Sustainable Management Practices@Bridge Course.PDF

Sustainable Management Practices Bridge Course (Part of Contemporary Management Practices) Richa Chaturvedi  Sustainability and its Significance Sustainability is defined as meeting the needs of the present without compromising th...

Sustainable Management Practices Bridge Course (Part of Contemporary 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 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  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. 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 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.  Sustainable Development Goals https://www.youtube.com/watch?v=0XTBYMfZyrM https://www.youtube.com/watch?v=vhni5PVlaIg  Sustainable Business Practices Sustainable business practices are becoming increasingly important in India as businesses recognize the need to balance economic growth with environmental stewardship and social responsibility. Some of the key sustainable business practices becoming prevalent in India are as follows: Corporate Social Responsibility (CSR) Environmental Sustainability Ethical Sourcing and Fair Trade Social Impact Investing Circular Economy Initiatives Sustainable Innovation and Entrepreneurship Policy Advocacy and Stakeholder Engagement Circular Economy The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. In practice, it implies reducing waste to a minimum. Circular Economy When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value. This is a departure from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern. This model relies on large quantities of cheap, easily accessible materials and energy.  Planned Obsolescence Planned obsolescence leads to an increase in the disposal of still functional products, which results in a waste of natural and energy resources used in their production. When products are designed to fail prematurely, consumers are often forced to replace them even when there is no real need, generating an unnecessary buildup of waste. In addition, planned obsolescence impairs the ability to repair and extend the useful life of products. By being forced to purchase new products frequently, they have a higher long- term cost and may struggle financially to keep up with the demand for replacements. This creates a cycle of consumption that prioritizes corporate profit over the economic well-being of individuals. Circular Economy versus Planned Obsolescence Planned obsolescence, that is, the practice of designing products with a limited useful life, can be considered a villain of the circular economy. The circular economy seeks to minimize waste and promote sustainability through reuse, recycling and consumption reduction. However, planned obsolescence goes against these principles by encouraging the constant replacement of products, generating an unsustainable consumption cycle. Thank You!