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

1. AWARENESS PROGRAM ON SUSTAINABILITY
- Cyril Danthi

2. AGENDA
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•
•
•
•
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. INDUSTRIAL REVOLUTION
The industrial revolution - effects
• Machine-made industries
• Manufacturing
• Wealth increase
• Mechanized and increased yield in agriculture

4. Consumption increased
Increase in use of natural resources, minerals, metals, etc
Exponential rise in CO2 emissions, air pollution, etc

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. 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. WHAT IS GOING ON IN THE WORLD ?

8. WHAT IS GOING ON IN THE WORLD ?

9. WHAT IS GOING ON IN THE WORLD ?

10. WHAT IS GOING ON IN THE WORLD ?

11. WHAT IS GOING ON IN THE WORLD ?

12. WHAT IS GOING ON IN THE WORLD ?

13. ROLE OF ORGANIZATIONS

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. 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

17. 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

18. 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

19. 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’

20. 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

21. BUSINESS SUSTAINABILITY & REPORTING

22. 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)

23. 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

24. 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

25. DIFFERENT FORMS OF DISCLOSURE

26. 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

27. UN GLOBAL COMPACT – 10 PRINCIPLES

28. 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

29. 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.

30. 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.

31. 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

32. PURPOSES OF SUSTAINABILITY REPORTING

33. 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

34. 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

35. MAPPING OF NVG WITH GRI, UNGC INDICATORS

36. 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

37. SUSTAINABILITY CONTEXT & REPORTING

38. SUSTAINABILITY CONTEXT & REPORTING
Economic
Environmental
Social
A report about economic, environmental and social impacts caused by an
organization though its every day activities.

39. 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

40. 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)

41. 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

42. GRI - REPORTING PROCESS
Prepare
Connect
Define
Monitor
Report

43. 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

44. GRI - REPORTING PROCESS - CONNECT
Prepare
Connect
•
•
•
Define
Identify stakeholders.
Prioritize them.
Dialogue with them
Monitor
Report

45. GRI - REPORTING PROCESS -DEFINE
Prepare
Connect
•
•
Define
Monitor
Select issues for action & report.
Decide on report content.
Report

46. 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

47. 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

48. Any
?
Please

49. THANK YOU