addressing sustainable development guidelines cps es efficient_carbon
DESCRIPTION
The Department of Public Enterprises has given out notifications to Central Public Sector Enterprises (CPSEs) or PSU companies to undertake Sustainable Development as a mandatory function of their MoU with them. We believe it is a great opportunity for these companies to undertake various activities under this banner and showcase different best practices in this domain.We believe that the PSUs have to take a route that is quite different from the normal Private Sector companies in approaching Sustainable Development. To address this, we have made a presentation for the CPSEs to give a direction on complying with these guidelines and how to maximise this opportunity to become Sustainability led organisations. Do have a look at the presentation below and get in touch with us for a discussion on how PSU's should be approaching Sustainable Development.TRANSCRIPT
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Approaching Sustainable
Development Guidelines for
Public Sector Undertakings
EfficientCarbon
Guidelines Set by Department of Public Enterprises, Govt. of India
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What are the Guidelines on Sustainable
Development Initiatives?
• “Sustainable Development” was included as a compulsory element
in the MoU under the “non-financial parameters” with a mandatory
weightage of 5%.
• Sustainable Development should not be classified in both the
categories of R&D or CSR.
• Sick and / or loss making enterprises need not commit any specific
expenditure to SD but may try to attain SD objectives through saving
/ conservation activities or by collaboration / cooperation with other
private / public organizations.
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How is Sustainable Development Defined?
“Development that meets the needs of the present
without compromising the ability of future generations
to meet their own needs. Sustainable Development
involves an enduring and balanced approach to
economic activity, social progress and
environmental responsibility”.
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Investments & Responsibilities
• Resources shall include human resources, organizational
infrastructure, technology and financial resources.
• Roles and responsibilities shall be defined, documented and
communicated to facilitate the effectiveness of the projects/activities.
• The minimum financial resource allocation for CPSEs is
Category of CPSEs Net Profit after Tax (previous Year)
Minimum expenditure for SD projects / activities (Financial Year) (% of Profit)
Less than 100 crore 0.5% of Profit After Tax
100 crore and above Rs. 50 Lakhs plus 0.1% of Profit After Tax exceeding 100 crores.
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Scope of Activities that can be Implemented
• To qualify as a Sustainable Development activity the project:
– Needs to have a clear start date, end date and a specifically allocated budget.
– Needs to have monitor-able and measurable performance indicators clearly
identified before the commencement.
– Should not be a core business of the CPSE.
– Should not be a project implemented in compliance of applicable legal
requirements.
– Should not primarily benefit the staff of the CPSE and
– Should not be mere grants/assistance to organisations and institutions
Schedule A Schedule B
Waste Management Carbon Management
Water Management Supply Chain
Energy Management / Renewable Energy External Charters / Mandates
Biodiversity Conservation Life Cycle Analysis
Natural Resource Management SD Reporting
Training
Any other area which may be included from time to time
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Approaching Sustainability
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Sustainability Defined
• Commitment to better long-term
business performance through
improved Social, Economic and
Environmental practices.
• A sustainable enterprise
– looks beyond revenues
– while working for all round social and
economic development
– through ethical business practices
– creating consumer loyalty and brand
image
– which hold good in the long term.
Sustainability
Social
Environmental Economic
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Sustainability Helps You Achieve
New
Markets
Marketplace Differentiation
Investors
Cost Savings and Asset Value
Compliance
Customers
Employees
Companies that have embraced sustainability have found out that it is
good for their business. It is not complex science, most of it is just good
business management.
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Sustainability Vs CSR
While CSR is more of Philantropy and Giving, Sustainability talks about how this
can be utilised as a strategic advantage and reap benefits in the long term.
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What Stage Are You In?
Compliance
• “Will do it only if it is mandatory”
Lip Service
• A few projects
• Greenwash
• No integrated strategy
Bundle of Projects
• Driven by enthusiasts
• Limited resourcing
• Ad hoc strategy
Management Systems
• EMS in place
• Responsibilities defined
• Short term projects carried out
Complete Integration
• Clear commitment
• Well defined Strategy
• Long term goals
• Communication processes in place.
One should look to move from left to right on this graph
to achieve the true benefits of Sustainable Development.
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While Setting a Sustainability Strategy...
• Go Deep – Integrate Sustainability into the company
strategy and standard reporting practices.
• Go Wide – Engage and Leverage the company value
chain.
• Go Long – Short Term focus and Long Term
objectives.
• Go Local – Shared responsibility that needs local
action and commitment
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Approaching Sustainability Strategy
Identification of Key Drivers
• Identifying various stakeholders
• Identifying key areas for sustainability along the value chain
Setting and agreeing upon key aims • Defining overall ‘Sustainability Vision’ • Strategy discussions among top management • Holding consultation meetings with various stakeholders
Strategies and Goals setting • Setting goals and allocating budgets • Setting implementation strategies • Setting evaluation and monitoring parameters
Implementation of action plan • Actual implementation of the strategies • Periodic review and course corrections
Reporting achievements • Developing Triple bottom line reports • Third party independent verification • Publication of Sustainability reports
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Corporate Sustainability Plan Framework
ESG Benchmarking Sustainability
Mainstream
Action Plan
Identify Business Drivers
Primary Activities
Support Activities
Sustainability Governance
Sustainability Finance
Scope of Competitiveness
Developing Leadership Competence for Sustainability Value Creation
Value-Chain
Create a Corporate Sustainability VISION
Sustainability Strategy Key-Areas
Stakeholder-Based
Management
Investor-Based Management
Corporate
Sustainability-Risk Strategic Map
External Impacts
Gap Analysis SWOT
Strategies & Goals Setting
Building Sustainability Mainstream Framework
Current & Prospective ESG
Assessment
Goals Detailing &
Breaking-Down
Implementation, Monitoring & Review Tools
Stakeholder Engagement
Process
Sustainability Communicatio
n Platform
Sustainability
Reporting
ROSS Return on
Sustainability Strategy
Sustainability Governance Strategies & Goals
Value-Chain Advantages on Sustainability Initiatives
Sustainability Finance Strategies & Goals
Framework taken from Corporate Strategy Plan: http://www.slideshare.net/JOCHAVES/corporate-sustainability-strategic-finance-governance-plan
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Step by step approach • The management should understand Sustainability, its importance, the reporting
procedures and how to strategically benefit from it.
• Setting goals, objectives and scope of the sustainability strategy for the
organisation.
– Understanding and Situating the Business Competitiveness Scope;
– Identifying the Sustainability Business Drivers;
– Sustainability as a Key-Driver for Innovation;
– Mapping and Advantaging on Sustainability Business Drivers;
– Creating the Corporate Sustainability Vision;
– The role of the Chief Sustainability Officer;
– Developing Leadership Competence for Triple Bottom Line Value Creation.
• Assessing current & prospective sustainability issues and building detailed plan
of action
– Corporate Sustainability Mainstream Framework;
– Corporate Sustainability Risk Management Platform;
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– Corporate Sustainability Accounting & Balance Sheet: Sustainability Fund Flow;
Social & environmental cost externalization/internalization decision;
– Corporate Sustainability Performance Management: Sustainability Metrics &
Business Intelligence System; Performance Rewarding.
– Evaluating ROSS – Return on Sustainability Strategy
• Developing action plans and monitoring mechanisms
• Preparing communication and reporting frameworks
– Developing Competence for Sustainability Communication and Reporting;
– Modeling Brand-CSR Integration;
– Improving the Sustainability Reputation Perception
– Preparing actual Sustainability Reports
Step by step approach
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Opportunities
• Auditing – Carbon Accounting and Management
– Water Footprinting and Management
– Energy Footprinting and Management
• Reporting – Carbon Disclosure Project
– GRI certified Sustainability Reporting
• Local Environment – Environmental Impact Assessments for your projects
– Biodiversity Conservation & Afforestation
• Neutrality – Carbon Neutrality
– Renewable Energy, Energy Efficiency, Offsets
– Water Neutrality – Rainwater Harvesting, Conservation, Recharging, etc.,
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Opportunities
• Life Cycle Analysis
– Life Cycle Impact Analysis of products (Materials, Packaging, Usage, Disposal)
• Supply Chain
– Greening supply chain – from Farm to Table
– Sustainable & Responsible Sourcing
• Training & Outreach
– Increase awareness of Sustainability among employees, labour, partners and
suppliers.
– Helping your local communities in activities that you are primarily engaged in.
• Identification of CDM Opportunities
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Sample Activity – Carbon Management
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1. Get top management and
employee commitments
2. Plan CO2 inventory for the
organisation 3. Collect Data
4. Calculate the emissions using
standard formulae
5. Agree on emissions reduction
target
6. Implement actions to reduce
the carbon footprint
7. Report the emissions in public
after getting top management permissions
Organisational Approach for Carbon Management
Processes and data adapted from WRI’s standard GHG emission calculation for offices.
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Source: www.ghgprotocol.org
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Key Deliverables – Sustainability
& Carbon Management
– Carbon Footprint Assessment
– Advice on developing a SMART Target
– Operational Carbon Action Plan (CAP)
– Situation Analysis
– Marginal Abatement Cost Curve (MACC)
– Organisational SWOT Analysis
– Carbon Management Response Plan analysis with respect to
specific Key Result Area’s (KRA’s)
– Sustainability Reports certified by GRI
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Regardless of whatever industry you are in, climate change will have a
profound impact on you, at least from a cost perspective...
A comprehensive Sustainability Strategy is the
need of the hour for any organisation to manage
these massive impacts.
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About EfficientCarbon
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Our Services
CARBON MANAGEMENT ADVISORY
SUSTAINABILITY CONSULTING
WATER MANAGEMENT
ENERGY EFFICIENCY
RENEWABLE ENERGY ADVISORY
CDM FACILITATION
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Sustainability Consulting Team Composition
Harsha Yadav
BE (ECE) and PGDM
Responsible for Financial Assessments and setting Targets
Pradeep Palelli
B. Tech in Instrumentation from BITS, Pilani
Responsible for Carbon assessment
Dr. Raj Alluri
Ph.D, MBA, M. Tech (Chemical Engineering)
Team Lead
Nisha Shetty
B.Tech (Chemical), M.Sc in Clean Technology
Environmental Law
Suresh Francis
B.Tech and M.Tech in Environmental Engineering Responsible for Energy Efficiency and CDM
Yash Divekar
BS (Chemical Engineering) Master of Engineering Management
Responsible for developing the CMRP
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Team Snapshot Harsha Yadav, Co-Founder: Bachelor of Engineering from University of Madras, PGDM from IFMR, Chennai. Worked in companies like Infosys, Godrej & Boyce and Apollo Hospitals. Experienced in Sustainability, Carbon Advisory, CDM and Energy Management. Has worked on multiple projects in Carbon Advisory & Energy Efficiency in sectors like IT, Manufacturing and Cement.
Ananth Palaniappan, Co-Founder: Bachelor of Engineering from GCE, Tirunelveli, PGDM from IFMR, Chennai. Worked in companies like Deloitte, Titan Industries and Rane Systems. Experienced in Lean Manufacturing, Total Quality Management, Market Assessment and Strategic Management.
Varun Mittal, Business Development: B.E. from Punjab University and currently pursuing his MBA from DoMS, IIT Roorkee. Varun has worked previously in Mahindra Satyam and has been an intern in Emergent Ventures and Exergy Consortium in the areas of Carbon Advisory and Solar consultancy. He works in business development and management consultancy in Carbon Advisory and Renewable Energy areas.
Pradeep Palelli , Partner: Bachelor of Engineering from BITS-Pilani. Worked with Infosys in the British Telecom account prior to joining EfficientCarbon. Experienced in Sales, CRM and IT. Pradeep works in the areas of Energy Efficiency and Renewable Energy for EfficientCarbon.
Nisha Shetty, Consultant – Environment: Chemical Engineer with an M.Sc in Clean Technology from New Castle University, UK and currently pursuing PG in Environmental Law from National Law College, Bangalore. Nisha has worked in Ista Energy Solutions, UK where she has implemented the Environmental Management System in Komatsu International, among other projects. Handles Environmental Impact Assessment, Waste Management and Development of EMS.
Om Prakash, Project Lead: Bachelor of Engineering in Electrical and Electronics Engineering from Vinayaka Missions Research Foundation. Om works on Solar related projects for EfficientCarbon and is pursuing his research on "Total Energy Efficiency of Building Through Solar Passive Design". Worked with Techdefence prior to joining Efficient Carbon.
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Consultants - Advisors Sanjay Gadhalay, Mentor and Advisor: BE from IIT Delhi and MBA from IIM Bangalore. 21 years of experience in Consulting, Sales and Business Development. Worked with companies such as GE, Technofast, Satyam and UB Group. He was also the founding CEO of Center for Climate change and Environmental Advisory for Govt. of AP, India. Sanjay advises EfficientCarbon in the areas of sustainability, strategic carbon management and green branding.
G. Subramanyam, Chief Consultant – Energy Efficiency: B. Tech from SV University and PG Dip in Energy Management from NPC, Chennai. Bureau of Energy Efficiency (BEE) Certified Energy Auditor, IGBC – Green Building Professional with over 22 years of proven success in undertaking Energy Conservation projects. Awarded three times Energy Auditor of the Year by BEE from 2007-2010. Handles Energy Efficiency Projects, Project Development & Registration of CDM projects with UNFCCC.
Dr. Raj Alluri, Chief Consultant – Sustainability: Dr. Raj Alluri specializes in the use of Sustainability and Information & Communication Technologies for business transformation, and competitive and strategic advantage. He has an experience of 32 years in business development, marketing, IT strategy of which 8 years were spent in the field of Sustainability and Climate Change. Dr. Alluri has worked with companies like Indian Oil, IBM, TCS, Alpha Auctus and Biosphere Capital among others. He is certified by Global Reporting Initiative (GRI) authority and a Certified Practitioner of ISO 14064 & ISO 14001. Dr. Alluri advises and works on projects related to Sustainability Reporting (CDP/GRI), Carbon Accounting and Clean Development Mechanism.
P. Srirama Raju, Chief Consultant – Solar and Renewable Energy: Mr. Srirama Raju is a retired General Manager from NEDCAP, served 35 years in Government sector and has got 26 years of experience in renewable energy field especially in Solar Energy programs implementation. Provided end to end consultancy for 30 projects totaling 30MW in the JNNSM phase 1 implementation. He is also the consultant for multiple government bodies (EPTRI, UNIDO, MNRE), voluntary organisations (SEED, ECM, SESI, IEI) and private companies (MAYTAS INFRA, NCC, REGENCY CERAMICS, Dr.Reddy’s, etc.,) for establishing grid based and off-grid solar power projects.
Dr. Padma Raju, Chief Consultant – Bio Diversity: Over 40 years of service in soil research and bio diversity conservation and retired as the Director of Research in Acharya N G Ranga Agricultural University (ANGRAU). Implemented various soil studies and irrigation projects with Indo-Dutch and other development organisational collaborations. Expertise and experience in rainwater harvesting for different areas and developing large scale bio diversity based plantations.
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Selected Clients
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Contact us
Harsha : +91 9000345588
Pradeep: +91 9052224701
Office: +91 40 40128206
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www.twitter.com/efficientcarbon
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Thank You
"Sustainability is not only absolutely necessary considering the
situation our planet is in, we as companies are also overdue to
take responsibility. We can't wait for governments. Companies
have to lead the way…
- Jochen Zeitz, CEO, Puma Corp.