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Global trends
Sustainability in India Barriers and Solutions How The Green Mantra contributes ?
Feb 2013 TGM
adopting business strategies that meet the needs of the enterprise and its stakeholders today while sustaining the resources, both human and natural, that will be needed in the future. Sustainability defined by The UNGCs Ten Principles encompasses human rights, labour, the environment and anti-corruption
Sustainability interfaces with economics through the social and ecological consequences of economic activity. Daly & Cobb
Global trends
According to surveys done by KPMG, Accenture, PWC and Deloitte in 2010 more than 70% of the corporations that took part in the surveys think sustainability is crucial to
Building image and brand (specially after the financial crisis) Consumer driven and necessary innovation, creating new business sectors, markets, products and technology Competitive, strategic advantage and real bottom line results Feb 2013 TGM
In India
Currently popular as CSR- e.g. The TATA group, Aditya Birla Group, Azim Premji Foundation, Shiv Nadar to name a few. PSUs have the requisite CSR fund kept aside (but have not utilized it effectively) Government support through JNNSM, subsidies, tax incentives, RPOs, RECs, State specific fixed tariffs e.g. 0 -2% wheeling charges, interstate and intra state Open Access to name a few Pertinent Questions are: Are we ready to integrate sustainability into daily practice? embedded sustainability Are we ready to shift the focus from pure profit to non financial metrics to create new ways to measure and communicate progress made with sustainability initiatives
Feb 2013 TGM
Examples
Go organic- food, cosmetics and clothing retail laying emphasis on organic sources e.g. Natura Cosmeticos in Brazil or India we have Biotique or Lotus or Kama Ayurveda or Forest Essentials Fair trade White goods that use less energy Renewable energy technology Energy efficient technology for industries E cars REC schemes Reducing Carbon Footprints
Feb 2013 TGM
Barriers
Investor uncertainty Lack of credible information to quantify and analyze results and impacts of sustainable initiatives on the bottom line. Difficult to measure Low clarity on International and national framework Difficult and expensive to execute or implement across supply chains and subsidiaries Difficult to make initiatives with long term benefits compete with ones that have quicker and shorter payback Consumer uncertainty- customers, businesses and governments
Feb 2013 TGM
Way Forward
International stakeholders and bodies and government initiating regulatory framework e.g. RPOs, JNNSM, tax incentives, subsidies Sharing experience, knowledge and skills, best practices and emerging ideas to bridge the lack of information gap Education and awareness to increase consumer demand for sustainable goods and to create leaders who advocate sustainability Partnerships, collaborations and joint efforts Research to create better technology, newer products or services and drive down costs Priorities Understanding consumer and customer demand Like PepsiCo CEO Indra Nooyi says: Full Business