sustainability for innovation & framework
TRANSCRIPT
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 Planet
Sustainability
Investor
Customers Suppliers
Communities Govt /
Regulators
Public NGO / Media
Sustainability Issues
Stakeholder Social issues Environmental issues
SuppliersWages and benefitsConditions of workSafety.
Emissions, effluents, and wasteCarbon footprintWater consumption
InvestorsManaging community expectationsSocial issues in the supply chainProduct safety
Environmental performanceSecurity of supply of natural resources
EmployeesOccupational health and safetyFreedom of associationCapacity building
Environmental conditions at the workplaceEmissions, effluents, and waste
Customers Product safetyProduct performance
Resource consumption during usagePackaging material disposal
CommunitiesInfrastructure developmentBetter livelihood opportunitiesImproved quality of life
Emissions, effluents, and wasteNatural 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 usereduced 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 directrelevance
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/ orenvironmental 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…Innovation
Profitability
Capacity
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
improvemen
t projects.
framework
Define
Measure
Analyze
Improve
Control
L M H Efforts
LM
Impa
ct
12 3 4 5
Define – Project purpose and scope Measure – Current performanceAnalyze – 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 - FrameworkECONOMIC• 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
improvemen
t projects.
AKE-UP framework
12 3
Strategic Level at Board
Business Level at Senior Level
Operational Level at Working Level
