sustainability perspectives - indian and international

The Customer Experience Company

Industry Leaders on SustainabilityIndian and International Perspectives

Namrata Rana

https://microsite.accenture.com/sustainability/Documents/Accenture_UNGC_Study_2010.pdf

93% of CEOs believe that sustainability issues will be critical to the future success of their business

"Sustainability now has to be on everyone’s agenda, and that represents a fundamental change." - Klaus Kleinfeld, Alcoa


96%

"To be a successful and sustainable business, we must fulfill our social responsibilities and build trust with our stakeholders." Andrew Witty, Glaxo SmithKline

of CEOs believe that sustainability issues should be fully integrated into the strategy and operations of a company



91%

"Technology is the savior for sustainability issues." - Amr Sheira, CompuMe


of CEOs report that their company will employ new technologies to address sustainability issues over the next 5 years


88%

"Consumers are asking who is behind the brand, so we have to make it visible." - Paul Bulcke, Nestlé S.A.


of CEOs believe that they should be integrating sustainability through their supply chain


“1/6th of humanity lives in India. In this age of rising aspirations, increasing communications, there can be no peace if a billion plus people are discontent. India needs to follow its own economic model to achieve equitable economic success.”

The primary responsibility of business is the betterment of society. - Mukesh Ambani, Reliance Industries

photo © <A HREF=http://helloandhi.openphoto.net>Jordan Miller</A> for <A HREF=http://15386.openphoto.net>openphoto.net</A> CC:Attribution

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“You will have to be reinventing yourself all the time to be relevant to society and relevant to consumers. “

The purpose of business is to serve society. - Y C Deveshwar, ITC Group

Source : http://www.moneycontrol.com/news/brokerage-recos-fo/yc-deveshwar-making-itc-socially-responsible_462608-2.html


What are the trends driving sustainability?

9 billion 5 Trillion CulturePopulation of 9 billion

expected by 2050 Low-income consumers represent a market of

US$ 5 trillion

A culture of “consumerism” among higher income groups

Charts & Content Source : http://www.wbcsd.org/DocRoot/I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf

Photo : http://www.flickr.com/photos/o5com/5486331834/sizes/z/in/photostream/

Global drivers of consumption

http://www.wbcsd.org/DocRoot/I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf

http://www.flickr.com/photos/o5com/5486331834/sizes/z/in/photostream/

1.a Population


Population growth and economic development are driving consumption around the world and will continue to do so – especially in India.

India’s GDP is expected to rival that of Japan at around the same time, and come close to that of the US by 2050

Photo : http://www.flickr.com/photos/o5com/5486331834/sizes/z/in/photostream/



1.b Middle Class

This phenomenon may continue for the next twenty years, accelerating to 90 million new middle-income consumers per year by 2030

Indian middle class is the fastest growing segment. Estimates range from 30 million to approximately 300 million people

Photo : http://www.flickr.com/photos/o5com/5486331834/sizes/z/in/photostream/Charts & Content Source : http://www.wbcsd.org/DocRoot/



1.c Middle Class

The total consumption in India will increase, making India the fifth largest consumer market in the word by 2025.

Globalization and economic integration are giving more consumers access to more products and services.

Photo : http://www.flickr.com/photos/o5com/5486331834/sizes/z/in/photostream/Charts & Content Source : http://www.wbcsd.org/DocRoot/



60 % 170 % Human of the Earth’s

ecosystem services have been degraded

Natural resource consumption is expected to rise

Human social systems and well-being


Photo : http://www.flickr.com/photos/sharman/2872797099/

Global consumption patterns



2.a Eco Systems

Studies show that two-thirds of the Earth’s ecosystem services are in decline. According to estimates, almost a third of the Earth’s plants and animals have been lost since 1970.

30% of the Earth’s terrestrial area, comprising of forest and grassland, has been converted to urban areas

Photo : http://www.flickr.com/photos/sharman/2872797099/Charts & Content Source : http://www.wbcsd.org/DocRoot/I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf



2.b Natural Resources

Natural resource consumption by humans has increased to 125% of global carrying capacity

The most important direct drivers of biodiversity loss and ecosystem service changes are: habitat change , climate change, invasive alien species, overexploitation and pollution.




2.c Well Being

Well-being is not necessarily correlated with high levels of consumption

The New Economics Foundation’s Happy Planet Index ranks a nation’s progress based on the amount of the Earth’s resources its inhabitants use and the length and happiness of people’s lives. India has a ranking of 35.




Consumers Behaviorare concerned about environment issues

Consumer willingness is not translating into sustainable

consumer behaviorCharts & Content Source : http://www.wbcsd.org/DocRoot/I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf

Photo : http://www.flickr.com/photos/by_andy/2680078880/

The role of consumerThe role of consumers



3.a Consumers

Who is the “green/ethical/sustainable” consumer?

Many consumers have not made the same shifts in general behaviors, lifestyles and purchasing decisions. Ethical / green consumption is yet to hit mainstream in India.




3.b Digital Consumers

61 % of consumers now consider blogs a reliable source of information, and more than half trust consumer-generated media and branded websites

Consumers are increasingly turning to the Internet as a trusted source of peer-generated information




Innovation Influencing OptionsInnovative products

and services the use of marketing

and awareness the removal of

“unsustainable” products


Photo :http://www.flickr.com/photos/pingu1963/4459765256/

The role of business


http://www.flickr.com/photos/pingu1963/4459765256/

4.a Innovation

From the perspective of business, innovation is an essential driver of more sustainable consumption.

The goal of sustainable innovation is to deliver high levels of emotional and functional value, while minimizing resource use and environmental impact





4.b Choice Influence

Businesses have begun to address this increasingly relevant issue of influencing consumer choice

Choice influencing refers to a partnership between business and the consumer, which extends from sustainable production and design of products through to their selection, use and disposal





4.c Choice Editing

The role of business is to influence and educate consumers on how to lead sustainable lifestyles

Businesses edit choice by controlling elements of their supply chain or by eliminating product components that pose a risk to the environment or human health





Conclusion

We all have a role to play towards a sustainable better planet

Governments, consumers and businesses all have important roles to play in fostering sustainable consumption





International Companies

Photo : http://www.pg.com/en_US/sustainability/index.shtml

Statoil ASA - Environment & Society

Statoil has been ranked as the No 1 sustainable company. The environment & society programs focus on climate, energy health & safety, Biodiverisity, Clean air, Emissions to water.

http://totalgadha.com/tgtown/voxpopuli/?p=179

Photo : http://walmartstores.com/sustainability/9292.aspx

Walmart - Sustainability Score Card

Walmart’s sustainability index helps create a more transparent supply chain, driving product innovation and ultimately providing their customers with information they need to assess products’ sustainability.

http://walmartstores.com/sustainability/9292.aspx

Photo : http://www.nikebiz.com/crreport/content/environment/4-1-0-overview.php?cat=overview

Nike - North Star

Nike has developed North Star to define what sustainable products and a sustainable company would look like.

Its grounded in addressing sustainability at the very core of our business, beginning with design.

http://totalgadha.com/tgtown/voxpopuli/?p=179

Photo : http://www.jsainsburys.co.uk/index.asp?PageID=424&section=&Year=Latest&NewsID=1474

Sainsbury - National Grid Initiative

Sainsbury's is using experimental technology to help reduce the UK's dependence on fossil fuels.

Many people are unaware of the strain the National Grid comes under at peak times, as coal-fired power stations across the country have to be ‘switched on' to meet the increased demand on the UK's electricity supply.

http://www.jsainsburys.co.uk/index.asp?PageID=424&section=&Year=Latest&NewsID=1474

Photo : http://www.ikea.com/ms/en_US/the_ikea_story/people_and_the_environment/the_never_ending_list.html

Ikea - The Never Ending list

Ikea’s The Never Ending list consists of all the improvements they have made for people and the environment so far contributing to the sustainability aim.

This list features all initiatives taken for Environment, People and Planet.

The latest initiative is that Ikea plans to build a wind farm that will supply electricity to all 17 of its stores in Sweden.

http://www.ikea.com/ms/en_US/the_ikea_story/people_and_the_environment/the_never_ending_list.html

http://www.bloomberg.com/news/2011-02-16/ikea-to-build-wind-energy-park-in-sweden-to-power-17-stores.html

Indian Companies

Source : http://www.iocl.com/Aboutus/globalcompactinitiative.aspx

Indian Oil - Rank No 1 ET 500

“Our primary concern is still energy security and how we can translate investments in energy into affordable products for our fellow citizens”

Excerpts from Sustainability Report - Environment and Social

B.M. Bansal Chairman & Director

Environment

Social

- Optimum utilization of Raw Materials - Energy Conservation - Clean Development Mechanism (CDM) Projects - Initiatives to control / reduce emissions - Water Conservation through rain water harvesting

- Community development programs - Providing clean drinking water - Facilitating education of children - Organising health checkup camps

http://www.iocl.com/Aboutus/globalcompactinitiative.aspxER

Source : http://www.ril.com/downloads/pdf/RIL_SR2007_08.pdf

Reliance Industries - Rank No 2 ET 500

“We realize that as a responsible business, the circle of our sustainability endeavors must only grow wider."


Mukesh Ambani CMD

Environment

Social

- Consumption and conservation of natural resources - Energy conservation measures - Climate change through CDM projects - Conserve and propagate bio-diversity - Waste reduction and utilisation are of prime focus at all manufacturing division

- Rural development programs - Women Empowerment initiatives - Healthcare Facilities - Education

http://www.ril.com/downloads/pdf/RIL_SR2007_08.pdf

Source : http://www.tatasteel.com/corporate-citizen/pdf/csr-2008-09.pdf

Tata Steel - Rank No 3 ET 500

“We strive constantly to improve the sustainability of both our manufacturing processes and our finished materials”


B. Muthuraman, Vice Chairman

Environment

Social

- Reduce our carbon dioxide emissions. - Develop sustainable new products and services that generate lower co2 emissions through the life cycle - Developing sustainable packaging solutions - Adapting/ Creating technologies / infrastructure to have sustainable energy mix

- Health & welfare - Scholarships & Education - Skill development


Source : http://www.tatasteel.com/corporate-citizen/pdf/csr-2008-09.pdf

BPCL - Rank No 4 ET 500

“To achieve these aspirations, we now need to refine the strategy and detail the initiatives”


Ashok Sinha Chairman & MD

Environment

Social

- Energy and Climate change are important - Develop new clean technology - Consuming natural resources responsibly - Water conservation is priority

- Nurturing people, fostering talent - Ensuring safety & security and promoting health - Developing sustainable communities


Source : http://www.hindustanpetroleum.com/En/UI/CSRGCEnvironment.aspx

HPCL - Rank No 5 ET 500

Arun Balakrishnan Chairman & MD

Environment

Social

- Social Activities are part of CSR.

HPCL does not have a sustainability report, but they do have Environment, Safety policy. The have a wide range of social activities under CSR initiatives.

Sustainability report not available online


Source : http://www.ongcindia.com/download/Corp%20Sust%20Report/ONGC_Sustainability_Report_2009-10.pdf

ONGC - Rank No 6 ET 500

R .S. Sharma Chairman & MD

Environment

Social

- Sustainable Production - Sustainable Technology and Field Services - Sustainable Exploration - Managing our water footprint - Managing and reducing our environmental impacts - preventing oil spill

- Improving the lives and livelihood of the community - Education - Women Empowerment

“We have demonstrated our environmental responsibility and commitment towards sustainability through our enterprise wide sustainability initiatives and cross functional groups.”


http://www.ongcindia.com/download/Corp%20Sust%20Report/ONGC_Sustainability_Report_2009-10.pdf

Source : www.statebankofindia.com

SBI Bank - Rank No 7 ET 500

O. P. Bhatt Chairman

Environment

Social

- No CSR policy or activities were identified.

SBI does not have a sustainability report, also no CSR policy or initiatives were identified on their website.


http://www.statebankofindia.com

Source : http://www.hindalco.com/about_us/sustainability.htm

Hindalco - Rank No 8 ET 500

Kumar Mangalam Birla Chairman

Environment

Social- Health checkups - Education - Skill development - Women empowerment - Agricultural support

- Technology for greenfield projects to conserve energy - Waste Management - Controlling Emissions - Rehabilitation of resources - Recycling of industrial waste



Source : http://www.icicifoundation.org/uploads/annual/pdf_20101101055222330.pdf

ICICI Bank - Rank No 9 ET 500Excerpts from Sustainability Report

Mr. K.V. Kamath Chairman,

Environment

Social- Under the CSR initiative the focus is on elementary education, Primary health and access to finance

- ICICI Foundation part of ICICI Bank focuses on Environment. - ICICI’s Environmentally Sustainable Finance Group focuses on research and action related to environment - Carbon Emission, Climate change, environment policies are some of the initiatives under sustainability


Source : http://www.sail.co.in/aboutus.php?tag=company-policies

SAIL - Rank No 10 ET 500

Mr. C. S. Verma Chairman,

Environment

Social- Corporate CSR policy is available, activities could not be identified.

SAIL does not have a sustainability report, but they do have a corporate environment policy.



Source : http://www.ntpc.co.in/index.php?option=com_content&view=article&id=10&Itemid=101&lang=en

NTPC - Rank No 11 ET 500

Mr. Arup Roy Chaudhury Chairman,


Environment

Social- The CSR initiatives focus on Resettlement & rehabilitation. - Community Development, - Scholarship programs - empowering People

- NTPC has a environment policy which undertakes various initiatives - CenPEEP - Program to reduce green house gas emission. - Ash Utilisation - Afforestation

http://www.ntpc.co.in/index.php?option=com_content&view=article&id=10&Itemid=101&lang=en

Source : http://www.tatamotors.com/sustainability/sustainability.php

Tata Motors - Rank No 12 ET 500

Mr. P M Telang MD

Excerpts from Sustainability Report

Environment

Social- The CSR initiatives of Tata motors focus on - Health - Employability - Education

- Tata motors has various initiatives under the following two core aspects. - Reduction of environmental pollution and regular pollution control drives - Restoration of ecological balance. - Initiatives like conservation of water, soil and plantation are carried out.

http://www.tatamotors.com/sustainability/sustainability.php

Source : http://www.mrpl.co.in/downloads/MRPL22ND%20ANNUAL%20REPORT_10.pdf

MRPL - Rank No 13 ET 500

Mr. R. S. Sharma Chairman

Environment

Social- The Social initiatives could not be identified.

- MRPL has environment policy which has the following initiatives . - Landscaping - Water Treatment Plant - Green Belt


http://www.tatamotors.com/sustainability/sustainability.php

Source :http://www.larsentoubro.com/lntcorporate/common/ui_templates/HtmlContainer.aspx?res=P_SIA_CSM&tabid=SIA_0

Larsen & Toubro - Rank No 14 ET 500

Mr. A. M. Naik Chairman & MD

Environment

Social- The Social initiatives focus on - Healthcare - Welfare of Employees.

L & T major focus is on - Energy & Water conservation - Emission control

“For us 'sustainability' is not just 'survivability' but 'thrivability'.


http://www.larsentoubro.com/lntcorporate/common/ui_templates/HtmlContainer.aspx?res=P_SIA_CSM&tabid=SIA_0

Source : http://www.cpcl.co.in/index.htm

CPCL - Rank No 15 ET 500

Mr. K. Balachandran MD

Environment

Social- The Social initiatives as part of CSR focus on Education, Health Care, Sanitation, Water supplies, Sports development and, Women empowerment

The CPCL environment policy focuses on - Reducing Greenhouse Gas emissions - Zero Discharge - Usage of Solar power


http://www.cpcl.co.in/index.htm

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sustainability perspectives - indian and international

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