Sustainable Management

Practices
Richa Chaturvedi
 Sustainability and its Significance

• Sustainability is defined as meeting the needs of the present without

compromising the ability of future generations to meet their own needs
(UN World Commission on Environment and Development, 1987).
• Sustainability is the balance between the environment, equity, and
economy.
• Sustainable practices support ecological, human, and economic health
and vitality.
• Sustainability is important for preserving our planet and natural resources
like water and air.
• Building a sustainable future and cultivating sustainable ways of living will
reduce pollution and protect habitats of plants and animals.
Three Principles of Sustainability
 Environmental Sustainability

• Environmental Sustainability:
This principle entails the
responsible use of natural
resources, reducing waste
and pollution, and conserving
biodiversity.
• It revolves around preserving
and nurturing the health of
our planet.
 Social Sustainability
• Social sustainability is about identifying and
managing business impacts, both positive
and negative, on people.
• Directly or indirectly, companies affect what
happens to employees, workers in the value
chain, customers and local communities,
and it is important to manage impacts
proactively.
• While it is the primary duty of governments
to protect, respect, fulfil and progressively
realize human rights, businesses can, and
should, do their part.
 Economic Sustainability
• Economic sustainability refers to practices • How to achieve Economic Sustainability?
that support long-term economic growth • Focus on reducing environmental
without negatively impacting social, effects – no economic sustainability
at the cost of environmental
environmental, and cultural aspects of the sustainability
community. • Restrained usage of natural capital
• Importance of Economic Sustainability • Set firm financial goals
• Longevity of the global economy • Focus on team members
• Preservation of human life • Work with other businesses and
organizations
• Unrealized discoveries
These principles guide us in creating a balanced and
sustainable future for our planet and its inhabitants
A Brief History of Sustainability
• It’s said that the concept of sustainability began during the industrial
revolution. And it’s true that CO2 and greenhouse gas emissions were far
lower before that era.
• During the 1950s, environmental groups warned about the consequences
of plastics, chemicals, synthetics, pesticides, and fossil fuels.
• In 1952 air pollution incident in London that killed 12,000 people. It
wasn’t until then that the issue was taken more seriously.
• Through the 1970s, the movement accelerated globally. April 22nd, 1970
brought the first Earth Day.
• In 1987, the ‘Our Common Future’ report by the UN Brundtland
Commission was published. In it is one of the most regarded, simplified
definitions in the sustainability movement.
Continue…
A Brief History of Sustainability

• On June 23, 1988, global warming became recognized on a wider scale after
a NASA scientist testified to the world that the climate was changing.
• By the 1990s, sustainability had also become a familiar term in the world of
policy jargon.
• In 1997, the UNFCCC put forward the first treaty for countries to limit their
greenhouse gases – the Kyoto Protocol.
• In 2015, nearly every country signed the Paris Agreement, a legally-binding
successor to the Kyoto Protocol, to try and limit global warming to 1.5°C.
• The Sustainable Development Goals (SDGs), also known as the Global Goals,
were adopted by the United Nations in 2015.
• The SDGs offer a vision of a fair, prosperous, peaceful and sustainable world.
The Triple Bottom Approach
• The general goal of a sustainable
business strategy is to positively impact
the environment, society, or both, while
also benefiting shareholders.
• One common way to understand a
business’s sustainability efforts is using a
concept known as the triple bottom line.
• The triple bottom line (TBL) is a
sustainability framework that revolves
around the three P’s: people, planet and
profit.
• Historically, businesses operated in
service solely to their financial bottom
line.
Source: Harvard Business School
Facts about Triple Bottom Line
• In 1994, author and entrepreneur, John Elkington, introduced
the concept of the triple bottom line (TBL) with hopes of
transforming the financial accounting-focused business system
to a comprehensive approach that measures impact and success.
• It is a transformation framework to help businesses and organizations move toward a
regenerative and more sustainable future.
• TBL offers tools that help an organization measure, benchmark, set goals, and
eventually evolve toward more sustainable systems and models.
• It illustrates that if an organization is only focused on profit, while ignoring people
and the planet, it cannot account for the full cost of doing business and thus will not
succeed long term.
Sustainability Frameworks & Standards Stakeholder
engagement

• Sustainability frameworks and standards

are set rules and specifications that offer a Transparency
Continual
improvement
planned strategy for tackling
environmental, social, and economic Key
problems sustainably. considerations
in assessing
• They act as a point of reference for sustainability
businesses looking to evaluate and frameworks
enhance their sustainability performance. Relevance
Measur-
ability
• These frameworks frequently cover a wide
range of subjects, including supply chain
sustainability, social equality, labour rights, Credibility
and greenhouse gas emissions.
Sustainability Frameworks
• Sustainability Frameworks are Strategic Guidelines that tell you how
to approach sustainability.
• It defines the vision and strategy, sustainability goals and objectives,
and key performance indicators (KPIs).
• Sustainability frameworks have become common practice among
organizations aiming at disclosing their contribution to sustainable
development and enhancing credibility with stakeholders.
• Sustainability frameworks aid companies in selecting and
implementing sustainability initiatives by developing and applying a
sustainability strategy to achieve, among others, competitive
advantage and leverage efficient business operations.
Sustainability Frameworks
• Moreover, numerous research (CFA Institute, IFC, PRI and ICGN etc.)
showcase that investors are not only interested in the financial
performance of organizations, but also in their social and
environmental impacts and sustainability frameworks have been
developed to help organizations manage these issues and
consequently attract investments.
• Example: United Nations Sustainable Development Goals
Global Reporting Initiatives (GRI)
• The Global Reporting Initiative (GRI) is an independent
international organization that has pioneered sustainability
reporting since 1997.
• The GRI is the most widely used framework for sustainability
reporting and the 2017 KPMG survey on Corporate Responsibility
Reporting revealed that 75% of the G250 and 63% of the N100
who report are using GRI’s framework.
• The GRI standards are designed to help organizations
communicate their impacts on the society, environment and
economy.
Note: N100 are the 100 largest companies in 41 countries, while G250
comprises the top 250 companies listed in the Fortune Global 500 ranking
United Nations Sustainable Development Goals
United Nations Sustainable Development Goals

• SDGs refer to the initiative passed by the United Nations in 2015

and present the foundation of 2030 Agenda.
• The SDGs framework comprises 17 specific goals and is aimed to
end poverty, protect the planet and ensure prosperity for all by
2030.
• These 17 Goals follow and build on the Millennium Development
Goals, while including new areas such as climate change,
economic inequality, innovation, sustainable consumption,
peace and justice, among other priorities.
• The SDGs provide a great source of inspiration in setting internal
goals and strategies.
 Example of a Company Sustainability Policy
• ABC Company recognizes that businesses can negatively impact the environment.
• They are committed to and enjoy finding ways to reduce the impact of their work both in the
office and when work takes them away from the office.
• Their policy measures read like this:
• Recycle as much waste material as possible.
• Avoid the use of paper wherever possible. For example, invoices and quotes can be emailed as PDF files.
• Recycling equipment that is no longer of use to the company. E.g.: giving away items such as computers and
printers that we no longer use.
• Keep energy usage low. E.g.: use low-energy light bulbs & ensure that computers are shut down after work.
• Reuse waste paper (from the printer) where possible, using the blank side for notes, etc.
• Purchase products made with recycled paper. For example, paper towels, printer paper.
• Purchase products with a lower environmental impact—for example, environmentally safe soaps and detergents.
• Use low-impact transport for travel to and from work and travel for business. E.g.: we use public transport to attend
meetings and offer a Cycle Scheme to encourage staff to cycle to work or to carpool.
• Avoid unnecessary travel using instant messaging, video and audio conferencing, telephone, and email.
 Environmental, Social and Governance
• Environmental, social and governance (ESG) is a framework used to
assess an organization's business practices and performance on various
sustainability and ethical issues.
• It also provides a way to measure business risks and opportunities in
those areas.
• In capital markets, some investors use ESG criteria to evaluate
companies and help determine their investment plans, a practice known
as ESG investing.
• While sustainability, ethics and corporate governance are generally
considered to be non-financial performance indicators, the role of an
ESG program is to ensure accountability and the implementation of
systems and processes to manage a company's impact, such as its carbon
footprint and how it treats employees, suppliers and other stakeholders.
Environmental, Social and Governance
5 Widely Used Sustainability Frameworks and
Standards

United Nations
Global Carbon
Sustainable
Reporting Disclosure
Development
Initiative (GRI) Project (CDP)
Goals (SDGs)

ISO 14001 Sustainable

Environmental Accounting
Management Standards
System Board (SASB)
Sustainability Policies

• With the green movement in full swing, many companies have

put together a Sustainability Policy to show how they are doing
their part in making sustainability a core mission within their
organization.
• You may see a sustainability policy on a company’s website.
Thank You!