This presentation describes the Sustainability, the contemporary issues existing around it, and approaches to resolve those issues. This presentation also provides some of the relevant case studies in this regard. Overall, a good starting point for someone who wants to know more about sustainability.

1. SUSTAINABILITY
- THE ONLY WAY FORWARD
Presentation
By
CA. Anil Sharma

2. Facets of governance
• Fulfilling responsibilities (what)
• Performance (how)

3. Facets of governance –What?
• Economic returns,
• Legal and regulatory compliance,
• Business continuity,
And
• Protection of interest of all the
stakeholders.

4. Facets of governance –How?
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•
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•
•
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Vision,
Innovations and initiatives,
Business policies and procedures,
Business ethics and fairness,
Transparency and disclosures,
Accountability
And
• Maintaining balance between economic and social
goals.

5. Sustainability defined
“ The natural resources are not inexhaustible and the
development process should be aimed to meet the
needs of the present generation without
compromising the ability of future generation to
meet their own needs.”
Report 1987.
Brundtland Commission of UN

6. Sustainability defined
“Economic development, social development
and environmental protections are interdependent and mutually reinforcing pillars of
sustainable development.”
UN World Summit, 2005

7. Key Current Sustainability Issues
•
•
•
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Climate change
Water availability/quality
Sustainable consumption
Consumer preferences
Human rights
Worker’s rights
“Sustainability is not simply about green
economy, it is about the whole economy.”

8. Goals of Sustainability
Triple Bottom Line Approach
– People
– Planet
– Profit

9. TBL Approach- People
Fair and beneficial business practices
towards:
labour
community
Region
HUMAN CAPITAL

10. TBL Approach- Planet
• Sustainable environmental policies
– Reduction of ecological footprint
– Conducting life cycle assessment
– No ecologically destructive practices
• NATURAL CAPITAL

11. TBL Approach-Profit
Economic value created by the organisation
after deducting the cost of all inputs
including the cost of the capital tied up.
Real economic impact the organisation has
on its economic environment.
ECONOMIC CAPITAL

12. Entrepreneur
vs.
Social entrepreneur
ENTERPRENEUR:
• Engine of growth
• Harnessing opportunities
• Innovation to fuel economic
SOCIAL ENTERPRENEUR:
• tapping inspiration and creativity
• Courage and fortitude
• Seize opportunities that challenge and forever change
established but fundamentally inequitable systems.

13. Social entrepreneurs
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•
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Maria Montessori.
Muhammad Yunus – Grameen Bank.
Green Hotel by ITC.
E-Chopal by ITC.
Waste management to power generation
by A to Z Maintenance Co.
• Azure Power project at Awan in Amritsar.

14. Standards for sustainability
• ‘Good things to do’ vs. ‘Things to do’.
• Regulatory mechanism provided minimum
benchmark.
• Corporate Social Responsibility or Corporate
Social Requirement.
• CSR as mission rather than as a challenge.

15. Emerging Corporate Leaders
Driving Sustainability
• A Survey conducted by Globe Scan and
SustainAbility in March 2009 on 1600 experts.
• A credible public commitment to
sustainability grounded in the company’s
core values is cited as a key factor behind
experts’ choice.

16. Conclusions of the Survey
1. Sustainability strategies appear to be
driving the necessary change.
2. Companies that integrate sustainability
as a core value are also expected to
follow through with more sustainable
products and services.

17. New sustainability era on the horizon
• Businesses will have to grapple with a new
concept of value that
– moves beyond a focus purely on profit,
– incorporates non-financial metrics, putting a new onus
on the ability to measure and communicate progress.
• Businesses will need to
– measure both positive and negative impacts of business
on society,
– track and manage sustainability’s impact on core
business drivers and metrics and
– embed sustainability in individual performance
frameworks for managers across their organizations.

18. Sustainability- important for future
success
• Survey conducted by Accenture in 2010.
• 766 UN Global Compact member CEOs plus
more than 50 civil society leaders were
interviewed.
• Core issue was whether rising global
competition, technological change and the most
serious economic downturn in nearly a century
has any impact on commitment to the principles
of sustainability.

19. Findings of the Survey
•93% CEOs see sustainability as important to their
company’s future success.
•72% of CEOs see education as the global
development issue most critical to address for the
future success of their business. Climate change is
second with 66%.
•91% of CEOs report that their companies will employ
new technologies to address sustainability issues
over the next five years.
•58% of CEOs identify consumers as the most
important stakeholder group that will impact the wy
they manage societal expectation,

20. Findings of the Survey
Broader set of issues are starting to appear on
the corporate radar as of increasing concern:
- Resources scarcity (water in particular).
-Health
- partnerships and collaboration are a critical
element to sustainability issues, multistakeholder partnerships to address
development goals.

21. Financing by Financial Institutions
The Equator Principles:
A financial industry benchmark for determining,
assessing and managing social and environmental
risk in project financing.
The Equator Principles Financial Institutions
(EPFI) have adopted these principles in order to
ensure that the projects finance are developed in
manner that is socially responsible and reflect
sound environmental management practices.

22. The Equator Principles
EPFIs will only provide loans to projects that
conform to the following principles:
1.Review and Categorization
2.Social and Environmental Assessment
3.Applicable Social and Environmental Standards
4.Action plan and Management System
5.Consultation and Disclosure
6.Grievance Mechanism
7.Independent Review
8.Covenants
9.EPFI Reporting

23. Performance Standards of IFC
•PSs define clients’ roles and responsibilities for managing
their projects and the requirements for receiving and retaining
IFC support:
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PS1- Social and Environment Assessment
PS2- Labour and working conditions
PS3- Pollution Prevention and Abatement
PS4- Community Health, Safety and Security
PS5- Land Acquisition and involuntary Resettlement
PS6- Biodiversity Conservation and Sustainable Natural
Management
– PS7- Indigenous People
– PS8- Cultural Heritage
Resource

24. Green Consumer Behaviour
• National Geographic’s 2009 GREENDEX
Survey to monitor consumer behaviour that
have an impact on the environment.
• Consumers in 17 countries surveyed in 65
areas including:
– Housing
– Transportation
– Food
– Household goods

25. Findings of National Geographic’s
2009 GREENDEX Survey
1. Consumers recognise the connection
between their actions and environment.
2. Increase in green consumer behaviour
worldwide.
3. Consumers in India and Brazil top the
Index.

26. Sustainability – an opportunity
rather than a challenge
• Finding of Survey “ The Sustainability
Survey Poll on Climate Change”
– Tremendous growth opportunities in the areas
of renewable energy and low carbon products
and services.
– Ideal opportunity for businesses to carve out
new sources of competitive advantage and
market leadership.

27. Sustainable Growth Strategy
AIM:
to achieve top-line growth and bottom line
results
MEANS:
• Durable corporate venture strategy,
• Improving processes,
• Continuous improvement culture and
• Radical innovations.

28. Case Study- Tata Power
• Sustainability Commitment:
– Displacement, rehabilitation and sustainable development.
• Project:
– Community Engagement Strategy Development.
• Approach:
– Research and analysis on current regulatory environment around
land acquisition and settlement in India, civil society positioning and
global corporate best practices
– Consultation with managers and key civil society stakeholders.
• Results:
– Development of actionable steps and guidance structures.
– Decision to apply community engagement practices across all sites.

29. Case Study- DU PONT
• Sustainability Commitment:
– Commitment to achieve sustainable growth and top the ’Green
companies” list.
• Project:
– Stakeholder engagement- testing the waters.
• Approach:
– Understanding current priorities of the company
– Role of stakeholders in informing business decision making
– To decide priority of chemicals, agriculture, biotechnology and
nanotechnology.
– Steps to be taken to embed stakeholders engagement in the business
• Results:
– Confirmation that market is already moving against hazardous
chemicals
– Opportunities in areas other than chemical with radically lower
environmental footprints.

30. Case Study- HUL
• Sustainability Commitment:
– Meeting everyday needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of life.
• Project:
– Identify and better understanding of expectations of stakeholders
– Identify issues that are material to stakeholders
– Benchmark its strategy.
• Approach:
– Desk research on issued for FMCG sector
– Engagement of Internal management and external thought leaders.
– Reporting strategy
• Results:
– Identified five key platforms: Health and nutrition, Empowerment of
marginalised community through vocational education, Water
conservation and reducing greenhouse gas emissions.

31. Sustainability- the only way forward
Companies like any living organism, must become
learning organisations that change and adopt to
suit their changing environment.
“If you don’t practice the change management
that looks after the future, the future will not
look after you.”
Bill Gates

32. THANK YOU.
Contact me at:
anil54@gmail.com
098-113-20203