Unit 1: Development and Environment:

Major environmental issues:

• Pollution of Air, Water and Land:
⁃ Air Pollution: Emission of any impurity into the air, such as smoke (including tobacco
smoke), dust, cinders, solid particles, gases, mists, fumes, odors, and radioactive
substances.
⁃ Water Pollution: Ground water, surface water, marine.
⁃ Land Pollution: Plastic bag and general waste dump beside communal toilets on
riverbank.
⁃ Major Concerns: peace and security, Cause illness and death, Damage to Habitat and
Ecosystems, Loss of plant and animal life, Loss of natural resources, Economic
consequences, Transboundary impacts-acid rain-haze pollution-water pollution-nuclear
fallout.
⁃ Major Causes of Pollution: Emissions/discharges from industry, transport and energy
production, agricultural run offs, unclean technology, inadequate policies and legal
regimes, non-implementation of ambient quality standards.

• Hazardous Chemicals and Wastes:

⁃ Concerns: illegal dumping, transport and disposal of hazardous wastes, international
trade in hazardous chemicals, persistence and bioaccumulation of certain organic
pollutants, Cause of serious health problems and death, cause of serious damage to water
sources and environment.
⁃ Causes: production, use and disposal of chemicals including pesticides, Generation and
disposal of hazardous wastes, Irresponsible international trade in hazardous chemicals
and wastes, Production, and use of persistent organic pollutants
⁃ National measures: effective implementation of national policies and legislation;
effective management of production, transport, storage and use of chemicals; Effective
disposal of hazardous wastes; phasing out production and use of persistent organic
pollutants (pops); Development of alternative feedstocks and disposal options.
⁃ International action: BASEL convention on the control of transboundary movements of
hazardous wastes and their disposal; Rotterdam convention on the prior informed
consent procedure for certain hazardous chemicals and pesticides in international trade;
Chemicals programs of UNEP and FAO; Stockholm convention on persistent organic
pollutants.

• Land Degradation:
⁃ Concerns: lower soil productivity, forced migration, poverty, drought, disruption of
water cycle, poor water retention, lack of food security.
⁃ Major causes: overcrowding, overgrazing, land conversion, deforestation, soil pollution
through industry and agriculture, erosion.
⁃ National measures: rehabilitation, conservation and sustainable management of land and
water resources; regional cooperation; Land use planning; Implementation of relevant
Legislation; more equitable production and consumption patterns; Local level
participation; Leisure controls and measures.
 ⁃ International action: debt relief, UN desertiVication convention and its protocols, land use
planning, international Vinancing, links to CBD, climate change and ozone regimes.

• Loss of Biodiversity:
⁃ Concerns: loss of species, loss of genetic resources, agricultural vulnerability, habitat
destruction, loss of ecosystems, introduction of disease and invasive species via
smuggling
⁃ Causes: over harvesting, land conversion, deforestation, chemicals and pesticides, illegal
trade, climate change.
⁃ National measures: national planning, protected areas and species, sustainable use of
resources, national ownership of genetic resources, access and beneVit sharing,
implementing laws and regulations.
⁃ International action: regional agreements global environmental facility, convention on
biological diversity, acceptance of idea that biodiversity and human well-being are
inextricably linked.
⁃ Example of endangered species: marine turtle, giant panda.

• Ozone Depletion:
⁃ Concerns: exposure to solar UV rays; effects on - human health (cancer, cataracts,
impaired immune systems); crops; Ecosystems; Biogeochemical cycles; Air quality;
Plastics, wood, cotton.
⁃ Causes: refrigerators, foam blowing, Vire extinction, pest control, solvents, climate
change, volcanoes.
⁃ National measures: phasing out the production and use of ODS, rights of developing
countries for continued production and use and importation, increased use of alternative
technology, implement production and trade control legislation.
⁃ International action: Vienna Convention, multilateral fund, GEF, Montreal protocol.

• Climate Change:
⁃ Sources of greenhouse gases: natural causes, energy production, industry transport, land
use in animal husbandry, domestic sources.
⁃ Impacts on health, agriculture, forest, water resources, coastal areas, subspecies, and
natural areas.
⁃ National Measures: Clean Development Mech, Mitigation Policies and Measures,
adaptation measures, emissions trading, inventory of sources and sinks, implementation
of relevant legislation, cleaner tech, enhance sinks and reduction of sources, carbon
trading, emission caps.
⁃ International Actions: 1992 framework convention on climate change, 1997 Kyoto
Protocol to climate change convention.
⁃ Remedial Measures: Internal cooperation, reduction of emission of GHGs, UNFCCC and
its Kyoto protocol, increase sinks, alternative energy and energy efViciency, scientiVic
research & tech transfer.

• Loss of natural and cultural resources

Unit 3: Emerging Trends in Sustainability Management
GHGS & Climate Change:
• Greenhouse gases (GHGs): family of substances in atmosphere that are capable of trapping
energy in the ecosystem.
• Prevalent: CO2 & Methane (CH4)
• imp for survival as it maintains the temp. for bio. development.
• natural balance destabilized by human activities like burning fossil fuels.

KYOTO Protocol:
1. 1972-Stockholm Conference on Human Dev: 1st attempt to discuss relation btw environment &
dev.
2. Brundtland Report (1987): Diagnosis of the state of environment & deVined "sustainable
development.
3. 1992 - Rio Conference:
4. Agenda 21: countries that contribute 0.7% of their annual gross national proVits (GMP) ofVicial to
development assistance & to provide favorable access to the transfer of environmentally sound
technologies.
5. Kyoto Protocol: internationally binding agreement to reduce emissions & set targets.
⁃ Phase 1 (2005-12): gave the target of cutting down emissions by 5 %
⁃ Phase 2 (2013-20): gave the target of reducing emissions by at least 18 % by industrialized
countries.

Kyoto Protocol Mechanisms:

3 strategies:
1. Joint Implementation (JI): allow industrialized countries to facilitate the implementation of
projects pertaining to reduction of emission levels.
2. Clean Department Mechanism (CDM): implement projects which will reduce the emission level
of developing countries.
3. Emission trading: allows countries to purchase assigned amounts of units of emission from other
country to meet targets.
Shortcomings of Kyoto Protocol:
1. Excludes developing countries.
2. India & China are excluded which constitutes 36 % of world's population.
3. Use of older, outdated & environmentally unfriendly technologies by developing countries which
are excluded from Kyoto Protocol.
4. Growing unchecked developing countries emission.
5. It only raises the awareness & not in real terms.

Carbon Markets:
Carbon market in India also exists under the Energy Conservation (Amendment) 2022. Allows trade
off but does not allow sale of carbon certiVicates. Only tradable certiVicates are RECs & ESCs.
• Tool for pricing carbon emission.
• allows trade of carbon emissions.
• Creates a trading system for buying & selling carbon credits/allowances.
• Carbon credits is a tradable permit equal to 1 tonne of Co2 removed, reduced or sequestered
from environment.
• Carbon allowances or caps are set by govt. based on emission targets.
• Voluntary Markets: credits veriVied by popular Virms as per popular suds.
• Compliance Markets: Set by national, regional for international level:
⁃ Annual allowances or permits given by govt. For emission generation.
⁃ if emission crosses cap limit, purchase more allowances.
⁃ market prices determined by market forces.

BeneVits of Carbon Markets:

• Financial Incentives: trading of carbon emissions
• Cost-Effective Reduction: incentives for reduction of costs & emissions
• Business Flexibility: Choice btw red" of emission or buying credits.
• Clean tech promo: forces adaptation of cleaner technologies
• Support for Sustainability: funds for renewable energy, afforestation, reforestation & energy
efViciency projects.
• Climate Goal assessment
• Transparency & Accountability
• Revenue Generation

Challenges of Carbon Markets:

• Double Counting of Reduction occurs when same emission reduction is claimed by more than one
entity.
• Quality & Authenticity of Climate Projects
• Poor Market Transparency: availability & prices of credits/offsets.
• Green washings: practice of using carbon credits to create a false/misleading impression of
environmental responsibility w/o actual reduction.
• Regulatory uncertainty: lack of clarity/stability in policies.

Working of carbon credit trading:

• Allowance=1 metric ton of CO2 emission.
• Can be traded privately or internationally.
• Usually in euros/ton of CO2 emission.
• Methane emission is also counted in terms of multiple of CO2 emissions.
• Five markets:
⁃ European climate exchange
⁃ Chicago climate exchange
⁃ Nord pool
⁃ Power next
⁃ European energy exchange

Types of carbon credits:

EUAs (European Union allowances): issued by EU freely and valid for use within a set period of
emission trading scheme (EV ETS)
CER's (certiVied emission reductions): for developing countries of Kyoto Protocol which are used
for projects that cut carbon dioxide emissions.
ERUs (emission reduction units): credits created under JI of Kyoto Protocol.
VER's (veriVied emission reduction): provides a way to offset CO2 emission to become C neutral for
those not included in Kyoto Protocol.

Advantages of carbon credits: reduces CO2 emissions, saves energy, provides employment
opportunities, increases awareness of global warming, conserves natural habitat and resources,
introduces new tech.

Carbon credits with respect to India:

⁃ size of market is rupees 4000 crores.
⁃ second largest provider of CERs.
⁃ 2 commodity exchanges MCX and NCDEX
⁃ no emission targets.
 ⁃ 32.86% projects of CDM are from India.
⁃ Leader in registering CDM projects in Gujarat.

Traders of carbon credits in India:

Reliance power, Tata Motors limited, ITC, Tata Steel, blue star energy services, grasim industry
limited, SAIL, MP rural livelihood, Delhi metro rail corporation.

Delhi metro rail corporation: Virst railway project to receive carbon certiVication. It uses
regenerative braking systems to save electricity consumption up to 30%. Claims up to 4,00,000
CER's in 10 years = RS. 1.2 crores per annum for 10 years.

Unit 4: Integrated Sustainability Management:

Business and stakeholder relationships:
Business stakeholder groups:

• Primary stakeholder: direct stake in the organization and its success.

• Secondary stakeholders: public/special interest state in organization that is more indirect.
• External stakeholders, such as government, consumers, the natural environment, community
members.
• Internal stakeholders, such as employees, those involved in corporate governance, and others.

3 views of the Virm:

Stakeholder approaches: new line strategic approaches: stakeholders primarily as factor managers
should manage in pursuit of stakeholder proVits.
MultiViduciary approach -Views stakeholders as a group to which management has a Viduciary
responsibility.
Stakeholder synthesis approach - Considers stakeholders as a group to whom management owes
an ethical, but not a Viduciary, obligation.

Stakes of a stakeholder:
• the nature and legitimacy of a group’s stakes.
• the power of a group’s stakes.
• subgroups within a generic group.

Opportunities and challenges of stakeholders:

Opportunities:
• Build productive working relationship with stakeholders.
• The potential for cooperation
Challenges:
• Representative of how the Virm handles its stakeholders.
• The potential for threat.

What Responsibilities Does a Firm Have to its Stakeholders?

• Responsibilities are: Economic, Legal, Ethical, Philanthropic.
Effective Stakeholder Management:
Stakeholder Culture embraces the beliefs, values, and practices that organizations have developed
for addressing stakeholder issues and relationships.

Stakeholder management capability:

Strategic steps towards global stakeholder management:

1. Governing Philosophy
Integrate stakeholder management into the firm’s
governing philosophy.

2. Values Statement
Create a stakeholder-inclusive “values statement.”

3. Measurement System
Implement a stakeholder performance measurement system.

Implementation:
indicators of successful stakeholder management are survival, avoided costs, continued acceptance
& use, expanded recognition and adoption.
Unit: 5 & 6 Sustainability Management Approaches

History of Sustainable Management Strategies:

Corporate sustainability: Sustainability, stakeholders, integrated systems, EMS implementation,

design for environment, product stewardship, 0 discharge, pollution prevention, compliance audits,
end of pipe thinking, non-compliance.
Overall production management strategies to attain sustainability:
1. Dematerialization
2. Life cycle management
3. Product service systems
4. Triple bottom line concept
5. Policies new line reporting
6. Education and training

1. Dematerialization: Addressing needs and functionality rather than the product alone Tracking
throughput of materials and energy in industrial and consumption processes Major increase in
resource productivity.

2. Life cycle management: Life cycle thinking provides a holistic framework taking the entire
system of a product, process, or service into account, enabling us to make realistic choices for
the longer term taking multiple factors into account. Life cycle thinking needs tools to make it
practical to regular activities and decisions.

3. Product service systems: shifting the business focus from designing and selling physical
products only, to selling a system of products and services which are jointly capable of fulVilling
speciVic client demands. Three main approaches:
• Services providing added value to the product life cycle.
 • Services providing “Vinal results” for customers.
• Services providing “enabling platforms” for customers.
Sustainable Procurement: acquiring supplies/services by considering:
• value for money, Price, Quality etc.
• environmental aspects: Green procurement
• complete PLCs.
• Social aspects: Labor conditions, human eights etc.

4. Triple bottom line concept:

Three Pillars of Sustainable Development

Society Environment

Sustainable
Development

Economy

5. Policies new line reporting:

• Integrated Product Policy(IPP):
⁃ Lifecycle Thinking - from the “cradle to the grave/cradle”.
⁃ Working with the market – setting incentives by encouraging the supply and demand
of greener products.
⁃ Stakeholder Involvement – aims to encourage all those who meet the product.
⁃ Continuous Improvement
⁃ Variety of Policy Instruments –requires several different instruments because there
are such a variety of products and different stakeholders.
• Policy instruments to encourage Sustainable Consumption and Production
⁃ Regulatory: standards, norms, EPR (environmental performance reviews), labelling,
(enforcement).
⁃ Economic instruments: taxes, subsidies, credits, Vinancial incentives, etc.
⁃ Social: awareness raising, education, information, voluntary initiatives
⁃ Others: indicators, green accounting.

6. Reporting Practices in industries:

⁃ Environmental Policy statement
⁃ Environmental Impact assessment
⁃ Emergency preparedness
⁃ Environmental Statements
⁃ Environmental communication
⁃ Environmental Public relations
⁃ ESG
7. Education and training

Procedural tools to achieve sustainable business management:

• Environmental Management Systems
• Environmental Audit
• Eco-design (P2/CP)
• Environmental Performance Review (EPR)
• Environmental Impact Assessment (EIA)
• Total Quality Environmental Management (TQEM)

Life Cycle Analysis:

LCA is a holistic analytical technique for assessing the environmental effects associated with a
product, process, or activity.
⁃ System-wide, multi-media perspective
⁃ Functional unit accounting system
⁃ Comparative assessment of relative or functional unit differences
Inputs Life-Cycle Stages Outputs

Raw Materials Water

Effluents
Extraction/Processing
Airborne
Energy Emissions
Product Manufacturing
Solid
Product Use/Reuse Wastes
Raw
Materials Maintenance and Repair Products

EOL Disposition
Co-
Boundary Products

The Life Cycle Assessment

Framework

Direct applications
Goal & scope
definition

¨Product development
Interpretation

Inventory ¨ Strategic Planning

Analysis ¨ Public policy making
¨ Marketing
¨ Other
Impact
Assessment

Advantages:
1. Supports decision-making for product/production systems with scientiVic data and
competence.
2. IdentiVies opportunities of improvement
3. IdentiVies key impacts and life-cycle stages of system.
 4. Improves marketability of product (ecolabelling, environmental claim, product
declaration)
5. IdentiVies tradeoffs and information gaps.
6. Results in cost reductions, enhanced public image, competitive advantages, performance,
productivity, and proVits.
7. Helps companies to adopt a remanufacture approach to reduce the resource use and cost
8. Provides guidance towards optimizing the actual technology implementation by
pinpointing process steps with high environmental impact.

Disadvantages:
1. Availability and quality of life-cycle inventory data
2. Uncertainties in the inventory and in the impact assessment methodology
3. Impossible to assess the quality of results due to its complexity.
4. Differences in LCA problem formulation due to differences in values
5. High cost associated with a comprehensive LCA.
6. Practical difViculty in carrying out detailed life-cycle inventories and to translate the results
into appropriate actions.
7. Time consuming and complex nature of LCA.

Unit 7: Sustainable Energy Management:

⁃ Refers to the strategic and responsible planning, implementation, and optimization of
energy-related activities with a focus on environmental, social, and economic sustainability.
⁃ The goal is to meet current energy needs while minimizing negative impacts on the
environment, promoting social well-being, and ensuring long-term economic viability.

Energy EfOiciency
● EfVicient Use of energy resources
● Involves adopting technologies, practices, and policies, across various sectors, including
industry, transportation, and residential, that:
○ reduce energy consumption,
○ improve energy efViciency, and
○ minimize waste.

Energy Conservation
● Encouraging energy conservation practices
○ educating consumers,
○ promoting energy-saving behaviors, and
○ using technologies to manage energy demand during peak periods.

Lifecycle Analysis
● Assessing the environmental impact of energy systems throughout their entire lifecycle to
identify opportunities for improvement and reduce overall environmental footprint.
● This includes evaluating:
○ the extraction,
○ production,
○ distribution, and
○ disposal phases
Carbon Footprint Reduction:
● Involves minimizing carbon emissions and other greenhouse gas emissions associated with
energy production and consumption by
○ transitioning to low-carbon and carbon-neutral technologies,
○ implementing carbon capture and storage, and
○ supporting reforestation and other carbon offset initiatives.

Renewable Energy
● This includes harnessing energy from sources, which have lower environmental impacts
and contribute to a transition away from fossil fuels, such as
○ solar,
○ wind,
○ hydropower,
○ geothermal, and
○ biomass
Smart Grids and Technologies
● Use of smart grids and advanced technologies to enhance the efViciency and reliability of
energy distribution.
● Smart grids enable real-time monitoring, demand response, and optimization of energy
usage, contributing to a more resilient and sustainable energy infrastructure.

Demand Response: provides an opportunity for consumers to play a signiVicant role in the
operation of the electric grid by reducing or shifting their electricity usage during peak periods in
response to time-based rates or other forms of Vinancial incentives. Demand response programs
are being used by some electric system planners and operators as resource options for balancing
supply and demand. Such programs can lower the cost of electricity in wholesale markets, and in
turn, lead to lower retail rates.
Smart Grids do:
⁃ Delivery Optimization: Improve the efViciency and reliability of the delivery systems.
⁃ Demand Optimization: Empower the end consumer to reduce consumption. Manage the
evolving demand and supply equation along the distribution feeder.
⁃ Asset Optimization: Application monitoring and diagnostic technologies to help manage the
health, extend the useful life and to reduce the risk of catastrophic failure of electrical
infrastructure.

BeneOits of Smart Grids:

○ Reliability
○ Security against (cyber) attacks / disasters
○ Ease of repair (remote repair)
○ Increased info to consumers about E use
○ Increased E efViciency
○ Integration of alternative energy resources
○ Integration of plug-in vehicles
○ Reduction of peak demand (demand side management)
○ Lower capital costs than alternative energy
○ SigniVicant ROI: according to EIA

BeneOits of Energy EfOiciency:

Economic BeneVits: Resilience and Equity:
● Cost savings ● Grid Resilience
● Job Creation ● Social Equity
Environmental BeneVits:
● Emission Reduction
● Resource Conservation Industrial sectors:
Social BeneVits: ● Cost savings
● Health and Wellbeing ● Increased productivity
● Energy Access ● Resource Conservation
Commercial and Residential Buildings:
● Improved comfort
● Cost beneVits
Transportation:
● Less emissions
Energy EfOicient Technologies:
Industrial Sector:
⁃ Variable Frequency Drives / Motors
⁃ Energy efVicient compressors and
pumps
⁃ Combined heat and power
⁃ Advanced materials and coatings
⁃ Energy efVicient Motors and
equipment’s
Residential Sectors:
⁃ Energy efVicient lights
⁃ Smart power strips
⁃ Smart and programmable thermostats
⁃ Landscaping
⁃ Energy star rated appliances and
HVAC systems.
⁃ Energy monitoring systems
Transportation Sector:
⁃ Electric Vehicle
⁃ Lightweight Materials
⁃ Hybrid Vehicle
⁃ Renewable energy
⁃ Regenerative Braking systems
⁃ Aerodynamic Design
Transmission and Distribution Sector:
⁃ Superconducting power cable
⁃ Demand Response systems
⁃ Energy storage systems
⁃ Distributed energy resources
⁃ Smart grid technologies
⁃ Energy efVicient substation
Service Sector:
⁃ Virtualization
⁃ E- Waste recycling
● Fuel efViciency
● Urban Planning
Resilience and Equity:
● Grid Resilience
● Social Equity
⁃ Energy efVicient Lights
⁃ Waste Heat recovery
⁃ Demand response systems
⁃ Advanced process control
⁃ Industrial Insulation
⁃ Smart Sensors and Automation
⁃ Windows and Insulations
⁃ Smart Sensors and Automation
⁃ ReVlective rooVing materials and colors
⁃ Energy efVicient elevators
⁃ Natural ventilation systems
⁃ Modular construction
⁃ Advanced engine technologies
⁃ Idle - Reduction Technologies
⁃ TrafVic Management and intelligent
transportation systems
⁃ Public transportation
⁃ Vehicle to grid Technology
⁃ High EfViciency transformers
⁃ Fault detection and localization
systems
⁃ Distribution Automation
⁃ Energy EfVicient Insulators
⁃ Predictive Analytics and AI
⁃ Cloud computing
 ⁃ Video conferencing and collaboration
tools
⁃ Energy efVicient Data centers
⁃ Renewable energy sourcing
⁃ Green building and energy efVicient
equipment’s
Energy Stakeholders:
Government Agencies
⁃ Policy development
⁃ Enforce regulations.
⁃ License & Permits
⁃ Grid Mgt
Energy Companies
⁃ Exploration and
Extraction
⁃ Energy Production
⁃ Infrastructure
Development
Consumers Agencies
⁃ Demand for Energy
⁃ Behavioral changes
⁃ Market Forces
⁃ Energy Conservation
Financial Institutions
⁃ Capital Investments
⁃ Risk Management
⁃ Project Financing
Environmental Organizations
⁃ Climate change
mitigation
⁃ Policy inVluence
⁃ Public awareness
and Education
⁃ Data compression and storage
optimization
⁃ Building energy management systems
⁃ Green IT policies
⁃ Incentives & ⁃ Research and
subsidies Development
⁃ Energy Security ⁃ Market Monitoring
⁃ Market Participation ⁃ Compliance and
⁃ Innovation and Regulations
Technology ⁃ DiversiVication
⁃ Environment and ⁃ Community
social responsibility Engagement
⁃ Choice of energy ⁃ Policy inVluence
source ⁃ Economic Impact
⁃ Technological ⁃ Social Responsibility
adoption
⁃ Market trading and ⁃ InVluence corporate
hedging strategy.
⁃ Investor relations ⁃ Policy advocacy
⁃ ESG ⁃ Global Impact
⁃ Litigation and Legal ⁃ Partnership and
action collaborations
⁃ Promotion of energy ⁃ Community
efViciency engagement
⁃ Research and
Innovation
Research Institutions & Academia
⁃ Technological ⁃ Research and ⁃ Environment and
innovations development social impact
⁃ Policy development ⁃ Education and assessment
⁃ Collaboration with workforce ⁃ International
Industry development collaboration
⁃ Testing and ⁃ Interdisciplinary
validation research

Technology Providers
⁃ Research and Innovation
⁃ Technology commercialization
⁃ Deployment of renewable energy
⁃ Energy storage solutions
⁃ Smart grid technologies
⁃ Energy efVicient solutions
⁃ ElectriVication of transportation
⁃ Grid integration
⁃ Decentralization of energy systems

Utility and grid Operators

⁃ Electricity generation ⁃ Customer service and billing
⁃ Transmission and Distribution ⁃ Regulatory compliance
⁃ Grid Operation and Planning ⁃ Investment and Infrastructure
⁃ Demand side management ⁃ Grid Resilience and security

Community and local groups

⁃ Community engagement ⁃ Property rights and landscapes
⁃ Participation and decision making ⁃ Community owned renewable
⁃ Environment Protection projects.
⁃ Health and safety concerns ⁃ Education and awareness

International initiatives
⁃ Policy coordination’s ⁃ Advocacy for sustainable development
⁃ Standardization and harmonization ⁃ Energy access initiatives
⁃ Technology transfer ⁃ ConVlict resolutions
⁃ Data collection and analysis ⁃ Financial support
⁃ Capacity building ⁃ Climate change mitigation

Technologies and Pathways for sustainable energy future:

⁃ Renewable Energy Sources: Solar, Wind, Tidal, Geothermal, Biomass, Hydro.
⁃ Energy Storage: Advanced battery technology, Pumped hydro storage
⁃ Smart Grids and Energy Management: Smart Grids, Demand Response
⁃ Carbon Capture and Storage
⁃ Green Hydrogen
⁃ Advanced Nuclear reactors
 ⁃ Transport electriVication: Electric / Hydrogen vehicles, Charging infrastructure, Smart
plugs / chargers.
⁃ Energy EfViciency and Conservation: Energy efVicient Building design, Energy efVicient
Industrial practices

Unit 8: Green Buildings and Sustainable Construction:

Need:
⁃ Energy conservation.
⁃ Minimize the use of high energy materials.
⁃ Concern for environment, environment-friendly technologies.
⁃ Minimize transportation and maximize the use of local materials and resources.
⁃ Decentralized production and maximum use of local skills.
⁃ Utilization of industrial and mine wastes to produce building materials.
⁃ Recycling of building wastes, and Use of renewable energy sources.

Green Buildings (Sustainable Building): designed, built, renovated, operated, or re-used in an

ecological and resource efVicient manner.

Objectives of green buildings:

⁃ Protecting occupant health.
⁃ Improving employee productivity.
⁃ Using energy, water, and other resources more efViciently.
⁃ Reducing overall impact to the environment.
⁃ Optimal environmental and economic performance.
⁃ Satisfying and quality indoor spaces.

Goal: Minimize the negative impacts on the environment while promoting health and well-being
for occupants.

Considers the entire life cycle of a building, from design and construction to operation and
eventual demolition or reuse.

Six principles of green building: Design efViciency, Energy efViciency, Water efViciency, Materials
efViciency, Indoor Air Top quality, Waste reduction.

BeneVits:
1. Environmental beneVits: Emission Reduction, Water Conservation, Temperature Moderation,
Waste Reduction.
2. Economic beneVits: Energy and Water Savings, Increased Property Values, Decreased Site
Infrastructure, Sales Improvement, Low emitting paint and recycled paint.
3. Social beneVits: Improved Health, Improved Schools, Healthier Lifestyles and Recreation.
Design:
Right site:
⁃ Buildings sited near major bus, train and subway lines encourage use of public transit.
⁃ Orient the building to minimize the effects of winter wind.

Landscaping:
⁃ Preserve native plant populations through careful site planning and protection of existing
vegetation.
⁃ Plant native or well-adapted species.
⁃ Minimize the use of high maintenance lawns.

Environment EfVicient Design: Resource Thinking, Sustainable practices, Innovation and

continuous improvement, Life cycle thinking

Green Building standards include:

⁃ Leadership in Energy and Environmental Design (LEED): dependent upon number of points
earned.
⁃ Green Globes: Environmental impacts assessed on a 1,000-point scale in multiple categories:
1. Energy
2. Indoor Environment
3. Site
4. Water
5. Resources
6. Emissions
7. Project/Environmental Management
⁃ Model Green Homebuilding Guidelines:
⁃ Built Green
⁃ Energy Star

Natural Day lighting: This reduces the need for electrical light sources, thus cutting down on
electricity use and its associated costs and pollution.
Challenges to Green building:
• Cost and Return on Investment • Performance Gap
• Lack of standardization • Education and Awareness
• Technological Innovation and Adaptation • Regulatory challenges
• Supply chain challenges • Occupant Behavior
• Overemphasis on certiVication

Strategies to overcome challenges:

• Financial Incentives • Local Sourcing
• Lifecycle cost analysis • DiversiVication of suppliers
• Promote certiVication. • Holistic design Approach
• Standardization • Cost BeneVit analysis

Challenges connected to waste management:

• Construction and Demolition Waste • Waste sorting
• End of Life Disposal • Transportation related impact
• Packaging waste • Recycling infrastructure
• Operational waste

Overcome challenges to waste management:

• Material selection • Waste management plan
• Modular design • Onsite recycling
• Minimizing excess Materials • Collaboration with local facilities
• Use of reusable materials • Enforcing of regulations
• Minimize packing. • Incentive programs
• Local sourcing • Industry collaboration

Unit 9 & 10: Corporate Social Responsibility:

Framework:

Ethical
Governance

Stakeholder Environmental
Engagement Sustainability

Transparency
and
Reporting

Supply chain Community

Management Engagement

Employee
Engagement
 Traditional CSR Patterns Emphasize:
⁃ Emphasizes Obligation, Accountability
⁃ Emphasizes Action, Activity
⁃ Corporate Social Performance (CSP) Emphasizes Outcomes, Results

Newer Terms with Similar Meanings:

⁃ Corporate Citizenship (CC) – Views companies as citizens and all this implies.
⁃ Corporate Responsibility (CR) – Broadly Focuses on all categories of corporate
Responsibility.
⁃ Sustainability (SUS) – Emphasizes longer-term concern for people, planet, and proVits.

Historical Perspective: Economic Model -> Legal Model -> Social Model -> Stakeholder Model.

Components of CSR: All 4 = Total Corporate CSR

Responsibility Societal Expectation Examples
Economic Required Be proVitable. Maximize sales, minimize costs.
Legal Required Obey laws, adhere to regulations.
Ethical Expected Avoid questionable practices. Do what is right, fair, and just.
Philanthropic Desired/Expected Be a good corporate citizen. Give back.

Top 20 Activities or Characteristics of a Socially Responsible Company:

• Makes products that are safe.
• Does not pollute air or water.
• Obeys the law in all aspects of business.
• Promotes honest or ethical employee behavior.
• Commits to safe workplace ethics.
• Does not use misleading or deceptive advertising.
• Upholds stated policy banning discrimination.
• Utilizes “environmentally friendly” packaging.
• Protects employees against sexual harassment.
• Recycles within company.
• Shows no past record of questionable activity.
• Responds quickly to customer problems.
• Maintains waste reduction program.
• Provides or pays portion of medical costs.
• Promotes energy conservation program.
• Helps displaced workers with placement.
• Gives money toward charitable or educational causes.
• Utilizes only biodegradable or recyclable materials.
• Employs friendly or courteous or responsive personnel.
• Tries continually to improve quality.
Theories of CSR:
1. Instrumental Theory:
⁃ Businesses serve their own self-interests and to achieve tangible beneVits that contribute
to their Vinancial performance.
⁃ Views CSR activities as strategic investments.
⁃ ProVit Maximization
⁃ Risk Management
⁃ Enhanced Reputation
⁃ Cost Savings

2. Political Theory:
⁃ Advocates for business’ responsibility to address social and environmental issues
beyond their economic interests.
⁃ Views CSR as a way for businesses to contribute to broader societal goals and to
participate in shaping public policies
⁃ Corporate citizenship
⁃ Stakeholder Pressure
⁃ Public Policy InVluence
⁃ Social Justice

3. Integrative Theory:
⁃ Advocates for the integration of social and environmental considerations into the core
business strategy and operations of companies.
⁃ This perspective focus on alignment of business goals with societal needs and values,
aiming for mutual beneVit for both the company and society
⁃ Shared value
⁃ Innovation
⁃ Stakeholder engagement
⁃ Long term sustainability

4. Ethical Theory:
⁃ Focuses on the moral obligations of businesses to act ethically and responsibly toward
all stakeholders, beyond mere compliance with laws and regulations.
⁃ Views CSR as a matter of ethical principles and values, guided by considerations of
fairness, justice, integrity, and respect for human rights.
⁃ Ethical Decision making
⁃ Respect for Human dignity
⁃ Sustainability and Responsibility
⁃ Social Justice

Arguments against CSR:

• Classical Economics: The classical economic view is that business’s only goal is the
maximizing of proVits for owners.
 • Business Not Equipped: Business is not equipped to handle social activities.
• Dilutes Business Purpose: It dilutes the primary purpose of business.
• Too Much Power Already: Businesses have too much power already.
• Global Competitiveness: It limits the ability to compete in a global marketplace.

Arguments in Support of CSR:

• Enlightened self-interest: Businesses must take actions to ensure long-term viability.
• Warding off government regulations. This is one of the most practical reasons.
• Resources Available: Business has the resources and expertise. Let it try.
• Pro-action is better than Reaction. Pro-action is also less costly.
• Public supports: the public strongly supports CSR.

Levels of Strategy in CSR:

• Enterprise Level: CSR initiatives are aligned with the organization's mission and core
values. Focus on broad themes such as environmental stewardship, social impact, and
ethical business practices.

• Corporate Level: Focuses on how the company can achieve synergies across its various
business units and maximize overall corporate performance. Involve setting overall targets
and guidelines, for CSR performance, allocating resources, and monitoring progress across
the organization

• Business Level: Involves decisions about product offerings, market positioning, &
competitive advantage. Involves integrating social & environmental considerations into
product design and development, supply chain management, and customer engagement
strategies

• Functional Level: involves decisions made by departments or functional areas within the
organization. Include incorporating sustainability criteria into procurement decisions,
promoting employee volunteer programs, and integrating CSR messaging into marketing
campaigns

Internal Strategies:
• Establishing corporate culture and value ethics, sustainability, and social responsibility by
top management
• Development of clear CSR policies and guidelines, outlining the company's commitments,
standards, and expectations regarding ethical conduct, environmental stewardship, and
social impact.
• Engaging employees in CSR initiatives through volunteer programs, sustainability training,
• opportunities for involvement in community projects & embedding CSR activities into
performance evaluation and incentive systems.
• Collaborating with supplier, monitoring, and engagement processes to ensure ethical.
sourcing practices, fair labour standards, and environmental sustainability throughout the
supply chain.
• Implementing strategies to minimize environmental impact, reduce resource consumption,
and promote sustainability across operations.
External Strategies:
• Engaging with stakeholders, to understand their perspectives, needs, and expectations
regarding CSR.
• Transparency about CSR initiatives, performance, and impacts through regular reporting
and communication channels.
• Collaborating with external partners, like non-proVits organizations, academia, government
agencies, and other businesses, to leverage resources, expertise, and networks for
addressing social and environmental challenges more effectively.
• Engaging in public policies and regulations that promote sustainability, social justice, and
responsible business practices at local, national, and international levels.
• Investing in community development projects, philanthropic initiatives, and charitable
giving programs to address social needs and contribute to the well-being of communities
where the company operates.

Collaborative Approach to meet socially responsible organization:

• Multi-Stakeholder Partnerships:
• Forming partnerships that involve stakeholders to address speciVic social or
environmental issues collaboratively.
• Partnerships enable shared decision-making, resource sharing, knowledge sharing
and collective action to achieve common goals.
• Cross Sector Collaboration:
• Facilitating collaboration between different sectors to address systemic issues that
require coordinated efforts and multi-sectoral solutions.
• Fosters innovation, enhances coordination, enhances accountability and
transparency, builds trust and social capital, address challenges and root causes,
and maximizes impact by leveraging the complementary strengths of each sector.
• Supply Chain Collaboration:
• Collaborating with suppliers, subcontractors, and other partners throughout the
supply chain to promote ethical sourcing practices, improve labour standards, and
enhance environmental sustainability.
• Involves transparency, ethical sourcing, fair labour practices, dialogue, and capacity-
building to address social and environmental risks and opportunities across the
supply chain.
• Collective Impact Initiatives:
• Participating in collective impact initiatives that bring together multiple
stakeholders from different sectors to address complex social problems
systematically.
• Structured approach to collaboration, including a common agenda, shared
measurement systems, mutually reinforcing activities, continuous communication,
and backbone support organizations
• Public Private Partnership:
• Engaging in partnerships between governments and businesses to address social
and environmental challenges through joint initiatives, investment projects, and
policy interventions.
 • Leverage the respective strengths of the public and private sectors to achieve
shared objectives, such as infrastructure development, public service delivery, or
environmental conservation.
• Cross Industry Collaboration:
• Collaborating with competitors, industry associations, and other stakeholders
within the same industry to address industry-wide challenges, promote best
practices, and drive collective action on CSR issues.
• Pre-competitive cooperation, knowledge sharing, and industry-wide
transformation.
• Social Innovation Networks:
• Participating in networks and platforms dedicated to social innovation,
sustainability, and corporate responsibility to exchange knowledge, share best
practices, and collaborate on innovative solutions to pressing social and
environmental issues.
• Opportunities for learning, collaboration, and collective problem-solving across
sectors and geographies.
Business Responses Approaches: Defensive approach, Cost beneVit approach, Strategic
Approaches, Innovation & Learning Approach.

Caroll’s Model:
• Philosophy of Social Responsiveness: Proactive, Accommodation, Defence, Reaction.
• Social Issues (Stakeholders) Involved: Shareholders, Occupational Safety, Product Safety,
Discrimination, Environment, Consumerism.
• Social Responsibility: Discretionary, ethical, legal & economic responsibilities.
Unit 11 & 13: CSR Reporting and Auditing & Sustainability Reporting Frameworks:

Sustainability Reporting Tools:

Frameworks: Principles, giudance, and protocols that aid in disclosure of outcomes that occur in
context of Virms commitments, strategy and management approach.

Standards (similar to frameworks): more formal documentation, used to ensure sustanaibility

efforts are achieved.

Ratings and indices: Third party evaluation of ESG performance.

International Environmental Responses:

• Global Compact: joins Virms across the world to support environmental and social
principles.
• Global Reporting Initiative (GRI) – a collaborating center of the UNEP. GRI developed a
sustainability reporting framework, now the most widely used standard in the world;
outlines principles and indicators that organizations can use to measure and report their
economic, environmental, and social performance.

Key Aspects of GRI:

1. Sustainability Reporting Standards: GRI develops and updates Sustainability Reporting
Standards for economic, environmental, and social impacts, covering topics like
greenhouse gas emissions and labor practices.

2. Multi-Stakeholder Engagement: GRI engages diverse stakeholders, ensuring its

standards reVlect broad interests and expectations.

3. Principles-Based Approach: GRI's reporting standards prioritize materiality, stakeholder

inclusiveness, and sustainability context for comprehensive reporting.

4. Flexibility and Adaptability: Standards are Vlexible to suit different organizations,

allowing customized reporting based on speciVic needs and priorities.

5. Continuous Improvement and Innovation: GRI evolves its standards in response to

sustainability trends and stakeholder input, fostering innovation in reporting practices.

6. Promotion of Transparency and Accountability: GRI fosters transparency and

accountability by promoting open and honest sustainability reporting.

7. Global Recognition and Adoption: GRI's globally recognized standards are widely
adopted by organizations, investors, regulators, and stakeholders worldwide.
Framework of GRI:

1. GRI Standards: The GRI Standards consist of three parts:

⁃ Foundation: Includes principles for report content, quality, and guidance on materiality
and stakeholder engagement.
⁃ Universal Standards: Offer general reporting guidance and requirements.
⁃ Topic-SpeciVic Standards: Offer detailed guidance on speciVic sustainability issues like
emissions and human rights.

2. GRI Content Index: A vital part of reporting, it lists sustainability disclosures referencing
relevant GRI Standards, aiding stakeholders in Vinding speciVic information.

3. Sector-SpeciVic Standards: Tailored to industries, these standards provide extra guidance

and indicators for sector-speciVic challenges such as mining and banking.

4. GRI Reporting Guidelines: Comprehensive resources for organizations to prepare

sustainability reports, covering report preparation, data collection, and assurance.

5. Materiality Assessment: Encourages organizations to prioritize relevant sustainability

topics based on stakeholder signiVicance and impact on economic, environmental, and
social factors.

Global Compact Self-Assessment tool:

⁃ The Global Compact Self-Assessment Tool by the UNGC aids organizations in measuring
their adherence to the Global Compact's Ten Principles and advancing sustainability.

⁃ The UN Global Compact urges businesses to align with ten principles covering human
rights, labour, environment, and anti-corruption.

⁃ Ten Principles stem from key international declarations and agreements, ensuring a broad
foundation for corporate responsibility.

⁃ Organizations can gauge their progress in integrating the Ten Principles using the Global
Compact Self-Assessment Tool.

⁃ The tool offers a structured questionnaire covering human rights, labour standards,
environmental responsibility, and anti-corruption measures.

10 Principles:
• Human Rights:
• Principle 1: Businesses should support and respect the protection of internationally
proclaimed human rights within their sphere of inVluence.
• Principle 2: Businesses should make sure that they are not complicit in human rights
abuses.
 • Labor Standards:
• Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining.
• Principle 4: Businesses should support the elimination of all forms of forced and
compulsory labor.
• Principle 5: Businesses should support the effective abolition of child labor.
• Principle 6: Businesses should support the elimination of discrimination in respect of
employment and occupation.
• Environment:
• Principle 7: Businesses should support a precautionary approach to environmental
challenges.
• Principle 8: Businesses should undertake initiatives to promote greater environmental
responsibility.
• Principle 9: Businesses should encourage the development and diffusion of
environmentally friendly technologies.
• Anti-Corruption:
• Principle 10: Businesses should work against corruption in all its forms, including
extortion and bribery.

Unit 14: ESG:

• Responsible reporting and investing by organizations.
• Integration of environmental, social and governance (ESG) factors
• Used for investment processes and decision-making.
• The term ESG was Virst coined in 2005 in a landmark study entitled “Who Cares Wins.”

ESG is different from SRI.

• Socially Responsible Investment (SRI) movement that has been around much longer.
• SRI is based on ethical and moral criteria and uses mostly negative screens, such as not
investing in alcohol, tobacco, or Virearms.
• ESG investing assumes that ESG factors have Vinancial relevance.

ESG and CSR

• While CSR aims to make a business accountable, ESG criteria make its efforts measurable.

ESG can be calculated as a Score and

tells us how an organization:
• Respond to Climate Change
• Treat their Workers.
• Manage their Supply Chain
• Build Trust & foster
Innovation.
E: Water efViciency, Energy EfViciency, Carbon Intensity, Environmental Management System
(EMS), Biodiversity, Climate Clean Energy, Water EfViciency.

S: Health & Safety, Human Rights, Customer & product responsibility, Child Labor, freedom of
association, Equal opp.

G: Board independence, exec compensation, shareholder democracy, mitigating conVlicts of

interests, compliance, business ethics.
BeneOits of ESG:
1. Improved Vinancial performance due to ESG becomes more marked over longer time horizons.
2. ESG integration, broadly speaking as an investment strategy, seems to perform better than
negative screening approaches. A recently released Rockefeller Asset Management study Vinds
that ESG integration will increasingly be demarcated between “Leaders” and “Improvers” with
the latter showing uncorrelated alpha enhancing potential over the long-term (Clark & Lalit,
2020).
3. ESG investing appears to provide downside protection, especially during a social or economic
crisis.
4. Sustainability initiatives at corporations appear to drive better Vinancial performance due to
mediating factors such as improved risk management and more innovation.
5. Studies indicate that managing for a low carbon future improves Vinancial performance.
6. ESG disclosure on its own does not drive Vinancial performance.

Unit 12: Sustainable Development Goals (SDGs):

1. End poverty in all its forms everywhere.
2. End hunger, achieve food security and improved nutrition, and promote sustainable
agriculture.
3. Ensure healthy lives and promote well-being for all at all ages.
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities
for all.
5. Achieve gender equality and empower all women and girls.
6. Ensure availability and sustainable management of water and sanitation for all.
7. Ensure access to affordable, reliable, sustainable, and modern energy for all.
8. Promote sustained, inclusive, and sustainable economic growth, full and productive
employment, and decent work for all.
9. Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster
innovation.
10. Reduce inequality within and among countries.
11. Make cities and human settlements inclusive, safe, resilient, and sustainable.
12. Ensure sustainable consumption and production patterns.
13. Take urgent action to combat climate change and its impacts.
14. Conserve and sustainably use the oceans, seas, and marine resources for sustainable
development.
15. Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage
forests, combat desertiVication, and halt and reverse land degradation and halt biodiversity loss.
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice
for all, and build effective, accountable, and inclusive institutions at all levels.
17. Strengthen the means of implementation and revitalize the global partnership for sustainable
development.