First session 1

• Planetary Boundaries of Business: Nine boundaries

• Four entering danger zone: Climate change, Land use change, Change
to biogeochemical flows- N and P, Loss of biosphere integrity

• Timeline of Sustainability

• Climate Change: Paris Climate Treaty,

 1
2nd Great WB & Limits to IPCC Basel
Industrial Depression IMF Growth; Convention
Revolution UNCHE

1914 1918 1944 1972 1988

1800 1850 1900 1929 1939 1945 1968 1987 1989

1st Industrial World World War II Club of Brundtland

Revolution War I Rome Commission;
Montreal
Protocol
 1
CSD Millennium Development
Goals (MDGs)

1992 1993 1997 2000 2002 2013 2015 2030 2050 2100

UNCED/Rio Kyoto Rio+ CSR SDGs launched; Paris Climate Treaty

Summit; Protocol 20 Act
UNFCCC
 Second Session 2

• Herman Miller: PVC or TPU

• LCA: Cradle to Cradle, Cradle to Grave, Cradle to Gate, Gate to Gate

• LCA: Impact on energy, raw material, and emissions at different stages of lifecycle

• LCA ensures businesses identify the multiple environmental and resource issues
across the entire lifecycle of a product or service

• LCA helps in better planning, procuring, design, marketing and sales, and
reducing costs.
 ENERGY

LCA
RAW
EMISSIONS
MATERIAL
 LCA
Generally, a LCA consists of four main activities:

1. Goal definition

2. Inventory Analysis

3. Impact Assessment

4. Improvement Assessment/Interpretation
Example: LCA OF A Coffee Machine
coffee paper poly- aluminium sheet steel glas
bean styrene

roasting filter pro- injection extrusion stamping forming

duction moulding forming

assembly
+ transport

packaging
electricity

use
water

disposal of disposal in
filters + coffee municipal
in org. waste waste
 7.3 kg 1 kg 0.1 kg 0.3 kg 0.4 kg
coffee paper poly- aluminium sheet steel glas
bean styrene

roasting filter pro- injection extrusion stamping forming

duction moulding forming

assembly
+ transport

packaging 375 kWh

electricity

use
water

disposal of disposal in White boxes are not

filters + coffee municipal included in
in org. waste waste assessment/inventory
• The impact assessment focuses on characterizing the type and
severity of environmental impact more specifically.
Material/impact Environmental effect
depletion of biotic resources
copper
depletion of abiotic resources
CO2
CFC greenhouse effect
SO2 Weighting of effect?
NOx
ozone layer depletion
phosphorous acidification
volatile organic
compounds (VOCs) eutrophication
heavy metals
(summer) smog
PCB
pesticides human toxicity
styrene
eco-toxicity

odour
(example)
• The final step in Life-Cycle Analysis is to identify areas for
improvement.

• Consult the original goal definition for the purpose of the analysis
and the target group.

• Life-cycle areas/processes/events with large impacts (i.e., high

numerical values) are clearly the most obvious candidates

• However, what are the resources required and risk involved?

– Good areas of improvement are those where large improvements can be made with minimal
(corporate) resource expenditure and low risk.
 Pesticides

Finishing chemicals
 Third Session 3

• Ambatovy: Ecological Footprint

• Amount of Earth’s resources required to maintain one’s consumption patterns

and disposal requirements

• Types of Emissions Scope 1, Scope 2, Scope 3 emissions

• Ecosystem Services & Valuations

 Ecological Footprint

• Amount of land and water required to maintain one’s consumption patterns

and disposal requirements

• An approximation that provides a graphic way of understanding the impact of

human consumption needs on the earth's resources

• An accounting tool to estimate the resource consumption and waste

assimilation requirements of a defined human population or economy in
terms of a corresponding productive land area
 Types of Emissions
Scope 1: direct emissions from sources owned or controlled by the
entity within premises of the entity

Scope 2: indirect emissions on account of generation and purchase of

electricity, steam, heating and cooling for use within entity premises
(for business operations of entity)

Scope 3: indirect emissions from sources not owned by the entity but
connected with the business operations of the entity

These emissions are calculated either at corporate level or product

level
 Footprint for business
• Investors, credit rating agencies and country risk analysts identify, quantify and
integrate environmental risks in their decision-making

– scarcity and/or price volatility of non-renewable resources

– long-term loss of income due to the overuse and degradation of bio-

productive assets

– loss of crop productivity due to climate change

– dependence on fossil fuels and use of carbon-intensive technologies

 Total Economic Value

Use values Non-use values

Option Philantropic Altruism to

Actual value
value value biodi versity

Direct Indirect Bequest Altruist Existence

use use value value value

Non
Consumptive
consumptive

Crops, Recreation, Pest control, Satisfaction of Satisfaction of

livestock, spriritua/cultural pollination, water Future use of Satisfaction of knowing that
knowing that knowing
fisheries, wild well-being, regulation and known and a species or
future generations thatother
foods, reserach purification, soil unknown ecosystem
will have acces to people have
aquaculture education fertility benefits exists
nature’s benefits acces to
nature’s
benefits
Production function, Cost Replacement cost
Figure 3: Hedonic
Method, ValuePricing,
types within the TEV approach
method, Avoided Contingent Valuation, Group Valuation,
Contingent Valuation cost method
Figure 3 reviews the value JointinAnalysis
types that are addressed the literature on nature
 Fourth Session 4

• TetraPak: Circular Economy

• Waste management strategies: plastic waste, e-waste etc.

• Underlying dynamics different in different types of waste

– Technology, markets, consumer behaviour, policies etc.

• Partnerships: context, role, key factors: lack of trust:: establishing trust; data
falsification; competing and conflicting objectives
 High
LATENTS DOMINANTS

- Keep satisfied - Closely manage

Interest/Power
Framework
Stakeholder
Power
MARGINALS OBSERVERS

- Monitor - Keep informed

Low
Low Stakeholder Interest High
 High

[Supportive] [Mixed blessing]

- Involve/Exploit - Collaborate
Stakeholder’s
Potential for Potential for
Cooperation Threat/Cooperation
with Framework
Organization

[Marginal] [Non-supportive]
- Hold & Monitor - Defend
Low
Low Stakeholder’s potential for threat to Organization High
 Fifth Session 5

• Group Activity- Apples & Oranges (B2C) and Khisco Systems (B2B)

• Stakeholder Management: Interest/Power Framework, Potential to

Threat/Cooperation Framework

• Extended Producer Responsibility (EPR): Deposit Refund Systems (DRS), Advance

Recovery Fee (ARF)

• Current and emerging business models and opportunities: e.g. PROs

 Implementing EPR

• Why EPR?

• Product take-back
– How?
– When?
– Where?

• Business Landscape
– Competitive dynamics
– Collaboration with competitors, formal and informal waste management sector,
NGOs
– Innovative approaches
– Impact on organizational strategy
 Key Points
• Institutional issues in developing and emerging economies
– Issues in regulations and infrastructure
– Differences in nature of markets
– Large presence of informal sector, particularly in waste management

• Environmental responsibility in TetraPak’s DNA

• Thought leadership

• Progressive partnerships
 Key Points
• TetraPak’s partnerships with different stakeholders
– Value chain: working with Saahas and SMS
– Legitimacy: working with TERI
– Leveraging existing networks in informal sector: working with Saahas
– Creating awareness and sensitization

• Expectations from TetraPak for such partnerships

– Clear communication and reinforcement of mutually acceptable goals
– Holding the partners accountable for their actions
– Working hand in hand to overcome implementation obstacles
– Financially supporting the NGOs/partners in meeting environmental/social goals
 Key Points

• Issues in partnership
– Formal sector-formal sector partnerships
– Formal sector-informal sector partnerships
– Trust- Building it and maintaining it
– Transparency and data falsification
– Adherence to rules, regulations, and norms
 Sixth Session 6

• Unilever case: Green marketing

• Changing and evolving consumer expectations, purchasing intentions, and

purchasing behaviour: increased demand for ‘green’ and sustainable products
and services (e.g. Organic food, H&M, Electric vehicles)

• Green washing: Green spinning, Green selling, Green harvesting, Compliance

marketing

• Reduced Consumption or Responsible Consumption

 Seventh Session 7
• Marks & Spencer- Sir Stuart Rose: Plan A: Five pillars

• Ecolabels
– Signal to consumer about environmental/sustainability attributes of product

• Types of ecolabels: self certified, government backed, third party

• Business Strategy for ecolabels: to go or not to go for it, when to go for it, which
to go for

• Concerns: confusion, consumer skepticism, perception of green washing

 Why ecolabels?
• Increased consumer awareness on environment and sustainability

• Increased push from government, civil society and regulators

• Reduce information asymmetry between producers of “green” products

and consumers

• Foster informed purchasing decisions and reduce information search cost

for consumers

• Important strategic consideration for firms

 Why should a firm go/not go for ecolabels?
• Cost of getting ecolabels

• Understanding the context and the target segment

• Type of ecolabels: wide acceptability, easy recognition

• Potential benefits: customer loyalty, customer retention,

product/brand differentiation etc.

• Strategy: long term goals, signaling, vision of company

 Any negatives of ecolabels?
• Information overload

• Consumer confusion and skepticism

• A mere marketing gimmick: Perception of green washing?

 Eighth Session 8

• Sustainability drivers: Policies

• Role of business in society

• CSR: Evolution, Multiple Lens, Drivers, Barriers, Models in India

• Two dominant CSR conceptualizations and CSR learning model

– Carroll’s conceptualization: socially required, socially expected, socially desired
– Lantos’s conceptualization: ethical, altruistic, strategic
– Zadek’s learning model: Denial, Compliance, Managerial, Strategic, Civil

• Companies Act 2013: Mandatory CSR

 CSR: two dominant conceptualizations
• Archie Carroll’s conceptualization Discretionary
(1979):
– economic, legal, ethical, discretionary
Ethical

• Archie Carroll’s revised

conceptualization (1991): Legal
– Socially required: economic, legal
– Socially expected: ethical
Economic
– Socially desired: discretionary
 CSR: two dominant conceptualizations
• Lantos’ conceptualization (2001):
– Ethical: mandatory fulfilment of firm’s economic, legal, and ethical responsibilities

– Altruistic: fulfilment of firm’s philanthropic responsibilities

– Strategic: fulfilment of firm’s philanthropic responsibilities that will also benefit

bottom-line
 CSR: Organizational learning
• Zadek’s organizational learning model (2004): 5 stages through which
businesses typically go through CSR implementations
– Denial: refuse to accept social & environmental impact of their businesses

– Compliance: focus on complying with legal rules

– Managerial: beginning of understanding of CSR/CER beyond legal requirements in a number

of managerial processes

– Strategic: strategic manner of looking at CSR: competitive edge

– Civil: genuine concern about issues; look at ways to support their CSR objectives
 Some drivers of CSR
Concern for social improvement
Ethics and values
Belief in stewardship philosophy
Corporate relations
Stakeholder relations
Responsiveness to local communities
Legal compliance
 Some barriers of CSR
Competitive business practices
Poor ethical decision making
Corruption in government and/or excessive bureaucracy
Confused policy and/or lax regulations
Lack of executive commitment and unprofessional management
Lack of organizational resources
Lack of management support at top and middle levels
Inadequate evaluation of CSR initiatives
 Companies Act 2013
Chapter 9: Accounts of companies
Section 135: Corporate Social Responsibility
5 points under Section 135
“Every company having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five
crore or more during any financial year shall constitute a Corporate Social
Responsibility Committee of the Board consisting of three or more directors, out
of which at least one director shall be an independent director.”

In effect from 1st April 2014

 Companies Act 2013
Responsibilities laid down under Section 135 of Chapter 9
The Board’s report (Annual Report) shall disclose the composition of the CSR Committee
The CSR Committee shall:
formulate and recommend to the Board, a CSR Policy (activities to be undertaken)
recommend the amount of expenditure to be incurred on CSR activities
monitor the CSR policy from time to time
The Board shall disclose CSR policy in its report and place on company’s website
The Board shall ensure the activities included in CSR Policy are undertaken by the company
The Board shall ensures that the company spends, in every FY, at least 2% of the average net profits
of the company made during the three immediate preceding FY
preference to be given to local areas and areas around which the company operates
specify the reasons if company fails to spend the amount
 Who does CSR apply to

Applicable to all companies incorporated in India and

having either of the following in any financial year:

• Net worth of Rs. 500 crore or more; OR

• Turnover of Rs. 1000 crore or more; OR

• Net profit of Rs. 5 crore or more

 Eligible CSR activities
1. Eradicating hunger, poverty and malnutrition; promoting health care
including preventive health care and sanitation including contribution to
the ‘Swachh Bharat Kosh’ set-up by the Central Government for the
promotion of sanitation and making available safe drinking water;
2. Promoting education, including special education and employment
enhancing vocational skills especially among children, women, elderly,
and the differently abled and livelihood enhancement projects;
3. Promoting gender equality and empowering women, setting up homes
and hostels for women and orphans; setting up old age homes, day care
centers and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward
groups;
 Eligible CSR activities
4. Ensuring environmental sustainability, ecological balance, protection of
flora and fauna, animal welfare, agro forestry, conservation of natural
resources and maintaining quality of soil, air and water including
contribution to the ‘Clean Ganga Fund’ set-up by the Central
Government for rejuvenation of river Ganga;

5. Protection of national heritage, art and culture including restoration of

building and sites of historical importance and works of art; setting up
public libraries; promotion and development of traditional arts and
handicrafts;

6. Measures for the benefit of armed forces veterans, war widows and their
dependents;
 Eligible CSR activities
8. Contribution to the Prime Minister’s National Relief Fund or any other fund set up
by the Central Government for socio-economic development and relief and welfare
of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities
and women;

9. Contributions or funds provided to technology incubators located within academic

institutions which are approved by the Central Government;

10. Rural development projects;

11. Slum area development;

12. Training to promote rural sports, nationally recognized sports, Paralympic sports
and Olympic sports.
 What is not CSR
The CSR projects/programs/activities that benefit only the employees of
the company and their families shall not be considered as CSR
Contribution of any amount directly or indirectly to any political party
Expenses incurred for fulfilment of regulations of any other Act
Activities undertaken by companies in pursuance of its course of normal
business
Projects undertaken outside India
One-off events
 Ninth Session 9

• Sustainability drivers: Markets

– Reporting, disclosure initiatives, standards and ecolabels, benchmarking, auditing, voluntary
mechanisms, multi-stakeholder initiatives, pressure from stakeholders

• Palm Oil: Ecolabels

– Signal to consumer about environmental/sustainability attributes of product

• Several in number and focusing on various sustainability aspects: e.g. RSPO, Fair Trade, Energy
Stars, FSC, RE100, Equator Principles

• Markets: e.g. Triple Bottom Line, Sustainability Reporting (GRI), ISO 14000 standards, DJSI, CDP,
CERES, RE100, etc.
Current Global Reporting Scenario
Global
Reporting
Initiative
(GRI)
ISO 26000 UN Global
series Compact

Global
GLOBAL OECD
Sullivan
EIGHT Guidelines
Principles

International Account
Labour Ability (AA)
Standards 1000
(ILO) Social Assurance
Conventions Accountabil Standard
ity (SA)
8000
 ISO 14000 standards: Why to do?
• Internal Benefits
– Reduce incidents and liability
– Efficiency
– Performance
– Improved corporate culture

• External Benefits
– Third party assurance and recognition
– Market access
– Regulatory relief
– Expression of due diligence
– Public image and community relations
– Financial markets
 Tenth Session 10

• Sustainability drivers: Leadership

• Patagonia: Don’t buy this Jacket

• Leadership: Vision and Mission of a Company, Organizational philosophy, Committed leadership

 Leaders driving sustainability
• Pioneer systems change
• Drive market demand for sustainability
• Build culture of responsibility and sustainability

• Know the issues and engage in science based leadership

• Extend responsibility to ecosystem and lift others up
• Collaborate non-competitively

• Take sustainability personally

• Hold the organization to account and engage investors
• Lead change with authenticity and vulnerability
Sustainability leadership
• Three stages of sustainability strategy
– 1st stage: risk management perspective-------COMPLIANCE
– 2nd stage: integrated stage----------INTEGRATION
– 3rd stage: citizenship stage----------TRANSFORMATION
SUSTAINABILITY
MATURITY
CURVE

• Workforce engagement, Organizational values, HR value chain, Job

enrichment, Goal setting, The role of trust, Full range leadership
 Eleventh Session 11

• Guest Session by Ms. Priya Ranjan, Senior Manager (Sustainability), Tata Steel

• Key topics covered

– Tata Group Code of Conduct; Tata Sustainability Policy: Role of founder’s vision
– Vision  Strategy  Targets
– LCA: in the process of establishing baseline for products & processes
– Scope 1-2-3 emissions
– Waste heat recovery, Zero liquid discharge
– Trying to see idea of sustainability in suppliers
– 1st company in India to publish voluntary GRI Sustainability Report
– Global drivers: SDGs and Paris Climate Treaty (both in 2015)
– Internal pricing of Carbon
– Creating a market for scrap steel in India
Twelfth Session 12
 Thirteenth Session 13

• When does it pay to be green?

– Embedded quality improvement (private good) vis-à-vis environmental protection (public
good)
– Source of competitive advantage: firm’s positioning or capabilities
– Compliance based environmental management or Strategic environmental management
– Generic Competitive Environmental Strategies: Eco Efficiency, Beyond Compliance
Leadership, Eco Branding, Environmental Cost Leadership

• Triple Bottom Line

• IPAT
 Eco Efficiency
ENVIRONMENTAL STRATEGIES
Environmental

Lower Cost
e.g. ISO 14001 Cost Leadership
GENERIC COMPETITIVE
certification;
e.g. TetraPak,
circular

COMPETITIVE
Patagonia

ADVANTAGE
economy

Differentiation
Beyond Eco Branding
Compliance e.g. eco-labels
Leadership (FSC); green
e.g. CERES, EP, marketing;
RE100, GRI H&M, Patagonia

Organizational Products &

Processes Services
COMPETITIVE FOCUS
 Generic competitive environment strategies
• Eco-efficiency: greater potential for firms that supply industrial
markets

• Beyond Compliance Leadership: Firms that supply industrial markets:

benefit for client too

• Eco-branding: Willingness to pay by consumers, Availability of

reliable information about firm’s environmental performance, and
difficult for competitors to imitate the differentiation

• Environmental Cost Leadership: Focus on radical product innovation

such as material substitution and dematerialization; Selling products
to selling services
 Triple Bottom Line (TBL/3BL)
• Coined by John Elkington (founder of a British consultancy
called SustainAbility) in 1994

• People- Planet- Profit: 3Ps

 KAYA of 4 E!

Economy, Energy, Environment, Emission

Kaya’s Identity: IPAT

Impact = Population * Affluence * Technology

CO2 emissions
= Population * (GDP/Population) * (Energy/GDP) * (Emissions/Energy)
= Population * GDP per capita * Energy Intensity of GDP * Emission
Intensity of Energy
 Sustainability 101: Weak Sustainability
• Utilitarian View

• Techno-centric Environment

• Natural and Human Capital:

Substitutable by produced
S
capital [EoS > 1]
Social Economic

Viable
 Sustainability 101: Strong Sustainability

• Welfare driven view

Environment

• Eco-centric
Society

• Natural and Human Capital:

Non-substitutable: Focus is on
Biosphere
– Natural capital needs to be Economy
provided special protection.