Businesses must strategize to go "beyond compliance". Given the myriad of legislations, market forces, community expectations and demands from investors; mere regulatory compliance is not going to be enough. This presentation brings out the above perspective.

1. Moving Beyond
Compliance……….
Prasad Modak
Executive President, Environmental Management
Centre, Mumbai, India
Prasad Modak 1
Environmental Management Centre LLP

2. Structure of the Presentation
Basic elements of Environmental Compliance
Environmental Compliance and Business Risks
Can Business risks become Opportunities?
Global Trends on going Beyond Compliance
Creating the Change
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Environmental Management Centre LLP

3. Business, Government and Environmental Compliance
Business Government
Sets policies, standards and
Implements procedures
Reviews, inspects and monitors
Operates
Penalizes / provides incentives
Reports
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Environmental Management Centre LLP

4. Meeting Environmental Compliance – Key Steps
Be Aware of the Relevant Legislations
Know Appropriate Standards and Procedures
Invest in Meeting Compliance
Conduct Self-Assessment
Take Corrective Actions
Do Required Reporting
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Environmental Management Centre LLP

5. Regulators of Environmental Compliance
Empowered regulatory agencies e.g. Pollution Control
Board enforces environmental legislation.
Environmental Cells in Line Ministries, other relevant
Government Departments and Local Government
Institutions have additional Checks and Directives
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Environmental Management Centre LLP

6. Standards and Regulations Evolve
Tightening of effluent standards - Case of a Chemical
industry in Navi Mumbai. Phenol standard in effluent
100 mg/l to 1 mg/l
Technology shifts – Chlor alkali industries from
mercury cell to membrane technology
Material restrictions – Ozone Depleting Substances,
Azo dyes
Limiting resource consumption – Water consumption
per ton basis
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Environmental Management Centre LLP

7. Environmental Regulations are “invading” Product Life Cycle
Packaging REJECTS WASTE BOD
Sludges
PRODUCTS ENVIRONMENTAL
REGULATIONS RESIDUE
Formaldehyde
RESOURCES PROCESS
Chlorine bleaching
Water Modak
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Environmental Management Centre LLP

8. The New Form of Regulation
Multiple Agents, Multiple Pressures, Multiple Incentives/Disincentives
Government, International Agreements
Business Labor
Market Consumers
Investors Neighborhood
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Environmental Management Centre LLP

9. Compliance is dynamic !
Compliance can be complex !
Business needs to plan for meeting Compliance
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Environmental Management Centre LLP

10. Risks of Environmental Non-Compliance?
Principal risks are business interruption or .. even
business closure - public backlash, leading to
damaging of reputation, loss of the market and
withdrawals by the investors!
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Environmental Management Centre LLP

11. Impact of Non Compliance
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http://www.greensupplyline.com/showArticle.jhtml?printableArticle=true&articleId=192300815
Environmental Management Centre LLP

12. Typical Business Risks and Associated Factors
Supply risk Availability, quality, timeliness of needed
raw materials
Technology risk Choice of technology and impact on Quality,
Quantity and Price of products
Market risk Company image, consumer preferences,
new competitors
Labor induced
risk Lack of skill, quick turnaround of labor
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Environmental Management Centre LLP

13. “Environment” pervades the business risks
An Illustration
Scenario: Water intensive industry; Quality, Quantity and Reliability of
continuous and adequate water a major problem.
Risks: A supply risk on water led to high processing
costs as more pre-treatment of water was
needed to meet the norms
Labor induced risk due to
Poor quality water and unreliable supply inadequate training and poor skills
compromised technology choice and of staff resulted in inefficient water
therefore process efficiency and product usage practices, low Right First
quality was hampered – eco-labels were Time requiring reprocessing, more
not met - a technology risk ! generation of effluents
Poor product quality, high
production costs, lack of reliability
in delivery led to fall in market
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position - aManagementrisk ! LLP
Environmental
market Centre

14. Can Risks become
Opportunities?
Connecting Environmental
Compliance with
Competitiveness is the Key

15. Tool-box of Business initiatives
EMS/IMS, Sustainable Consumption &
Production, Codes of Conduct, Eco-
lables/Product Sustainability, Design
Beyond for Sustainability, Extended Producer
Responsibility, Minimizing Carbon
Compliance Footprint, Greening of
Supply Chains, Sustainability
Reporting, Practicing CSR
Compliance Fiscal incentives / penalization
Regulations, standards, procedures
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Environmental Management Centre LLP

16. A cost- effective way to meet Compliance is
To go beyond
COMPLIANCE

17. Taking the Leap from Risk to Opportunity
Beyond
Compliance
Compliance
Risk Aversion
Risk Aversion
Business Profiting
Initiatives Branding
Leading
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Environmental Management Centre LLP

18. Survey: Altered Images
the 2001 state of corporate responsibility in India poll
Most important factor in forming opinion of a company
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Environmental Management Centre LLP

19. Illustrating the move from Risk to Opportunity
Scenario: Water intensive industry; Quality, Quantity and Reliability of
continuous and adequate water a major problem.
Alleviating….
Reduction of water consumption in process; recycle and reuse
Supply Risk through..
of water in the process.
Labor Induced Training workers in good housekeeping practices of
Risk through.. water conservation.
Water saving devices; water efficient technologies,
Technology Risk through... chemical audit to replace objectionable substancees.
Market risk alleviated by (a) above approach.
(b) Decision to move towards a new range of products consuming
less water and meeting eco-labels
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Environmental Management Centre LLP

20. Going Beyond Compliance takes to
Smart Sustainability
Giving Advantage to ALL
Environmental Performance
Business development
and beyond – to social frontiers
Supporting
Corporate
Objectives
compliance
Economic Performance
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Environmental Management Centre LLP

21. PROCTOR & GAMBLE
“Sustainable development is not only becoming an
important public policy issue, it is becoming a
significant business opportunity.”
George D. Carpenter
Director
Corporate Sustainable Development

22. Sir Mark Moody-Stuart, Shell
 Make SD “come alive in
hearts and minds”
 Integration: 96,000
people, 51 languages,
135+ countries
 Global Sullivan
Principles, Global
Compact
 SDMF, business case
 Renewables, fuel cells

23. Living
With the
Brand
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Environmental Management Centre LLP

24. The Big Squeeze is On
Key Learning: Compliance is not limited to National Laws and Regulations
En
viro
nm et Eco-labels
Water ent
al Mark
Climate Investor outlook
Resources Supply-chains
Biodiversity and traceability
Social Legal
Responsibility Trade Agreements
Transparency Harmonization
Accountability Tec Reporting
ues chn
al olo
V gy
Corporate Values Materials
Leader’s Values Processes
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Societal Values Health &Safety 24
Environmental Management Centre LLPClean energy

25. Creating the Change
Integrating environment into business practices
Resource efficiency being the route rather than
only environmental compliance
Integrating social accountability into business
Looking at the Triple Bottom Line -
Environment, Economics and Social
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Environmental Management Centre LLP

26. Thank you
Reach me at prasad.modak@emcentre.com