Business sustainabiltiy 33,52,68

Presented By:-Mohit Goyal(33)Rohini (52)Varun Mittal(68)

SUSTAINABLE BUSINESS PRACTICES

Sustainable Business Practices 2

AGENDA

• Climate Change• Implications on businesses• What is Sustainability?• Triple Bottom line• Sustainable Business Practices/Solutions• Technology Based Solutions• Management Based Solutions• Market Based Solutions• Communication Aspects• Benefits of such practices• Solutions employed in firms


Climate Change

Climate change is a long-term change in the statistical distribution of weather patterns over periods of time that range from decades to millions of years.

It may be a change in the average weather conditions or a change in the distribution of weather events with respect to an average, for example, greater or fewer extreme weather events.

Anthropogenic Factors: These are human activities which affect the climate.

The scientific consensus on climate change is, "that climate is changing and that these changes are in large part caused by human activities."


Implications on business• Implications on companies by Regulatory authorities

on their environmental impacts. In some countries, companies have come strictly under compliance.

• Strategic angles for new businesses and running businesses coming out of policy framework.

• A new customer has emerged• A new front for competition

“Many companies are agnostic about the science of climate change. They engage the climate-change issue as a way to protect their strategic investments and to search for business opportunities in a changing market landscape”


SUSTAINABILITY

“Sustainability refers to development that meets the needs of the present without compromising the ability of future generations to meet their own needs”


Evolution of the concept of Sustainability

• 1962: Rachel Carson publishes “Silent Spring” widely credited with helping launch the environmental movement

• 1970: First Earth Day celebration – April 22nd• 1972: First UN conference on the Human

Environment in Stockholm, Sweden• 1983 – UN establishes World Commission

on Environment and Development Purpose: examine world’s critical

environment and development problems and formulate solutions


• 1987: Brundtland Commission Report– 3 components of Sustainable

Development:Environmental protection, Economic growth,and Social equity

– Sustainable Development defined:• “Development that meets the needs of the

present without compromising the ability of future generations to meet their own needs.”

• 1992: Rio Earth Summit: Over 178 governments adopted

Agenda :a global blueprint and plan of action for sustainable development in the 21st century


• The Rio Declaration on Environment and Development

27 principles that express the rights and responsibilities of nations as they pursue human development and well-being• The Forest PrinciplesA guide for the management,

conservation, and sustainable development of all types of forests

• 2002: Third UN conference on Environment and Development, Johannesburg, South Africa


Triple Bottom Line


Profit

• Differs from traditional accounting definitions of profit.

• In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the real economic impact the organization has on its economic environment.


People

• Pertains to fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business.

• A TBL company conceives a reciprocal social structure in which the well-being of corporate, labour and other stakeholder interests are interdependent


Planet

• Pertains to adopting environmentally sustainable business practices

• Reducing ecological footprint


Sustainability model


Sustainable Business Practices

Business practices provide products/services of value for a growing world population without diminishing resources or degrading the environment.

Practices can be: Technology Based Management Based Market Based


Technology Based

Based on scientific innovation of new products, systems, technology which focus on the environmental aspects of their implementation without compromising on the quality aspects.

For example: Energy efficient Electronic products-

Compact fluorescent lamp (CFL) Energy Management Systems (Software)


Management Practices1. Operations Management: Based on optimization in

various processes of product development or service. Supply Chain improvisations Assessment of Product Life cycle 2. HR Management: Technological and economic activity may be direct causes of climate change, but it is the

culture and structure of an organization that guides the

development of solutions. Reward systems, training programs, management

philosophy, employee involvement, reporting requirements, data collection, and analysis.

3. Financial Management: Accounting & Audit, Investment


Market Based Solutions

• CDM• JI


Communication Aspects

• Branding• Sustainability Reporting- GRI


Benefits1. Operational improvement: Expose

opportunities for process optimization (such as lower energy costs, reduced material utilization rates, minimized emissions, and decreased costs of transportation)

2. Accessing new sources of revenue generation:

Dividends come from government subsidies GHG trading ROI from clean generation projects


Benefits3. Improving risk management: Physical (the results of

droughts, floods and hurricanes )and financial (the effects of GHG liabilities on share price and asset valuation).

4. Elevating corporate reputation: Among Voters who influence future policy Jurors who sit in judgment on legal cases Investors who consider environmental investment

strategies Communities that influence corporate expansion and

new construction Reporters who write about a company’s initiatives Activists who protest a company’s operations Employees who produce goods and services Consumers who purchase those goods and services.


Benefits

5. Provides business development opportunities:


Benefits6. Organizational Benefits:

Improve a company’s morale and consequently increase the retention rates of its skilled workers. Lower recruiting and training costs notwithstanding A strong company morale contributes significantly to the

attraction and retention of a high calibre workforce. Such organizational benefits may be difficult to quantify, but they are

real.


Solutions employed in various firms(Based on research)


Hewlett Packard

A. Climate and Energy Strategy: Applying IT to transform energy-intensive and carbon-heavy processes to become more:

Transparent, Efficient & TransformationalB. Sustainable design• Eco-labels: ENERGY STAR®• Design for recyclabilityC. Supply Chain ResponsibilityFocusing on:• Integrating social and environmental requirements into its

operations• Helping suppliers build their SER( Supply Chain Social and

Environmental Responsibility) competencies• Collaborating with (NGOs), governments and industry

peers to inform, validate and improve its efforts• Reporting fully and transparently the aggregated results of

supplier audits, remediation efforts and training.


Hewlett Packard

D. Product reuse and recycling: Launched a buyback program in January 2009

E. HP operations: Its environment, health and safety (EHS) management system ensures that it complies with regulations and meet company standards across all HP facilities.


Bank of America Corporation(Diversified Financial Services)

A. Financial Services: • Provides financing for a wide range of

construction projects and facility improvements that enhance the energy efficiency

• Carbon Market Services: Operates an active carbon market services business that provides risk management, market access and liquidity, and structured finance


Bank of America Corporation

• B. Investment: Increased its focus on investing in and financing the development and use of cleaner renewable energies.


Bank of America Corporation(Diversified Financial Services)

C. Helping Consumers Reduce Their Carbon Footprint:

• Offers customers a range of options for “e-delivery.”

• Brighter Planet™ Affinity Banking offers credit and debit cards that help customers finance community-based renewable energy projects.

• Bank of America currently offers two green mortgages to customers.


Bank of America Corporation

E. Reducing its own Environmental Footprint: 1) Operations: • Have invested in energy conservation measures, such

as energy-efficient lighting and HVAC systems, for facilities.

• Focus on energy efficiency includes a commitment to build all new banking centres to meet LEED® standards.

2) Its Associates: Encourages associates to reduce their own carbon emissions through a series of interactive in person educational workshops, grassroots activities, a dedicated website and a carbon calculator.

3) Its Supply Chain: Encourages its suppliers to increase their focus on climate change and resource efficiency.


United Parcel Service(Transportation Industry)

1. Innovative Fleets & Facilitiesa. Ground Fleet• Careful Route Planning Yields

Environmental Benefits• Fleet Maintenance Minimizes

Environmental Impactb. Air Fleet2. Green Facilities- Office and Operational

facilities3. Alternative Fuels Usage


United Parcel Service(Transportation Industry)

4. Recycling & Conservationa. Lighting: Funded lighting upgrade projectsb. Solid Waste, E-Waste and Battery Recycling• Office paper, cardboard, and plastic material

separation and recycling programs have been in place at facilities.

• Recycling batteries which included nickel cadmium, nickel metal hydride, lithium iron, and small-sealed lead acid.

• Implemented own e-waste recycling program to ensure that electronic equipment used by the company is refurbished or disposed of properly when it becomes outdated.


United Parcel Services

c. Responsible Packaging• Introduced the industry's first Reusable Next Day Air

envelope, Express Envelope• Encourage consumers to bring in foam packing to be

reused and recycled.d. Water Conservation• Vehicle Washing Policy: Wash as needed to maintain

appearance.• Water reclamation systems: Wash tunnels equipped

with active systems to reclaim water for reuse.• Vehicle Wash Agent (VWA): Use environmentally

friendly enzyme wash agent


Coca-Cola(Manufacturing)1. Advancing Energy Efficiency and Climate Protection• Track and manage carbon emissions• Investing in renewable energy resources.• Addressing its energy footprint. Improving its

energy efficiency per litre of product produced and working to stabilize its emissions system wide.

2. Operations- Focusing to reduce emissions in three key areas: manufacturing, fleet/transportation and sales equipment (coolers and vending machines).

• Using hybrid electric trucks.• Investing in Fuel Cell Technology.


Coca-Cola (Manufacturing)

3. Creating Sustainable Packaging- Packaging goals focus on three priority areas for effectively preventing waste: optimizing packaging efficiency; increasing its use of renewable and recycled materials; and eliminating waste to landfills through recycling.

4. Improving Water Use and Efficiency- focus is on three areas: improve water efficiency; recycle the water used in operations (wastewater treatment); and replenish through community water access and watershed restoration and protection.


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