3. Role of Organizations
•Gives support where not available from
the state or local communities
•Not related to “day to day “ decision
making operations
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
Philanthropy Responsible Management
5. Shareholder to Stakeholder Value
Profit
People
Sustainability
Investor
CustomersSuppliers
Communities
Govt / Regulators
Public
NGO / Media
6. Sustainability Issues
Stakeholder Social issues Environmental issues
Suppliers
Wages and benefits
Conditions of work
Safety.
Emissions, effluents, and waste
Carbon footprint
Water consumption
Investors
Managing community expectations
Social issues in the supply chain
Product safety
Environmental performance
Security of supply of natural
resources
Employees
Occupational health and safety
Freedom of association
Capacity building
Environmental conditions at the
workplace
Emissions, effluents, and waste
Customers
Product safety
Product performance
Resource consumption during
usage
Packaging material disposal
Communities
Infrastructure development
Better livelihood opportunities
Improved quality of life
Emissions, effluents, and waste
Natural resources availability -
water, forests
8. Businesses Sustainability
•Energy
•Water
•Waste
•Air emissions
•Products stewardship
•Labour practices
•Stakeholder engagement
•Human rights
•Health & Safety
•Diversity
•Employee benefits
•Contribution to local
community
development
•Spending on local
suppliers
Sustainable businesses
Economic Performance Social Performance
Environmental
Performance
9. Changes in regulations..
2003
2008
2011
2012
Near
Future
• 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
10. changes means Business Sustainability
• 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’
11. Benefits of Sustainable Innovation
Environmental Benefits
• Greenhouse gas emissions reduced
• Energy use reduced or efficiency
increased
• Hazardous pollutants released in air,
water or land reduced
• Solid waste reductions, materials use
reduced or efficiency increased
• Supplier behaviour influenced, resulting
in environmental benefits
• Natural resources protected or restored
Business Benefits
• Cost savings
• Increased revenues or earnings
• Reduced liability or risk
• Return on investment/payback period
• New market creation
• Investment attractiveness
• Benefits for customers
• Brand/reputation enhancement
Social Benefits
• Stakeholder consultation
• Livelihood creation
• Community relation enhancement/
benefit
• Specific impact on social issues of direct
relevance
Innovativeness
• Is the innovation original or is it a
significant improvement over an existing
solution?
• Is it still in scarce use?
• Does it offer economic, social and/ or
environmental benefits?
• Is it applicable to other sectors/ areas?
• Is it commercially viable?
12. Impact Matrix for identifying solutions..
Idea / Solutions Approach Business Impact Benefits
13. Innovation in business drivers
Drivers Materiality
Cost
effectiveness
Differentiator
What's Next ??
Competitive opportunities
Competitive risks
Opportunity for bottom
of the pyramids
Opportunity in CC
Brand
Market
Compliance
15. 5 steps on the road to sustainability-driven innovation
Vision
Materiality
for Driving
FrameworkTrack
Innovation
1
4 3
25
16. Characteristics for Transformation….
Sensitizing & Capture
low yielding
Improvement Projects
Actions / challenges
On organizational
requirements
Improvements
as DNA of the
organization
Problem Solving Team Work
Continuous
Improvement
Innovation
Innovation
17. Improvement Framework
HRD
H
Identification of
improvement
Projects
Prioritization of
projects
Registration of
projects
Review of
Improvement
Projects
Integration of
improvement
projects.
framework
Define Measure Analyze Improve Control
L M H Efforts
LM
Impac
t
1
2 3 4 5
Define – Project purpose and scope
Measure – Current performance
Analyze – cause and confirm with data
Improve – by removing variations and non value added activities
Control – integration with ISO, SOP, Office Order
18. 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
20. GRI - Framework
ECONOMIC
• Economic Performance
• Market Presence
• Indirect Economic Impacts
HUMAN RIGHTS
• Investment and Procurement
Practices
• Non-discrimination
• Freedom of Association and
Collective Bargaining
• Abolition of Child Labor
• Prevention of Forced and
Compulsory Labor
• Complaints and Grievance
Practices
• Security Practices
• Indigenous Rights
LABOR PRACTICES AND
DECENT WORK
• Employment
• Labor Management Relations
• Occupational Health and
Safety
• Training and Education
• Diversity and Equal
Opportunity
ENVIRONMENT
• Materials
• Energy
• Water
• Biodiversity
• Emissions, Effluents, and Waste
• Products and Services
• Compliance
• Transport
SOCIETY
• Community
• Corruption
• Public Policy
• Anti-Competitive Behavior
• Compliance
PRODUCT RESPONSIBILITY
• Customer Health and Safety
• Product and Service Labelling
• Marketing Communications
• Customer Privacy
• Compliance