Tata Power is India's largest integrated private power company that has been operating since 1906, with a focus on renewable energy sources and public-private partnerships across the power sector. The document discusses the importance of sustainability and inclusive growth for companies, highlighting key concepts like the triple bottom line and drivers of sustainability reporting to ensure economic opportunities are equally accessible to communities near business operations.

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Inclusive Growth – Is Sustainability the Answer ?
Dr. Yogendra Saxena
September 26, 2013

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
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• Thrust on renewable energy sources including hydro, wind, solar and
geothermal
• Successful Public Private Partnerships in generation, transmission and
distribution

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!!!
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Leadership with Care!!!
Care for Environment, Shareholders, Customers, Community, People,
Employees, Partners & Suppliers

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:
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“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. 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
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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. Sustainable Development or Sustainability
Transition
Growth
Development
Well-being
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Well-being
Inclusive Wealth
Inclusive Investment
Inclusive Growth

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)
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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. • 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
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– 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. 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!
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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. 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:
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50 Persons £1,500 (£30 per person)
100 Persons £2,000 (£20 per person)

11. Sustainability Indicators
Economic 9 (Finance)
Environment 30 ( Operations & EHS)
Social 45
• Labor Practice 15 (HR)
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• Human Right 11 (HR)
• Society 10 (CSR)
• Product responsibility 9 (Businesses)

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
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Low trust
Low transparency High transparency
Tell me
Show me
Involve me

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
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• 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. 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
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• 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. Various Corporate Policies
• Corporate Governance & HR
– Prevention of Insider Trading
– Whistle Blower
– Sexual Harassment
– Human Rights
• Sustainability
– Corporate Sustainability
– E – Waste Management
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– 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. Socio-Economic Divide
Why this Kollaveri ?
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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
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• 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. Role of Education
Importance of healthcare
Family Planning
Environment Protection
Corporate Social Responsibility
Inclusive Growth – Social Sector
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Corporate Social Responsibility

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
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• Stakeholder Engagement
• National Voluntary Guidelines (NVGs)
• Business Responsibility Reporting (BRR)
• Risk & Opportunities from Climate Change

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
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• 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. 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
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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. 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
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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. 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
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• 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

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Website: www.tatapower.com
Email ID: yogendra.saxena@tatapower.com
Contact No: +91 22 6717 1668