Sustainability Perspectives - Indian and International


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CEOs believe that sustainability issues will be critical to the future success of their business. They also believe that sustainability issues should be fully integrated into the strategy and operations of a company

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Sustainability Perspectives - Indian and International

  1. 1. Industry Leaders on Sustainability Indian and International Perspectives Namrata Rana The Customer Experience Company
  2. 2. "Sustainability now has to be on everyone’s agenda, and that represents a fundamental change." - Klaus Kleinfeld, Alcoa 93% of CEOs believe that sustainability issues will be critical to the future success of their business
  3. 3. "To be a successful and sustainable business, we must fulfill our social responsibilities and build trust with our stakeholders." Andrew Witty, Glaxo SmithKline 96% of CEOs believe that sustainability issues should be fully integrated into the strategy and operations of a company
  4. 4. "Technology is the savior for sustainability issues." - Amr Sheira, CompuMe 91% of CEOs report that their company will employ new technologies to address sustainability issues over the next 5 years
  5. 5. "Consumers are asking who is behind the brand, so we have to make it visible." - Paul Bulcke, Nestlé S.A. 88% of CEOs believe that they should be integrating sustainability through their supply chain
  6. 6. The primary responsibility of business is the betterment of society. - Mukesh Ambani, Reliance Industries “1/6th of humanity lives in India. In this age of rising aspirations, increasing communications, there can be no peace if a billion plus people are discontent. India needs to follow its own economic model to achieve equitable economic success.” photo &copy; <A HREF=>Jordan Miller</A> for <A HREF=></A> CC:Attribution
  7. 7. The purpose of business is to serve society. - Y C Deveshwar, ITC Group “You will have to be reinventing yourself all the time to be relevant to society and relevant to consumers. “ Source : 462608-2.html
  8. 8. What are the trends driving sustainability?
  9. 9. 9 billion 5 Trillion Culture Population of 9 billion expected by 2050 Low-income consumers represent a market of US$ 5 trillion A culture of “consumerism” among higher income groups Charts & Content Source : WBCSD_Sustainable_Consumption_web.pdf Photo : Global drivers of consumption
  10. 10. 1.a Population Charts & Content Source : I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf Population growth and economic development are driving consumption around the world and will continue to do so – especially in India. India’s GDP is expected to rival that of Japan at around the same time, and come close to that of the US by 2050 Photo :
  11. 11. 1.b Middle Class This phenomenon may continue for the next twenty years, accelerating to 90 million new middle-income consumers per year by 2030 Indian middle class is the fastest growing segment. Estimates range from 30 million to approximately 300 million people Photo : & Content Source : sizes/z/in/photostream/
  12. 12. 1.c Middle Class The total consumption in India will increase, making India the fifth largest consumer market in the word by 2025. Globalization and economic integration are giving more consumers access to more products and services. Photo : & Content Source : sizes/z/in/photostream/
  13. 13. 60 % 170 % Human of the Earth’s ecosystem services have been degraded Natural resource consumption is expected to rise Human social systems and well-being Charts & Content Source : WBCSD_Sustainable_Consumption_web.pdf Photo : Global consumption patterns
  14. 14. 2.a Eco Systems Studies show that two-thirds of the Earth’s ecosystem services are in decline. According to estimates, almost a third of the Earth’s plants and animals have been lost since 1970. 30% of the Earth’s terrestrial area, comprising of forest and grassland, has been converted to urban areas Photo : & Content Source : sharman/2872797099/
  15. 15. 2.b Natural Resources Natural resource consumption by humans has increased to 125% of global carrying capacity The most important direct drivers of biodiversity loss and ecosystem service changes are: habitat change , climate change, invasive alien species, overexploitation and pollution. Photo : & Content Source : sharman/2872797099/
  16. 16. 2.c Well Being Well-being is not necessarily correlated with high levels of consumption The New Economics Foundation’s Happy Planet Index ranks a nation’s progress based on the amount of the Earth’s resources its inhabitants use and the length and happiness of people’s lives. India has a ranking of 35. Photo : & Content Source : sharman/2872797099/
  17. 17. Consumers Behavior are concerned about environment issues Consumer willingness is not translating into sustainable consumer behavior Charts & Content Source : WBCSD_Sustainable_Consumption_web.pdf Photo : ThTeh reo lreo olef ocof cnosnusmuemrers
  18. 18. 3.a Consumers Who is the “green/ethical/ sustainable” consumer? Many consumers have not made the same shifts in general behaviors, lifestyles and purchasing decisions. Ethical / green consumption is yet to hit mainstream in India. Photo : & Content Source : sharman/2872797099/
  19. 19. 3.b Digital Consumers 61 % of consumers now consider blogs a reliable source of information, and more than half trust consumer-generated media and branded websites Consumers are increasingly turning to the Internet as a trusted source of peer-generated information Photo : & Content Source : sharman/2872797099/
  20. 20. Innovation Influencing Options Innovative products and services the use of marketing and awareness the removal of “unsustainable” products Charts & Content Source : WBCSD_Sustainable_Consumption_web.pdf Photo : The role of business
  21. 21. 4.a Innovation From the perspective of business, innovation is an essential driver of more sustainable consumption. The goal of sustainable innovation is to deliver high levels of emotional and functional value, while minimizing resource use and environmental impact Charts & Content Source : Photo :
  22. 22. 4.b Choice Influence Businesses have begun to address this increasingly relevant issue of influencing consumer choice Choice influencing refers to a partnership between business and the consumer, which extends from sustainable production and design of products through to their selection, use and disposal Charts & Content Source : Photo :
  23. 23. 4.c Choice Editing The role of business is to influence and educate consumers on how to lead sustainable lifestyles Businesses edit choice by controlling elements of their supply chain or by eliminating product components that pose a risk to the environment or human health Charts & Content Source : Photo :
  24. 24. Conclusion We all have a role to play towards a sustainable better planet Governments, consumers and businesses all have important roles to play in fostering sustainable consumption Charts & Content Source : Photo :
  25. 25. International Companies
  26. 26. Statoil ASA - Environment & Society Photo : Statoil has been ranked as the No 1 sustainable company. The environment & society programs focus on climate, energy health & safety, Biodiverisity, Clean air, Emissions to water.
  27. 27. Walmart - Sustainability Score Card Photo : Walmart’s sustainability index helps create a more transparent supply chain, driving product innovation and ultimately providing their customers with information they need to assess products’ sustainability.
  28. 28. Nike - North Star Photo : has developed North Star to define what sustainable products and a sustainable company would look like. Its grounded in addressing sustainability at the very core of our business, beginning with design.
  29. 29. Sainsbury - National Grid Initiative Photo :'s is using experimental technology to help reduce the UK's dependence on fossil fuels. Many people are unaware of the strain the National Grid comes under at peak times, as coal-fired power stations across the country have to be ‘switched on' to meet the increased demand on the UK's electricity supply.
  30. 30. Photo : the_never_ending_list.html Ikea - The Never Ending list Ikea’s The Never Ending list consists of all the improvements they have made for people and the environment so far contributing to the sustainability aim. This list features all initiatives taken for Environment, People and Planet. The latest initiative is that Ikea plans to build a wind farm that will supply electricity to all 17 of its stores in Sweden.
  31. 31. Indian Companies
  32. 32. Source : Indian Oil - Rank No 1 ET 500 Excerpts from Sustainability Report - Environment and Social B.M. Bansal Chairman & Director “Our primary concern is still energy security and how we can translate investments in energy into affordable products for our fellow citizens” Environment - Optimum utilization of Raw Materials - Energy Conservation - Clean Development Mechanism (CDM) Projects - Initiatives to control / reduce emissions - Water Conservation through rain water harvesting Social - Community development programs - Providing clean drinking water - Facilitating education of children - Organising health checkup camps
  33. 33. Reliance Industries - Rank No 2 ET 500 Source : Excerpts from Sustainability Report - Environment and Social Mukesh Ambani CMD “We realize that as a responsible business, the circle of our sustainability endeavors must only grow wider." Environment - Consumption and conservation of natural resources - Energy conservation measures - Climate change through CDM projects - Conserve and propagate bio-diversity - Waste reduction and utilisation are of prime focus at all manufacturing division Social - Rural development programs - Women Empowerment initiatives - Healthcare Facilities - Education
  34. 34. Source : Tata Steel - Rank No 3 ET 500 Excerpts from Sustainability Report - Environment and Social B. Muthuraman, Vice Chairman “We strive constantly to improve the sustainability of both our manufacturing processes and our finished materials” Environment - Reduce our carbon dioxide emissions. - Develop sustainable new products and services that generate lower co2 emissions through the life cycle - Developing sustainable packaging solutions - Adapting/ Creating technologies / infrastructure to have sustainable energy mix Social - Health & welfare - Scholarships & Education - Skill development
  35. 35. Source : BPCL - Rank No 4 ET 500 Excerpts from Sustainability Report - Environment and Social Ashok Sinha Chairman & MD “To achieve these aspirations, we now need to refine the strategy and detail the initiatives” Environment - Energy and Climate change are important - Develop new clean technology - Consuming natural resources responsibly - Water conservation is priority Social - Nurturing people, fostering talent - Ensuring safety & security and promoting health - Developing sustainable communities
  36. 36. Source : HPCL - Rank No 5 ET 500 Sustainability report not available online Arun Balakrishnan Chairman & MD Environment HPCL does not have a sustainability report, but they do have Environment, Safety policy. The have a wide range of social activities under CSR initiatives. Social - Social Activities are part of CSR.
  37. 37. Source : ONGC_Sustainability_Report_2009-10.pdf ONGC - Rank No 6 ET 500 Sustainability report not available online R .S. Sharma Chairman & MD “We have demonstrated our environmental responsibility and commitment towards sustainability through our enterprise wide sustainability initiatives and cross functional groups.” Environment - Sustainable Production - Sustainable Technology and Field Services - Sustainable Exploration - Managing our water footprint - Managing and reducing our environmental impacts - preventing oil spill Social - Improving the lives and livelihood of the community - Education - Women Empowerment
  38. 38. Source : SBI Bank - Rank No 7 ET 500 Sustainability report not available online O. P. Bhatt Chairman Environment SBI does not have a sustainability report, also no CSR policy or initiatives were identified on their website. Social - No CSR policy or activities were identified.
  39. 39. Source : Hindalco - Rank No 8 ET 500 Sustainability report not available online Kumar Mangalam Birla Chairman Environment - Technology for greenfield projects to conserve energy - Waste Management - Controlling Emissions - Rehabilitation of resources - Recycling of industrial waste Social - Health checkups - Education - Skill development - Women empowerment - Agricultural support
  40. 40. ICICI Bank - Rank No 9 ET 500 Excerpts from Sustainability Report Source : Mr. K.V. Kamath Chairman, Environment - ICICI Foundation part of ICICI Bank focuses on Environment. - ICICI’s Environmentally Sustainable Finance Group focuses on research and action related to environment - Carbon Emission, Climate change, environment policies are some of the initiatives under sustainability Social - Under the CSR initiative the focus is on elementary education, Primary health and access to finance
  41. 41. Source : SAIL - Rank No 10 ET 500 Sustainability report not available online Mr. C. S. Verma Chairman, Environment SAIL does not have a sustainability report, but they do have a corporate environment policy. Social - Corporate CSR policy is available, activities could not be identified.
  42. 42. NTPC - Rank No 11 ET 500 Sustainability report not available online Mr. Arup Roy Chaudhury Chairman, Source : - NTPC has a environment policy which undertakes various initiatives - CenPEEP - Program to reduce green house gas emission. - Ash Utilisation - Afforestation Social - The CSR initiatives focus on Resettlement & rehabilitation. - Community Development, - Scholarship programs - empowering People
  43. 43. Tata Motors - Rank No 12 ET 500 Source : Excerpts from Sustainability Report Mr. P M Telang MD Environment - Tata motors has various initiatives under the following two core aspects. - Reduction of environmental pollution and regular pollution control drives - Restoration of ecological balance. - Initiatives like conservation of water, soil and plantation are carried out. Social - The CSR initiatives of Tata motors focus on - Health - Employability - Education
  44. 44. Source : MRPL - Rank No 13 ET 500 Sustainability report not available online Mr. R. S. Sharma Chairman Environment - MRPL has environment policy which has the following initiatives . - Landscaping - Water Treatment Plant - Green Belt Social - The Social initiatives could not be identified.
  45. 45. Larsen & Toubro - Rank No 14 ET 500 Source : res=P_SIA_CSM&tabid=SIA_0 Sustainability report not available online Mr. A. M. Naik Chairman & MD “For us 'sustainability' is not just 'survivability' but 'thrivability'. Environment L & T major focus is on - Energy & Water conservation - Emission control Social - The Social initiatives focus on - Healthcare - Welfare of Employees.
  46. 46. Source : CPCL - Rank No 15 ET 500 Sustainability report not available online Mr. K. Balachandran MD Environment The CPCL environment policy focuses on - Reducing Greenhouse Gas emissions - Zero Discharge - Usage of Solar power Social - The Social initiatives as part of CSR focus on Education, Health Care, Sanitation, Water supplies, Sports development and, Women empowerment
  47. 47. Futurescape, Delhi Level 4, Rectangle 1, Commercial Complex D4 Saket, Behind Sheraton, Delhi New Delhi – 110017, INDIA Futurescape, Mumbai Level 2, Raheja Centre Point 294 CST Road Near Mumbai University Off Bandra–Kurla Complex, Santacruz (E) Mumbai – 400098, INDIA Telephone: +91 9910201783 +91 (11) 6654 4196 Email: Web: Twitter: @futurescape