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Doing Business Responsibly
Bombay Chamber of Commerce
10th May 2013
Complex Business Environment
2
Globalization
Digital
Connectivity
Accelerated
Consumption
Disparate
Prosperity
Ecological Decline
Resource Scarcity
Lack of Global
Governance
Global Sustainability issues- Megaforces
Climate
Change
Energy &
Fuel
Material
Resource
Scarcity
Water
Scarcity
Population
Food Security Urbanization
Eco-System
Decline
Deforestation
Climate Change
• World temperatures have risen 0.7 degree C
• Developing countries face highest risk
• Melting Glaciers
• Increase in cyclonic intensity
• Reduced crop yield
• 1 degree rise adversely
impacts 6 million tons of
wheat production
• Reduction in milk productivity
• Sea level rising
Effects of climate change
• World temperatures have risen 0.7 deg C
• Beyond a threshold of 2 deg C the risk of large scale
human development setbacks & irreversible
ecological catastrophe’s will increase sharply.
• The current energy path is not sustainable. In the
baseline scenario CO2 emissions will rise by 130%
and oil demand will rise by 70%. leading to avg.
global temperature rise of about 6 deg. C
What is this?
Floods in Asia & Europe
7
Doing business reponsibly
Climate Change
Business activities have had a
negative impact on the
environment.
Resource depletion
Availability of various natural resources
have become scarcer thus more
expensive and subject to price volatility
Increasing manufacturing costs and risks
Stakeholder’s concerns
Government licence is not sufficient to
operate. You also need social license.
Connected world
Millions are getting connected to the
internet through mobiles and computers
It’s good for business
Large companies want to protect their
reputation
Helps bring down costs
Opportunity for innovation
India: Actions on Sustainable Development
• Low carbon sustainable growth to be central element of 12th
Five Year Plan
• India has pledged to reduce the emission intensity by 20-25%
of the 2005 level by 2020.
• Adopted the National Action Plan on Climate Change(NAPCC).
– Eight Missions form the core of NAPCC.
• New E-waste rules – responsibility with manufacturer to
dispose.
• National Voluntary Guidelines on Social, Environmental &
Economic Responsibilities of Business released by Ministry of
Corporate Affairs
– Emphasizing that businesses have to take responsibility so
that their actions lead to sustainable growth and
economic development.
Did you know?
• Of the top 100 economic entities in the world, 40
are corporates
• Contribution of 50 top consumer goods
companies and their value chains makes them 6th
rank in CO2 emissions. Their footprint is of
Germany & France combined.
• Reduction of 25% would be equivalent to
removing emissions from Netherlands.
9 principles of how businesses
should operate
Role of SMEs
Globally,
– SMEs represent more than 90% of business
– On an average account for 50% of GDP of all
countries
– 60% of their employment
– As a sector contribute to 70% of all industrial
pollution
– In India, 40% of industrial production, 45% of
exports and 9% of GDP.
Key environmental issues
– Reduction of energy use
• Heating, lighting, office equipment, compressed
air,motors, fans and pumps
– Reduction in water consumption
– Waste minimisation
– Reduction of transport costs
– Compliance to regulations
Sustainability Thrust Areas
19
Climate Change
• Carbon footprint
mapping of L&T
Operations
Energy
Conservation
• Energy audits of
manufacturing
locations
• Improve energy
conservation metric
• Increase use of
renewable energy
Water
Conservation
• Adopting zero-
discharge approach
• Reducing per capita
water consumption
• Rain Water
Harvesting (RWH)
Sustainability Thrust Areas
20
Waste
Management
• Material waste
reduction
• Reduce,
Recycle/Reuse,
Recover
Safety
• Enhance level of
safety training
• Improving Safety
performance at
workplace
Social
• Mother and Child
Health care
• Education
• Skill Building
Resource optimisation-
lowering material intensity in
contactors
60
40
22.1
13.6
0
10
20
30
40
50
60
MK
ML
M-Line
MO
Reduction in gm/A
L&T’s Solar Energy 407 KW
Grid Connected Plant
Renewable Energy
22
L&T’s Wind Energy Farm of
7.5 MW – South India
Chennai
Talegaon
Ahmednagar
Hazira
23
1.2
million
sq. ft.
of
Green
Building
space
Green and BEE Star rated Buildings
BEE Star
rated
buildings
10 Check Dams Constructed in Thane District
Collects 20 -30 million liters of water, potential to cultivate 250 acres of land &
benefiting 6000 families
Watershed development
Thrust Areas
Mother & Child Health
Care
Education
Skill Building
Over 5,00,000
benefited
25
7: CSTIs
Tie ups: 27 ITI’s, 6 NGO’s
12: Construction trades
3 months course with
stipend
Promoting employability
Target: Rural youths /
school dropouts
Site based training
modules
Business Connect
Construction Skill Building Initiative
26
• Encouraging skills of the
"Differently Abled”
• Infrastructure help
• Mainstreaming
• Creating livelihood
opportunities
Project Neev
27
L&T’s Sustainability Initiatives
28
Sustainability – Environment Performance
Sustainability – Environment Performance
30
Use of Alternate Material Use of Recycled materials
Energy Conservation Initiatives
Doing business reponsibly
We do not inherit the earth from our
ancestors,
We borrow it from our Children.
Thank You

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Doing business reponsibly

  • 1. Doing Business Responsibly Bombay Chamber of Commerce 10th May 2013
  • 3. Global Sustainability issues- Megaforces Climate Change Energy & Fuel Material Resource Scarcity Water Scarcity Population Food Security Urbanization Eco-System Decline Deforestation
  • 4. Climate Change • World temperatures have risen 0.7 degree C • Developing countries face highest risk • Melting Glaciers • Increase in cyclonic intensity • Reduced crop yield • 1 degree rise adversely impacts 6 million tons of wheat production • Reduction in milk productivity • Sea level rising
  • 5. Effects of climate change • World temperatures have risen 0.7 deg C • Beyond a threshold of 2 deg C the risk of large scale human development setbacks & irreversible ecological catastrophe’s will increase sharply. • The current energy path is not sustainable. In the baseline scenario CO2 emissions will rise by 130% and oil demand will rise by 70%. leading to avg. global temperature rise of about 6 deg. C
  • 7. Floods in Asia & Europe 7
  • 9. Climate Change Business activities have had a negative impact on the environment.
  • 10. Resource depletion Availability of various natural resources have become scarcer thus more expensive and subject to price volatility Increasing manufacturing costs and risks
  • 11. Stakeholder’s concerns Government licence is not sufficient to operate. You also need social license.
  • 12. Connected world Millions are getting connected to the internet through mobiles and computers
  • 13. It’s good for business Large companies want to protect their reputation Helps bring down costs Opportunity for innovation
  • 14. India: Actions on Sustainable Development • Low carbon sustainable growth to be central element of 12th Five Year Plan • India has pledged to reduce the emission intensity by 20-25% of the 2005 level by 2020. • Adopted the National Action Plan on Climate Change(NAPCC). – Eight Missions form the core of NAPCC. • New E-waste rules – responsibility with manufacturer to dispose. • National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business released by Ministry of Corporate Affairs – Emphasizing that businesses have to take responsibility so that their actions lead to sustainable growth and economic development.
  • 15. Did you know? • Of the top 100 economic entities in the world, 40 are corporates • Contribution of 50 top consumer goods companies and their value chains makes them 6th rank in CO2 emissions. Their footprint is of Germany & France combined. • Reduction of 25% would be equivalent to removing emissions from Netherlands.
  • 16. 9 principles of how businesses should operate
  • 17. Role of SMEs Globally, – SMEs represent more than 90% of business – On an average account for 50% of GDP of all countries – 60% of their employment – As a sector contribute to 70% of all industrial pollution – In India, 40% of industrial production, 45% of exports and 9% of GDP.
  • 18. Key environmental issues – Reduction of energy use • Heating, lighting, office equipment, compressed air,motors, fans and pumps – Reduction in water consumption – Waste minimisation – Reduction of transport costs – Compliance to regulations
  • 19. Sustainability Thrust Areas 19 Climate Change • Carbon footprint mapping of L&T Operations Energy Conservation • Energy audits of manufacturing locations • Improve energy conservation metric • Increase use of renewable energy Water Conservation • Adopting zero- discharge approach • Reducing per capita water consumption • Rain Water Harvesting (RWH)
  • 20. Sustainability Thrust Areas 20 Waste Management • Material waste reduction • Reduce, Recycle/Reuse, Recover Safety • Enhance level of safety training • Improving Safety performance at workplace Social • Mother and Child Health care • Education • Skill Building
  • 21. Resource optimisation- lowering material intensity in contactors 60 40 22.1 13.6 0 10 20 30 40 50 60 MK ML M-Line MO Reduction in gm/A
  • 22. L&T’s Solar Energy 407 KW Grid Connected Plant Renewable Energy 22 L&T’s Wind Energy Farm of 7.5 MW – South India
  • 24. 10 Check Dams Constructed in Thane District Collects 20 -30 million liters of water, potential to cultivate 250 acres of land & benefiting 6000 families Watershed development
  • 25. Thrust Areas Mother & Child Health Care Education Skill Building Over 5,00,000 benefited 25
  • 26. 7: CSTIs Tie ups: 27 ITI’s, 6 NGO’s 12: Construction trades 3 months course with stipend Promoting employability Target: Rural youths / school dropouts Site based training modules Business Connect Construction Skill Building Initiative 26
  • 27. • Encouraging skills of the "Differently Abled” • Infrastructure help • Mainstreaming • Creating livelihood opportunities Project Neev 27
  • 30. Sustainability – Environment Performance 30 Use of Alternate Material Use of Recycled materials Energy Conservation Initiatives
  • 32. We do not inherit the earth from our ancestors, We borrow it from our Children.