1. Business Models
for Sustainable
Development
State Level Conference on
‘Indian & Global Perspectives on Social
Responsibility, Ethics & Sustainability’
08-01-2017Mr. Sagar V. Chavan, Ms. Shailee Kumar 1

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The Brundtland Report defines Sustainable development as
“development that meets the needs of the present without compromising the
ability of future generations to meet their own needs”.
Three Pillars of Sustainable Development
(Triple Bottom-Line)
• People (Society)
• Planet (Environment)
• Profit (Economy)
The Earth Council later refined the concept, holding that sustainable development “should be
economically viable, socially just, and environmentally appropriate” (Payne and Raiborn 157).

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Sustainable Development Goals

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A report by Scottish Enterprise says that,
A sustainable business model is an approach to offering goods or services that
provides financial benefits for the business, helps to improve the natural
world and provides social benefits for employees and the local community.
A sustainable business will make profits over the long term whilst not causing
environmental damage. The sustainable business model provides a
competitive advantage by aligning profit and environmental objectives.
Ref: “SUSTAINABLE BUSINESS MODELS”, a discussion paper produced by Scottish Enterprise.

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Ref: Tata Consultancy Services, Corporate Sustainability report (2013-14), pg. 18

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Ref: “Sustainable Business Model” - A Report by Scottish Enterprise

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Every Business Division/ SBU at ITC is
run by a Chief Executive also
responsible for the sustainability
performance of the business unit. Each
Division/ SBU is also responsible for its
innovation and creativity for the
competitive edge. This decentralized
structure with central oversight and
accountability provides scope for
sustainability and innovation to
interface at ITC. This is reflected through
company-level targets on energy
efficiency and emission and waste
reduction, whereas innovation in new
business models such as the e-choupal
happens within the agri-business unit.
ITC’s ‘Carbon Committee’ looks after
the company strategies to reduce its
climate footprint.
Ref: Indian Companies With Solutions That The World Needs- Report by WWF &CII

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Strategy:
ITC’s strategy to invest in developing societal capital and address environmental challenges through
large-scale implementation of socially relevant business models entails costs that constitute a drag on
the financial bottom-line in the short term. However, the company believes that shareholders and
other stakeholders would greatly benefit over the long term as a result of these investments, by
creating a more sustainable organisation capable of creating sustainable value.
According to the company, the key to corporates sustaining a meaningful strategy for constructive
social action lies in the ability to create strong market drivers that incentivise CSR. An enlightened
consumer, by exercising a choice in favour of ‘socially responsible’ enterprises, can unleash a
powerful force of incentives.
Having integrated sustainability into its core business processes, ITC’s business models, crafted
innovatively, have not only embedded societal contribution, but have also resulted in significant
benefits for the company.
Sustainability driving innovation

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Sustainability impacts
1. Greenhouse Gas Emission
Conserving energy
Using renewable sources of energy
Creating a positive carbon footprint through forestry initiatives
2. Water Management
Water Conservation
Waste Water Disposal
3. Solid Waste Management
Reduction of waste per unit of output
Recycling of all wastes generated by operations
Maximum reuse of the wastes as raw material

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Ref: Indian Companies With Solutions That The World Needs- Report by WWF &CII
Remuneration of the Vice President and
Global Head of Corporate Sustainability,
and the Head-Health, Safety and
Environment, is a mix of fixed and variable
components, linked with the organisation’s
performance in the area of corporate
sustainability.
TCS also operates on the Tata Business
Excellence Model (TBEM) which ensures
the strategic fit of its sustainability efforts
to business operations.

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Strategy:
The nature of TCS business does not contain highly polluting processes. However, the industry does
have an environmental footprint that is worthy of reducing. Also, it can help other industries and
governments with technology-based solutions to tackle sustainability challenges.
Sustainability driving innovation
1. Farmer's Application: Project ‘mKrishi’
2. Andhra Pradesh (AP) Online
3. National Rural Employment Guarantee Scheme (NREGS) Solution
TCS believes that fundamentally its products, services and operations do not have any significantly
adverse impact on the environment and society. However, to minimise any direct or indirect impact,
TCS is taking measures to ensure that the company, and its suppliers and vendors use environment-
friendly components, and abide by regulations in the use of labour, pollution control, and so on.
Sustainability Impact

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1. Making the Business Case
Often, the rhetoric surrounding sustainability and “green” practices is associated with increased costs to
businesses that get passed on to consumers. Sometimes, however, the exact opposite is true.
The problem for your company might be more fundamental. Sustainability can be difficult to value from a
monetary stand-point.
2. Developing Metrics to Assess Initiatives
Providing those metrics, however, can be difficult. The risks of not providing for a new, sustainable world
aren’t fully understood.
3. Engaging Management and Colleagues
In a recent survey of 700 businesses done by sustainability consultancy 2degrees, 65% of respondents
said that convincing senior leadership and management to stand behind sustainable practices was the
greatest challenge in making a change.
Ref: http://www.colorado.edu/sustainablepractices/2015/12/17/top-3-sustainability-challenges-business

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Four Strategies for Risk Mitigation:
1. Risk Acceptance
2. Risk Avoidance
3. Risk Limitation
4. Risk Transference
(Ref: https://www.mha-it.com/2013/05/four-types-of-risk-mitigation/)
Better management of risks that arise from sustainability issues begins with detecting key risks of
operational disruptions from climate change, resource scarcity, or community issues. Faced with potential
supply constraints, Nestle launched a plan in 2009 that coordinates activities to promote sustainable
cocoa: producing 12 million stronger and more productive plants over the next ten years, teaching local
farmers efficient and sustainable methods purchasing beans from farms that use sustainable practices
and working with organisations to help tackle issues like child labour and poor access to health care and
education
(Ref: The business of Sustainability: Putting it into Practice, Shiela Bonini and Stephen Gormer, The McKinsey and Company)

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1. Baharin, Izdihar and Dr. Ilham Sentosa. "Sustainable Development And Multinational Business". IOSR
Journal of Business and Management 1.3 (2012): 50-56. Web.
2. Emma Wilson, James MacGregor, Duncan Macqueen, Sonja Vermeulen, Bill Vorley, Lyuba Zarsky “Business
models for sustainable development: innovation for society and environment” IIED (May 2009)
3. “SUSTAINABLE BUSINESS MODELS”, a discussion paper produced by Scottish Enterprise.
4. Payne, D.M. & Raiborn, C.A. Journal of Business Ethics (2001) 32: 157. doi:10.1023/A:1010726830191
5. Winston, A. (2017). 9 Sustainable Business Stories That Shaped 2016. [online] Harvard Business Review.
Available at: https://hbr.org/2016/12/9-sustainable-business-stories-that-shaped-2016 [Accessed 4 Jan.
2017].
6. Acosta P., Acquier A., Carbone V., Delbard O., Fabbri J., Gitiaux F., Manceau D., Ronge C. “Innovation+
Sustainable Development= New Business Models”. ESCP Europe & weaveAIR: 8. Web

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Prof. Ajay
Prof. Amol

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Thank You
Open for Q&A