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Sustainability for Innovation & framework...

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  1. 1. Sustainability a Opportunity …. Cyril Danthi…
  2. 2. 21st Century Problem Poverty Natural Resource Constraints
  3. 3. 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
  4. 4. Sustainable Development to Sustainability Profit People Planet Sustainability
  5. 5. Shareholder to Stakeholder Value Profit People Sustainability Investor CustomersSuppliers Communities Govt / Regulators Public NGO / Media
  6. 6. Sustainability Issues Stakeholder Social issues Environmental issues Suppliers Wages and benefits Conditions of work Safety. Emissions, effluents, and waste Carbon footprint Water consumption Investors Managing community expectations Social issues in the supply chain Product safety Environmental performance Security of supply of natural resources Employees Occupational health and safety Freedom of association Capacity building Environmental conditions at the workplace Emissions, effluents, and waste Customers Product safety Product performance Resource consumption during usage Packaging material disposal Communities Infrastructure development Better livelihood opportunities Improved quality of life Emissions, effluents, and waste Natural resources availability - water, forests
  7. 7. 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.”
  8. 8. 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
  9. 9. 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
  10. 10. 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’
  11. 11. 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 use reduced 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 direct relevance 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/ or environmental benefits? • Is it applicable to other sectors/ areas? • Is it commercially viable?
  12. 12. Impact Matrix for identifying solutions.. Idea / Solutions Approach Business Impact Benefits
  13. 13. 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
  14. 14. Innovation Path…InnovationProfitabilityCapacity Time 
  15. 15. 5 steps on the road to sustainability-driven innovation Vision Materiality for Driving FrameworkTrack Innovation 1 4 3 25
  16. 16. 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
  17. 17. Improvement Framework HRD H Identification of improvement Projects Prioritization of projects Registration of projects Review of Improvement Projects Integration of improvement projects. framework Define Measure Analyze Improve Control L M H Efforts LM Impac t 1 2 3 4 5 Define – Project purpose and scope Measure – Current performance Analyze – cause and confirm with data Improve – by removing variations and non value added activities Control – integration with ISO, SOP, Office Order
  18. 18. 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
  19. 19. Different forms of Disclosure
  20. 20. GRI - Framework ECONOMIC • 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
  21. 21. Governance… HRD Identification of improvement Projects thro SDM Prioritization of projects Registration of projects Integration of improvement projects. AKE-UP framework 1 2 3 Strategic Level at Board Business Level at Senior Level Operational Level at Working Level
  22. 22. Thank You cyrilsunil@gmail.com

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