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Sustainability a Opportunity ….
Cyril Danthi…
21st Century Problem
Poverty Natural Resource Constraints
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
Sustainable Development to Sustainability
Profit
People Planet
Sustainability
Shareholder to Stakeholder Value
Profit
People
Sustainability
Investor
CustomersSuppliers
Communities
Govt / Regulators
Public
NGO / Media
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
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.”
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
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
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’
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?
Impact Matrix for identifying solutions..
Idea / Solutions Approach Business Impact Benefits
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
Innovation Path…InnovationProfitabilityCapacity
Time 
5 steps on the road to sustainability-driven innovation
Vision
Materiality
for Driving
FrameworkTrack
Innovation
1
4 3
25
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
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
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
Different forms of Disclosure
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
Governance…
HRD
Identification of
improvement
Projects thro
SDM
Prioritization of
projects
Registration of
projects
Integration of
improvement
projects.
AKE-UP framework
1
2 3
Strategic Level at Board
Business Level at Senior Level
Operational Level at Working Level
Thank You
cyrilsunil@gmail.com

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Sustainability for Innovation & framework...

  • 1. Sustainability a Opportunity …. Cyril Danthi…
  • 2. 21st Century Problem Poverty Natural Resource Constraints
  • 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
  • 4. Sustainable Development to Sustainability Profit People Planet Sustainability
  • 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
  • 7. 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.”
  • 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
  • 19. Different forms of Disclosure
  • 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
  • 21. Governance… HRD Identification of improvement Projects thro SDM Prioritization of projects Registration of projects Integration of improvement projects. AKE-UP framework 1 2 3 Strategic Level at Board Business Level at Senior Level Operational Level at Working Level