Presentation 1- 2013.pdf

8/9/2019 Presentation 1- 2013.pdf

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Om,MayGodProtectusBoth(theTeacherandtheStudent),

MayGodNourishusBoth,

MayweWorkTogetherwithEnergyandVigour,

MayourStudybeEnlightening,notgivingrisetoHostility,

Om,Peace,

Peace,

Peace.


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IntroductiontoSustainableDevelopment&

CorporateSustainabilityTataL.RaghuRam,XLRI


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Aparadoxisalogicalstatementorgroupofstatementsthatleadtoacontradiction

orasituationwhich(iftrue)defieslogicorreason

Wikipedia

Paradox


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Our vision is to be the globalsteel industry benchmark for

value creation and corporatecitizenship

-TATA STEEL


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We work to create a better future every day

We will inspire people to take small everyday actions

that can add up to a big difference for the world.

We wil l develop new ways of doing business with theaim of doubling the size of our company while

reducing our environmental impact - HUL


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To enhance the wealth generating

capability of the enterprise in a

globalizing environment, delivering

superior and sustainable stakeholdervalue - ITC


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To emerge from the position of domestic leader

to leading global player in the energy sector by

adopting best practices from mine to marketwith due care to environmental and social

sustenance CIL


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XLRIsVision

Apassionforacademicexcellence

Uncompromising

human

values Asensitivesocialconscience

Anabidingcommitmenttoimprovingthequalityofthelifeinorganizations

andsociety

Integrity

XLRIJamshedpurwasthefirstIndianBSchooltoendorseUNGCsPRiME

FatherAruppe CentreforEcology&Sustainability(FACES)

CentreforRuralDevelopment

Socialentrepreneurshipfund

XLRIis

committed

to

achieve

carbon

neutral

status

in

five

years

with

a

capitalcommitmentofRs.75lakhs.


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SustainableDevelopmentAContext&Direction


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SustainableDevelopment

Developmentthatmeetstheneedsof

thepresentgenerationwithout

compromisingthe

ability

of

future

generationstomeettheirownneeds


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SD concerns create Business risks as well as opportunities

1. Managers should be able to take advantage of the

business opportunities inherent in societys

demands for SD.

2. Should be able to turn risk into opportunity


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Anorganismssurvivaldependsontwocriticalfunctionsfrom

itsenvironment:

provision

of

resources

and

absorption

of

wastes.

Organism

Source Sink

Provideresources:

Water Cleanair

Nutrients

Absorbwastes

andby

products

Thesameprincipleappliesatlargerscales,e.g.,toacompany,industry,or

economy.

Environment


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Hownature

works?

No

Waste

Natureworksincycles

Thereisnowastewhatis

unusedbyonespecies

becomesnutrientsforthe

next

Thesunsenergydrivesthe

process:

Greencelledplantsusingphotosynthesiscreate

netconcentrationand

structure


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Industrial systems function primarily in a linear fashion

Take Make Waste

Only 6% of

material flow

ends up inproducts

Source: Hawken, Lovins, Natural Capitalism

Take natural capital,

valuable material, and

process it into unusablewaste


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Thisindustrialsystem,operatingonaneverlargerscale,is

embeddedinandaffectingnaturescycle.


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Expanding industrial systems affect

both sources and sinks

Sources

Key resource bases

are being exploited at

rates faster than their

ability to regenerate.

Sinks

The available land

area where nature

can break down and

recycle wastes is

shrinking.

The quantity and

types of wastes

created by industrial

societies cannot befully absorbed and

recycled by nature.

Economy

Environment


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Socio-Economic Context

2nd fastestgrowingeconomy

11th largestnominalGDP(4th

largestin

terms

of

PPP)

PercapitaincomeofRs.38,000,growingat14.4%annually

2nd largesttechnicallyqualifiedmanpower

Robustindustrialinfrastructure

Indigenousspaceprogram,

supercomputer

5th inlistofnumberofmillionnaires

Etc.

134/182onHumanDevelopmentIndex

65/

84

on

Global

Hunger

Index 42%ofWorldsmalnourishedchildren

77%populationwithdailyincomeof


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Millionsofpeopleworldwidearestrugglingtomeettheirbasicneeds.

1.3billionpeopleliveinabsolute

poverty,with

incomes

less

than

$1/day(WorldBank)

841millionpeopleindeveloping

countriessufferfrombasic

proteinenergymalnutrition(UN

FoodandAgricultureOrganization)

Nearly1billionpeopleeither

cannotworkorareemployedin

jobs

where

they

cannot

support

theirfamily(InternationalLabor

Organization)

11.7%

2.3%

1.9%

1.4%

RichestFifth

PoorestFifth

(UNDP, Human Development Report)

82.7%

Distribution of Total World Income

Global Trends


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Somedefinitions

Corporate sustainability is a business approach that creates longterm

shareholder value by embracing opportunities and managing risks deriving

from economic, environmental and social developments.

DowJones

Sustainability

Index

A sustainable business is one that delivers value for investors, customers,

and employees; improves the living standards of its employees and the

communities it touches; makes wise use of natural resources; and treats

people fairly. CramerandKarabell in"SustainableExcellence

Developmentthatintegratessocioenvironmentaland

equitablebenefitsharingconcernsintodecisionmakingwhile

contributing

to

inter

and

intra

generational

human

well

being RaghuRam


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Howeasy

is

it?


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MiltonFriedmans

argument

TheNobel

Prize

winning

economist

Milton

Friedmanargues:

Fewtrendscouldsothoroughlyundermine

thevery

foundations

of

our

free

society

as

the

acceptancebycorporateofficialsofasocial

responsibility

other

than

to

make

as

much

moneyfortheirstockholdersaspossible


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CreatingSharedvalue

MichaelE.

Porter

and

Mark

R.

Kramer

Societalneeds,notjustconventionaleconomicneeds,

definemarkets,andsocialharmscancreateinternalcosts

forfirms.

Companiescancreateeconomicvaluebycreatingsocietal

value.

byreconceiving

products

and

markets

redefiningproductivityinthevaluechain

buildingsupportiveindustryclustersatthecompanyslocations


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Companies evolved in how they manage SD issues

Environmental

Compliance

Risk Management

Sustainable

Development

End-of-pipe

Limit impact of current

activities

Pollution prevention;

Management systems

Redesign to eliminate impacts

of activities

Strategic integration

Change activities and design

of industrial system

Friedman

Freeman

Porter&Kramer


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Why do we degrade Environment?

Environmental resources are CPR

No well defined property rights

Belongs to all while using, to no-one whilepaying

Leads to The tragedy of Commons

Results in Externalit ies Impact on environment is external to the

profit & loss calculations of the economic

agent - eg. Car users (-ve), plantations (+ve)


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Stakeholderspolluters, affected, controllers etc..

Sustainable Development

Environmental resources are to beshared across generations

Possible that future generations may

prefer natural capital over man madecapital


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Thechallengeofsustainabledevelopmentarisesfromtwo

majorconverging

trends

Declineinresourceavailability&ecosystemservices

Impact=Population(P)xConsumption/capita(A)xImpact/unitofconsumption@Technology(T)

I=PxAxT

Diminishing

marginfor

action

Sustainability


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1962 - Rachel Carson publishes "Silent Spring".

This book brought together research on toxicology, ecology and epidemology to suggestthat agricultural pesticides were building to catastrophic levels.

This was linked to damage to animal species and to human health. It shattered the assumption that the environment had an infinite capacity to absorbpollutants.

1968 - The Club of Rome, is established by 36 European economists and scientists. Its goal is to

pursue a holistic understanding of the 'world problematique'. It commissions a study on global

proportions to model and analyse the dynamic interactions between industrial production, population,environmental damage, food consumption and natural resource usage.

1969 - Friends of the Earth forms as a non-profit organization dedicated to protecting the planet from

environmental degradation; preserving biological, cultural, and ethnic diversity; and empowering

citizens to have an influential voice in decisions affecting the quality of their environment -- and theirlives.

1971 - Greenpeace starts up in Canada and launches an aggressive agenda to stop environmental

damage through civil protests and non-violent interference.

History of Sustainable Development


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1974 Rowland and Molina release seminal work on CFCs in Nature magazine.

They calculated that if human use of CFC gases was to continue at an unaltered rate theozone layer would be depleted by many percent after some decades.

1983 World Commission on Environment and Development forms. The commission works for 3years to weave together a report on social, economic, cultural, and environmental issues.

1984 WorldwatchInstitute publishes its first State of the World Report.

The report monitors changes in the global resource base, focusing particularly on how

changes there affect the economy. It concludes that "we are living beyond our means, largely by borrowing against the future."

1985 Antarct ic ozone hole discovered by Bri tish and American scientists.

1987 World Commission on Environment and Development publish - Our Common

Future (The Bruntland Report) in response to the request from the UN generalassembly to propose long-term environmental strategies for achieving sustainabledevelopment by the year 2000.



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1987 Montreal Protocol focused on the depletion of the stratospheric ozone layer andeliminating substances that cause this (HCFCs).

Has since been strengthened twice - London and Copenhagen.

Production of CFCs in North stopped by 1996, countries in the South (China and India)to end production by 2006.

1988 Inter-Governmental panel on Climate Change

Resulted in the framework convention on climate change signed by 153 countries + the

then EU, dealing with the threat of global warming Thought lacked firm agreements on targets, did aim to stabilise 1990 levels of CO2 andother greenhouse gases

1992 Meadows, D. B., Meadows, D. L. and Randers, J., Beyond the Limits, London:Earthscan.

Using a computer model to map patterns of growth, the report concluded thatenvironmental collapse was inevitable.

'If the present growth trends on world population, industrialisation, pollution, foodproduction and resource depletion remain unchanged, the limits to growth on this planetwill be reached some time within the next 100 years'.



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1992 United Nations Conference on Environment and Development (UNCED) held in Rio deJaneiro, Brazil The Earth Summit. 179 countries participated in this conference workingtowards reconciling the impact of human socio-economic activities on the environment.

Outcomes: Convention on biological diversity

Framework convention on climatic change

Principles of forest management

Agenda 21

The Rio declaration on environment and development

1997 Kyoto ProtocolWorlds Governments met in Japan to negotiate a treaty to startdealing seriously with climate change to reduce emissions of serious greenhouse gases

CO2, CH4, NO, + 3 types of fluorinated gases.

1994 Law of the Seanational sovereignty of off-shore waters and the nationalresponsibility for the ecosystems within these waters (re. dumping waste, & fish stocksetc.)



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1997 - Earth Summit+5 - A five year review of Earth Summit progress wasmade by the United Nations General Assembly.

The final document adopted by delegates from over 165 countries --

while taking small steps forward on a number of issues, includingpreventing climate change, forest loss and freshwater scarcity -disappointed many in that it contained few new concrete commitmentson action needed.

2001Climate Summit, Bonn 178 countries developed a framework of how toimplement the 1997 Kyoto Protocol

2002 - Earth Summit 2002, Johannesburg, South Africa. Rio+10 - World Summit onSustainable Development -people, planet, prosperity,


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