the business scenario?
  7. 7. WHAT IS GOING ON IN THE WORLD ?
  8. 8. WHAT IS GOING ON IN THE WORLD ?
  9. 9. WHAT IS GOING ON IN THE WORLD ?
  10. 10. WHAT IS GOING ON IN THE WORLD ?
  11. 11. WHAT IS GOING ON IN THE WORLD ?
  12. 12. WHAT IS GOING ON IN THE WORLD ?
  13. 13. ROLE OF ORGANIZATIONS
  14. 14. ROLE OF ORGANIZATIONS Organizations concentrate large amount of financial, technical ( research & technology), natural & human resources. They also influence political decisions. They have to be part of the solution.
  15. 15. ROLE OF ORGANIZATIONS Philanthropy •Gives support where not available from the state or local communities •Not related to “day to day “ decision making operations. Responsible Management •Uses “day to day” management decisions to address social, economic and environmental issues resulting from the organizations operations. e.g design of products/services, supplier etc Different ways to respond: Both Important, but different and lead to different results
  16. 16. WHAT IS SUSTAINABILITY What is Sustainability Development Sustainable development is development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Sustainability for businesses Business sustainability is defined as managing the triple bottom line- a process by which companies manage their financial, social and environmental risks, obligations and opportunities. Successful businesses of tomorrow will need to manage the triple bottom lines Economic Performance Transforming Businesses •Employee benefits •Contribution to local community development •Spending on local suppliers Social Performance Environmental Performance •Labour practices •Stakeholder engagement •Human rights •Health & Safety •Diversity •Energy •Water •Waste •Air emissions •Products stewardship
  17. 17. CHANGING REGULATORY LANDSCAPE COMPELLING BUSINESSES TO ADOPT SUSTAINABLE PRACTICES Near Future 2012 2011 2008 2003 • Water Act • Air Act •Enforcement of Kyoto Protocol •Renewable Energy -GBI, Accelerated Depreciation and Feed in Tariffs •National Action Plan on Climate Change(NAPCC) •Perform Achieve and Trade (PAT) •Renewable Purchase Obligation (RPO) •SEBI - BRR guidelines •Companies Bill 2012 •National Water Policy •Extended Producer Responsibility (EPR) •Green Public Procurement (GPP)* •Land Acquisition Bill •Water allocation and trading# •Integrated reporting
  18. 18. SUSTAINABILITY FOR BUSINESS • Sustainability is a driver for business Innovation • It’s a direction for businesses to survive for LONG term with LESS harm to people and planet • …And creates the ‘license to operate’
  19. 19. Sustainability is now Key Driver of Innovation STAGE 1 Viewing Compliance as Opportunity STAGE 2 Making Value Chains Sustainable STAGE 3 Designing Sustainable Products and Services STAGE 4 Developing New Business Models STAGE 5 Creating Next-Practice Platforms HewlettPackard realized that because lead is toxic way back in 1990’s Titan Karigari Case P & G Air cool Clean – Cold washing Fedex and Kinko’s chain of print jobs Car running on water
  20. 20. BUSINESS SUSTAINABILITY & REPORTING
  21. 21. BUSINESS SUSTAINABILITY & REPORTING Peer Pressure • • • • • Recommendation of the UN Secretary General's High Level Panel on Global Sustainability Rio+20 negotiating text -Zero Draft: “A global policy framework requiring all listed and large private companies to consider sustainability issues and to integrate sustainability information within the reporting cycle.” Governmental pressure Supply-chain pressure (e.g. PUMA) Customer pressure (e.g. IT companies, mergers/acquisitions)
  22. 22. BUSINESS SUSTAINABILITY & REPORTING Regulatory environment • MCA pushing Business Responsibility Reporting o SEBI making it mandatory • GoI approving the new Companies Act o Making 2% CSR spending for bigger corporations Stakeholder Pressure • The rise of ‘Communitivism’ (Community Activism) • Investors & FIs. promoting ethical business Overlooking environmental damage is more •costly than environmental mitigation
  23. 23. BUSINESS SUSTAINABILITY & REPORTING Ultimately, it’s now the age of transparency • Scams, raising voice against corruption... • Employees want to know more... Demand more • Society and Community seek more open dialogues • Investors vary of companies with ‘rigid’ and closed structure • Accountability • Transparency
  24. 24. DIFFERENT FORMS OF DISCLOSURE
  25. 25. UN GLOBAL COMPACT (UNGC) Launched in July 2000, the UN Global Compact is a both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. As a leadership initiative endorsed by chief executives, it seeks to align business operations and strategies everywhere with ten universally accepted principles in the areas of human rights, labour, environment and anticorruption
  26. 26. UN GLOBAL COMPACT – 10 PRINCIPLES
  27. 27. NATIONAL VOLUNTARY GUIDELINES (NVG) Indian Disclosure perspective • Ministry of Corporate Affairs Voluntary • Guidelines • Disclose: 2.5% of revenues for CSR • SEBI ruling on top 100 companies as per market capitalisation
  28. 28. NATIONAL VOLUNTARY GUIDELINES (NVG ) NVG - 9 Principles 1. Businesses should conduct and govern themselves with Ethics, Transparency, and Accountability 2. Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle 3. Businesses should promote the wellbeing of all employees 4. Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised. 5. Businesses should respect and promote human rights 6. Business should respect, protect, and make efforts to restore the environment 7. Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner 8. Businesses should support inclusive growth and equitable development 9. Businesses should engage with and provide value to their customers and consumers in a responsible manner.
  29. 29. GLOBAL REPORTING INITIATIVE (GRI) • The Global Reporting Framework is an independent non-profit organisation based out of Amsterdam • It is composed of independent ‘stakeholders’ who develop the GRI Guidelines based on systematic dialogue with relevant stakeholder • constituencies. • GRI proposes a methodology for sustainability reporting. • The GRI guidelines and methodology are recognized and used by all types or organizations worldwide, from industries to NGOs and the public sector.
  30. 30. GRI - FRAMEWORK GRI-G3 ENVIRONMENT • Materials • Energy • Water • Biodiversity • Emissions, Effluents, and Waste • Products and Services • Compliance • Transport LABOR PRACTICES AND DECENT WORK • Employment • Labor Management Relations • Occupational Health and Safety HUMAN RIGHTS • Investment and Procurement Practices • Nondiscrimination • Freedom of Association and Collective Bargaining • Training and • Abolition of Child Education Labor • Diversity and Equal Opportunity • Prevention of Forced and Compulsory Labor • Complaints and Grievance Practices • Security Practices • Indigenous Rights SOCIETY • Community • Corruption • Public Policy • Anti-Competitive Behavior • Compliance PRODUCT RESPONSIBILITY • Customer Health and Safety • Product and Service Labelling • Marketing Communications • Customer Privacy • Compliance
  31. 31. PURPOSES OF SUSTAINABILITY REPORTING
  32. 32. PURPOSES OF SUSTAINABILITY REPORTING  Sustainability Reports can be used for the following purposes, among others: • Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards; • Demonstrating how the organization influences and is influenced by expectations about sustainable development; • Comparing performance within an organization and between different organizations overtime
  33. 33. PURPOSES OF SUSTAINABILITY REPORTING • Improving business performance, operational efficiency and cost savings • Improving reputation with stakeholders including investors, credit agencies, customers, employees and business partners • Increasing brand value and recognition • Enhancing risk assessment and management capabilities
  34. 34. MAPPING OF NVG WITH GRI, UNGC INDICATORS
  35. 35. MAPPING OF NVG WITH GRI, UNGC INDICATORS The following is a mapping of the 9 core principles of NVG-SEE against the pertinent indicators of the GRI G3.1 guidelines and the UNGC principles NVG-SEE principles (Aspects) GRI G3.1 Indicators UNGC Principles Principle 1 : Ethics, transparency and accountability 4.1 – 4.13 Principle 10 Principle 2 : Product life cycle sustainability EN2, EN26, EN29, PR1, PR2 Principle 8 Principle 3 : Employees’ well-being LA1, LA10, HR4, EC5 Principle 3, Principle 4, Principle 5, Principle 6 Principle 4 : Stakeholder engagement 4.14 – 4.17 Principle 5 : Human rights HR10, HR11 Principle 1, Principle 2 Principle 6 : Environment EN1 – EN30 Principle 7 , Principle 8, Principle 9 Principle 7 : Policy advocacy SO5 Principle 8 : Inclusive growth SO1, SO9, SO10, EC8 Principle 9 : Customer value PR3, PR4, PR5
  36. 36. SUSTAINABILITY CONTEXT & REPORTING
  37. 37. SUSTAINABILITY CONTEXT & REPORTING Economic Environmental Social A report about economic, environmental and social impacts caused by an organization though its every day activities.
  38. 38. GRI & THE GRI FRAMEWORK Structured feedback process on 2002 guidelines 2003-2005 TAC & BoD Approval G3 Guidelines released 2006 Decision to work on G4 announce d 2010 DG 3.1 released. G4 working groups establishe d. 2011 G4 international sneaks peeksTAC & BoD approval G4 G4 Guidelines are released 201220013
  39. 39. GRI & THE GRI FRAMEWORK GRI Framework developed based on systematic dialogue with key stakeholde Guidelines contain: • Principles • Profile Disclosure • Disclosure on Management Approach • Performance Indicators and Protocols And: • Sector Supplements • National Annexes (current status)
  40. 40. MAPPING OF NVG-SEE WITH GRI, UNGC INDICATORS Content Strategy & Analysis Principles Quality Organization Profile Boundary Report parameters Disclosure Items Governance, Commitments and Engagement Standard Disclosures Economic Disclosure on Management Approach and Performance Indicators Environmental Social
  41. 41. GRI - REPORTING PROCESS Prepare Connect Define Monitor Report
  42. 42. GRI - REPORTING PROCESS - PREPARE Prepare Connect • • • • Define Monitor Imagine your report. Hold a kick off meeting. Create the “reporting team”. Develop an Action Plan. Report
  43. 43. GRI - REPORTING PROCESS - CONNECT Prepare Connect • • • Define Identify stakeholders. Prioritize them. Dialogue with them Monitor Report
  44. 44. GRI - REPORTING PROCESS -DEFINE Prepare Connect • • Define Monitor Select issues for action & report. Decide on report content. Report
  45. 45. GRI - REPORTING PROCESS – MONITOR Prepare Connect • • • • • Define Monitor Check procedures & systems. Discuss & set goals. Monitor activities & record data. Ensure quality of information. Follow up. Report
  46. 46. GRI - REPORTING PROCESS – REPORT Prepare Connect Define • Choose best way to communicate. • Write the report. • Finalize & launch the report. • Prepare for the next cycle. Monitor Report
  47. 47. Any ? Please
  48. 48. THANK YOU

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