Inclusive Growth – Is Sustainability the Answer ? | Dr. Yogendra Saxena, Tata Power

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Inclusive Growth – Is Sustainability the Answer ?

Dr. Yogendra SaxenaSeptember 26, 2013

Tata Power- An Introduction

• India’s largest integrated private power utility company

• Presence across the entire value chain

• Founded in 1906 to supply power to Mumbai

– First hydro plant commissioned in 1915

– Set up thermal power plants in Mumbai in 1960s

• Thrust on renewable energy sources including hydro, wind, solar and

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• Thrust on renewable energy sources including hydro, wind, solar and

geothermal

• Successful Public Private Partnerships in generation, transmission and

distribution

Our Vision & Mission

To be the most admired and Responsible integrated Power Company

with a global footprint, delivering sustainable value to all Stakeholders.

Leadership with Care!!!


Leadership with Care!!!

Care for Environment, Shareholders, Customers, Community, People,

Employees, Partners & Suppliers

History – Sustainable Development

1972: UN Stockholm - Declaration of the United Nations Conference on the

Human Environment

1991-92:Beginnning of Voluntary Environment Initiative i.e. Environment

Management Systems (ISO 14001- Mid 90s)

1987: United Nations released Brundtland Report, which defined Sustainable

Development as:


“Sustainable Development is development that meets the needs of the

present without compromising the ability of future generations to meet their

own needs”

1992: Earth Summit, Rio Conference Over 178 Countries adopted the

recommendations of Earth Summit

Agenda 21: Better know as The Rio Declaration on Environment and

Development having 27 principles that express the rights and responsibilities

of nations and human development

History - Sustainable Development

At the 2005 World Summit, it was noted that the concept requires the

reconciliation of Environmental, Social equity and Economic demands – the

"three pillars" of sustainability or (the 3 E's).

EMERGENCE OF GLOBAL REPORTING INTIATIVE


The Global Reporting Initiative (GRI), The Netherlands, is working towards a

sustainable global economy by providing Sustainability ReportingGuidelines. GRI has pioneered and developed a comprehensive

Sustainability Reporting Framework that is widely used around the world.

The Framework enables all organizations to measure and report their

Economic, Environmental, Social and Governance performance – the

key areas of Sustainability Reporting better known as TBL.

Sustainable Development or Sustainability

Transition

Growth

Development

Well-being


Well-being

Inclusive Wealth

Inclusive Investment

Inclusive Growth

InnovationCapital efficiencyRisk Management

Total Shareholder Return

Resource efficiency

Product Stewardship

Lifecycle Management

Product to Services

Economic Growth

Socio Eco- Efficiency

Job Creation

Skill Enhancement

Local Economic Impacts

Social Investments

Business Ethics

Triple Bottom Line (TBL)


Clean Air, Water and LandEmission Reduction

Zero waste releases and SpillsBiodiversity

DiversityHuman Rights

Community outreachIndigenous Community

Labour Relations

Product to Services

Environmental

stewardshipSocial progress

Sustainability

Socio

Economic

Eco- Efficiency

Socio-

Environmental

Business Ethics

Security

Safety And Health

Environmental Regulations

Global Climate Change

Access to Potable water

Environmental Justice

• Economic– Financial institution requiring Sustainability performance of company

– Increasing power (financial) and declining trust in corporations

– Market demand for clean products and energy

• Environment– Compliance

– Climate Change

Drivers of Sustainability


– Climate Change

– Biodiversity etc.

• Social– Human right

– Child Labor

To address these drivers strong Corporate Governance is required & this is

the main driver for Inclusive Growth.

Sustainability Reporting

Sustainability Reporting helps in benchmarking organizational performance

with respect to laws, norms, codes, compliance standards and many other

voluntary initiatives as well as the vision and mission of the company

What you can’t measure, you can’t manage.

What you can’t manage, you can’t change!


What gets communicated, gets understood!

The Role of Head Sustainability or Head EHS or CSO is very important to

communicate to senior management about the learning of each year from

sustainability reporting and action required by various departments for

Inclusive Growth

Chronos – e-learning

• Sustainability training for Environment and Sustainability staff at

Corporate and other locations as well as to other departments as

discussed for Sustainability Council and Sustainability Committee. This

will be through Chronos, an e learning tutorial on Sustainability

Leadership from University of Cambridge, UK . The cost is given below:


50 Persons £1,500 (£30 per person)

100 Persons £2,000 (£20 per person)

Sustainability Indicators

Economic 9 (Finance)

Environment 30 ( Operations & EHS)

Social 45

• Labor Practice 15 (HR)


• Human Right 11 (HR)

• Society 10 (CSR)

• Product responsibility 9 (Businesses)

High trust

The emerging ‘show me’ world

Trust me

As trust diminishes, the demand for

transparency in the form of assurance

mechanisms increases

Changing demands for Inclusive Growth


Low trust

Low transparency High transparency

Tell me

Show me

Involve me

Why Reporting Sustainability?

• Top Management vision

• Enhances reputation & brand image

• Effective risk management

• Improves operational efficiency and reduces cost

• Increases stakeholder engagement

• Regulates the environment


• Regulates the environment

• High rate of attraction and retention of employees

• Reduces the pressure from NGOs and/or civil society

• New revenue streams

• Responsible supply chain management

For Inclusive Growth

Sustainability

Points to be considered at Corporate:

• Sustainability should be driven from top to bottom

• It should be considered as KPI for incentive / promotion

• It should be embedded as functional role with Manufacturing, HR, CorporateGovernance, Supply Chain, Social Responsibility and other related departments


• Sustainability training should be organized for all levels including Board (assuggested by UNGC) by Corporate Sustainability

• Sustainability Team should organize training on the subject as well as relativeindicators for different departments at Corporate level and incorporateSustainability Reporting

• Related areas such as MDGs, UNGC, CDP, NVGs, BRR, Stakeholderengagement etc. should be also discussed with Sustainability Council andCommittees

Various Corporate Policies

• Corporate Governance & HR

– Prevention of Insider Trading

– Whistle Blower

– Sexual Harassment

– Human Rights

• Sustainability

– Corporate Sustainability

– E – Waste Management


– E – Waste Management

– Energy Conservation

– Corporate Environment

– Responsible Supply Chain

• Health & Safety

• Community Relations

But no policy on Labor Relation, Labor Involvement or Criteria's forimprovements in labor conditions etc.

Socio-Economic Divide

Why this Kollaveri ?


What is hindrance at the bottom of the pyramid?

• Hunger

• Malnutrition

• Employment insecurity

• Poor or non existent social security

• Lack of proper Healthcare facility & support

• Threat of livelihood

Inclusive Growth


• Threat of livelihood

Collective aspirations of the people at the bottom of the pyramid

• Moving out of poverty

• Give their children an opportunity for a better life

• Build up some capital

• Have at least the basic needs of food, shelter & clothing met without thinking

what will happen the next day

� Role of Education

� Importance of healthcare

� Family Planning

� Environment Protection

� Corporate Social Responsibility

Inclusive Growth – Social Sector


� Corporate Social Responsibility

Voluntary Agenda for Inclusive Growth

• United Nations Global Compact – 10 Principles on Human Rights, Labour &Decent Work Practices, Environment & Social

• Millennium Development Goals (MDGs) – 8 Goals of United Nations Hungerand Poverty, Primary Education, Child Mortality & Maternal Health, GenderEquality & Empower Women, Combat Diseases & EnvironmentSustainability


• Stakeholder Engagement

• National Voluntary Guidelines (NVGs)

• Business Responsibility Reporting (BRR)

• Risk & Opportunities from Climate Change

Inequality- The Reasons

• In India too this has increased. However, this is not a story of the richgetting richer and the poor getting poorer. Rather, the rich are gettingricher faster than the poor

• Inequalities in health, education, and economic assets are high & the keyfactor responsible for increases in inequality appears to be unevenness ingrowth

• The interplay between market-oriented reforms, globalization, and


• The interplay between market-oriented reforms, globalization, andtechnology has played a role in unequal growth

• Corresponding to rapid output growth, employment growth has been farlower in recent years

• The differences in real wages between the bottom and top of the laborforce in urban areas increased significantly over the last two decades. At thesame time, rural–urban differentials in real wages have also widened

Inequality Drivers

The main 3 drivers of inequalities are;

1. Inherent by-product of the growth process i.e. and knee-jerk reactions to

eliminate increases in inequalities may stifle the growth process itself

2. Lack of access to basic public services such as credit, and risk-mitigating

instruments perpetuate the lack of capabilities and opportunities for large

sections of society


sections of society

3. The marginalization and bypassing of significant sections of society could

undermine the sustainability of growth

In fact, Inequality is an outcome of the above drivers, and how it should be

addressed must begin with identifying the drivers of inequality within the

organization through sustainability reporting to attain Inclusive growth

Inclusive Growth: A Strategy

The 3 pillars for Inclusive Growth are;

1. Creating opportunities

– Equalizing opportunities means that the opportunities generated by

growth are available and shared across the entire spectrum of the

community

2. Ensuring equal access


2. Ensuring equal access

– Equalizing access of economic opportunities to the community in the

vicinity and enable individuals to qualify for productive and decent

employment

3. Social protection

– Livelihood generation, better medical facilities, Good Primary Education

etc.

Inclusivity for Sustainable Growth – A Reality

• While high and sustainable growth are absolute requirements, the fruits of

growth must be shared more equally

• The thrust of inclusive growth is on the positive, emphasizing expanding

opportunities and capability enhancement . The directional change is from

entitlement to empowerment


• Public policy interventions to be in place to guarantee an even playing field

so that people can be empowered to lift themselves up to exploit the

opportunities generated by rapid and sustained growth

• Reforms relating to governance, institutions, and policies that address both

economic and political inequality will need to be addressed simultaneously


Website: www.tatapower.com

Email ID: [email protected]

Contact No: +91 22 6717 1668

Inclusive Growth – Is Sustainability the Answer ? | Dr. Yogendra Saxena, Tata Power

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