prepared by: nicholas anasinis maria ismail patricia jurca lei yang corporate sustainability workout...
TRANSCRIPT
PREPARED BY: NICHOLAS ANASINIS MARIA ISMAIL PATRICIA JURCA LEI YANG
CORPORATE SUSTAINABILITY WORKOUT
TEN YEAR SUSTAINABILITY PLAN
APRIL 30, 2010
GlobalPurpose
philanthropycommunity
Tata WaymeasurableImpact Identity
expa
nsio
nst
akeh
olde
rs
Profitleadership
tensionvalues
Acco
unta
bilit
yCh
ange Trust
Conflict
Growthreputation
Culture
Corporate Sustainability (CS) is integral to value-creation in our businesses through the
enhancement of human, natural and social capital complementing their economic and financial growth
in order to give the enterprise an enduring future and also help create and serve a larger purpose, at
all times. It facilitates accountability to all stakeholders as a systemic practice.
HOW ARE WE GOING TO GET THERE?
Establish a whole system approach to sustainability
•Stay true to the Tata values throughout the supply chain•Capitalize on sustainability as a value driver•Meet & exceed regulatory and industry standards in target markets•Manage externalities effectively
Action Plan
Supply Chain Initiatives
Governmental Initiatives & Industry
Standards
Product Differentiation, Product Development
& Innovation
ACTION PLANEstablishing business practices that dictate a holistic approach to sustainability. 0 1 2 3 4 5 6 7 8 9 10
PRODUCT DIFFERENTIATION, PRODUCT DEVELOPMENT & INNOVATION
Identify companies within the Tata group which are leaders in sustainability oriented product and process differentiation and innovation
Identify strengths/capabilities that make that differentiation and innovation possible
Develop a replicable model for product differentiation and innovation which includes a filter for being mindful of possible externalities from different perspectives when articulating solutions to unmet social/environmental needs in target markets
Utilize this model to improve product differentiation, development and innovation
GOVERNMENT INITIATIVES & INDUSTRY STANDARDS
Understand regulatory environment and industry standards in target markets
Establish business practices to exceed the most stringent regulatory requirements and industry standards
Apply these superior Tata standards consistently across different Tata companies
Identify and leverage opportunities to partner with government for policy development incorporating Tata's superior environmental and social standards
SUPPLY CHAIN INITIATIVES
Identify best practices across sector
Develop criteria for supply chain audit
Supply chain mapping: identify all suppliers
Conduct supply chain audit
Encourage suppliers to adopt best practices
Mandate suppliers to adopt best practices
HOW ARE WE GOING TO GET THERE?
Apply a sustainability lens to acquisitions
•Acquisitions are a major part of Tata’s growth strategy
•Lower integration costs
•Reduce risk to reputation
Action Plan
Criteria to evaluate ‘sustainability fit’ of target acquisition
Post acquisition sustainability
implementation
ACTION PLANIncorporating sustainability into Tata’s acquisition strategy. 0 1 2 3 4 5 6 7 8 9 10
CRITERIA TO EVALUATE ‘SUSTAINABILITY FIT’ OF THE TARGET ACQUISITION
Find sustainability exemplars by sectorIdentify strengths/capabilities that make that sustainable model workCompare these strengths/capabilities with the strengths of an equivalent Tata companyIdentify the gaps to highlight the strengths needed by the Tata company to improve
Develop and implement benchmarked practices in the company•Identify challenges faced in implementation•In hindsight, identify what features/characteristics of the company played a key role in making this implementation challenging
Use these features/characteristics as a screening criteria for future acquisitions in that industry •Learn with each subsequent acquisition and refine 'sustainability fit' criteria
POST ACQUISITION SUSTAINABILITY IMPLEMENTATION
Implement post-acquisition TQMS and TCCI processes/initiatives to the acquired company e.g. established frameworks to measure sustainability impacts such as the Tata Index for sustainable human development or abatement strategies for climate change
HOW ARE WE GOING TO GET THERE?
Build a global brand
• Create a shared vision
• Be known
• Effectuate change
Action Plan
InternalInitiatives
ExternalInitiatives
LeadershipInitiatives
Leadership with trust
ACTION PLANBuilding a global Tata brand that embodies the Tata values. 0 1 2 3 4 5 6 7 8 9 10
LEADERSHIP
Identify successor to Ratan Tata to take the Tata group global while embodying its values
Continue to have commitment to sustainability and embodiment of the leadership protocol as key criteria in succession planning for all key positionsDevelop and execute sustainability training programs for key executives that promote a holistic approach to sustainability and address the implications and opportunities of truly making Tata a global brand from learnings of the initial sustainability strategies
EXTERNAL
Identify a major issue within each target market and focus on which issue can be addressed with current Tata capabilities (utilize model for product/process innovation and differentiation)Identify and engage strategic partners (business, NGO, government) to affect change by providing access to required resources/capabilities in the target marketCelebrate success of sustainability initiatives in the target markets through brand building advertising campaignsINTERNAL Design 'Employee Sustainability Program' aimed at the local community of different target markets to engage Tata employees there and achieve cultural alignment and shared value entrenchment in Tata's global employee base
Provide employees opportunities to work on self-identified sustainability projects, on paid company time, which are aligned with their unique technical skills and competencies
Celebrate employee success stories
WHY EVA?
• EVA adopters deliver greater shareholder value
• Useful to analyze value driver
• Creates an ownership mindset in employees
• Better tool for strategic resource allocation
HOW IS VALUE CREATED?
+Higher
EBIT Margin
Wider Access
to Capital
HOW DOES IT LOOK OVER 10 YEARS?
WHAT ARE THE CHALLENGES?
• Implementation
• Organizational structure
• Access to capital
• External factors
SO… DO THIS TOMORROW
• Discuss implementation with TQMS and TCCI
• Identify your sustainability champions
Q & A