Dissector A BGyan Initiative

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Sustainability is typically associated with the effective use of natural resources and its effect on
profitability. However, sustainability as a core strategy extends well beyond energy-efficiency, green investing
and reducing CO2 emissions. Sustainability in the banking sector is also about how we design, build and
execute our banking businesses for the long run, i.e., taking a holistic view of resources. In this light, there
are six Cs of sustainable banking: clients, culture, compliance, compensation, costs and capital.
The Six Cs of Sustainable Banking
Clients
Clients are wary, savvy and decreasing in their loyalty because they feel that their needs are not being
fully met, and at prices they do not deem fair. Client delight should be the core focus of every sustainability
plan.
Culture
Banks are so busy taking care of all the other issues, they run the risk of forgetting how all the changes
are effecting and affecting culture. Bank culture has been crippled due to a loss of reputation it desperately
needs to be regained.
Compliance
The rules of the game have changed. Compliance simply allows banks to stay in business. Creation of a
deep compliance culture is a critical component of a sustainable banking business.
Compensation
The Holy Grail of banking is compensation. It is the last bastion of the legacy. Its about to fall. As difficult
as it will be, banks must focus on decreasing compensation in order to ensure their long-term survival and
success.
Costs
Banks are undertaking massive cost-cutting, efficiency-enhancing exercises to various degrees of
success. This is about good management, not great leadership; but definitely a core sustainability
characteristic.
Capital
Capital requirements are increasing leaving less room for banks to be innovative. The pressure to
increase real equity levels is increasing. Having enough real equity levels provides the base for investing in
long term sustainability.

Sustainability Banking Structure

Join the B-Gyan Facebook Page at
www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Carbon Disclosure Project (CDP)
Indian administers annual questionnaires to major companies and related entities on behalf of 655
signatory investors and asset managers who are responsible for the management and investment of US
DOLLARS 78 trillion, in order to highlight the emerging fiduciary and other risk of climate change. It requires
public disclosure of (GHG) Emission and other GHG management and reduction practices and strategies for
customers, thought leaders in their investment and policy decisions. Responses to the CDP disclosures are
ranked and score by an authorized third party, such as PWC, E&Y, KPMG, NEXT GEN AND IBM, and key
trends are reported in their reports. It has been active in India since 2008 with the help of our partners, CIIITC centre for Excellence for sustainable development and WWF India.

Main Drivers for employing Environmental and sustainable issues

Environmental and social pressure from society

Improved brand reputation,

Opportunities for innovation

Improved stakeholder relations

Preparedness for future compliance requirements in order of majority

How to Create a Sustainable Compliance Culture

First, change what people do, how they behave, not how they think. Culture will change as a result. The
traditional method of trying to get everyone to think the right way and then act accordingly does not work
especially if the reasons for the change are not deemed legitimate. It is easier to act your way to a new way
of thinking than to think your way to a new way of acting.
In order to create a sustainable, successful compliance culture where staff are encouraged to find
problems and make improvements, banks have the obligation to provide the means to do so by providing
their people with the right work processes, systems, governance, and especially, leadership. If there are
issues preventing staff to do their job, team heads and compliance officers should be in a position to support,
not punish them. Such enabling encourages people to improve quality and be engaged in problem solving
and making improvements. The way management treats problems reflects the corporate and compliance
culture. If compliance is seen as the enemy, you are lost. Changing behaviour to change thinking leads
naturally to a change in values, attitude and ultimately in culture. This is a critical component of sustainable
banking.
To put it in clear and simple terms. Banks need to make their work and processes:

Difficult to make a mistake;

Simple to identify problems and to know when a mistake has occurred;

Easy in the regular course of working to notify a manager or compliance officer of the mistake or problem,
so that he can quickly determine what to do about it and does it.

Banks need to communicate clearly to employees what their jobs are. Provide regular training to enable
them to perform successfully. Build the carrot and the stick into the process. Build in quality
improvement by empowering your people to expose issues, mistakes and errors. Ask why these happen,
not who is responsible. Call attention to the problem to solve it, or to the behaviour to change it.

Design the business to make it simpler. Make it simpler to do and simpler to see problems, simple to
resolve problems and simple to learn from mistakes. If we can make it simple to learn from our mistakes,
this means changing our attitude toward them. Explain and show how doing the right thing for clients
means doing the right thing for yourself.

Finally, pay accordingly!!!!!

This is the crux of cultural change..

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

The following five trends foreshadow how safety managers must be prepared to respond with the most
safety-conscious solutions in the coming year

Trend #1: Coping with Greater Workloads

Safety managers must raise multitasking to an art form: simultaneously responding to upper
management, inspiring employees and ensuring compliance with regulators while also juggling
recordkeeping responsibilities, procuring safety products and handling other administrative duties, all across
a wide array of safety categories and concerns.
A few of these areas safety managers must address include:
In the fall protection category, where workers risk being injured or dying from falls on the job, incident
rates continue to increase worldwide. Many managers are stepping up their fall protection efforts. They're
conducting internal audits of basics, improving training methods and generally raising awareness and
prevention efforts among workers.
When it comes to hearing protection, the numbers tell a more complicated story. In many western
countries, worker compensation claims for job-related hearing losses actually are declining owing to the
economic downturn and the fewer overall number of workers on the job.
In categories such as respiratory and vision protection, accident rates generally are holding steady or
slightly declining in mature industrial cultures, where attention from safety professionals and improvements
in personal protective equipment (PPE) technologies have paid off.

Trend #2: Creating a Culture of Safety

Perhaps the most significant workplace safety trend of the year, if not the decade, is the increasing
acceptance by safety managers in multiple industries of the concept of a culture of safety. These managers
are leading their people to safety by inspiring workers to change behaviours and make safer choices on their
own.
One major effort in this area surrounds involving more employees in safety activities. Ideally, all workers
systematically are trained to understand the ramifications of wearing and using appropriate safety equipment,
ensuring their own protection and looking out for the safety of their co-workers.
This is reflected in an ever-growing emphasis on behaviour-based initiatives. For instance, managers in
the construction industry favour the buddy system approach: assigned pairs of employees are responsible
for each other's PPE fit checks, proper use and, in a simple sense, look out for each other's safety.
Another popular initiative utilizes peer meetings or toolbox talks. Here, to foster employee safety
consciousness, the safety manager attends meetings routinely held in many organizations at the start of a
shift. The manager takes the opportunity to brief the team on topics such as newly available safety equipment,
upcoming regulations or adjustments to safety processes necessitated by a change in the physical plant.
Creating a culture of safety is a cooperative venture. A safety manager requires executive leadership and
employee ownership of program goals.

Trend #3: Managing Safety across Borders

As companies around the world consolidate, managers might assume responsibility for facilities in a range
of disparate countries besides their own. These safety managers report that their biggest challenges in the
coming year will be keeping up with regional occupational safety regulations, language barriers, cultural
differences and consistent, standardized implementation of safety management systems.
While safety regulations may differ from country to country, trends do emerge. For respiratory
safety, mandatory fit testing (already implemented in the United States and Canada) is increasingly being
adopted by European regulators. The U.K. has regulations in place, Germany has initiated its regulatory
process and neighbouring countries soon should follow suit. Safety managers need to source respirators that
offer fit-adjustable face piece technology and other fit/comfort advantages.
In emerging markets, as countries such as Brazil, China and India outpace the rest of the world in growing
their manufacturing economies, they're adopting new safety standards, increasing enforcement of standards
already in place and elevating workplace safety consciousness.
Broadly speaking, managers in these countries are devoting more effort and budget to strengthening their
safety systems and upgrading workers' PPE.

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Trend #4: Selecting the Right Safety Sources
Safety managers collect and reference information from professional groups, government sources and
the Internet. But when seeking useful information, whether online or via another method, managers must
consider the source.
Government agencies can provide regulatory compliance information on workplace safety issues since
they formulate regulations and track statistical trends across many industries. But such sites may tend to
overuse complicated, legalistic language.
Social media venues can deliver timely, up-to-the minute safety information. For instance, active
discussion groups on LinkedIn serve as popular places for professionals to exchange views on specific safety
hazards, procedures and solutions. Safety information delivery via social media will gather increasing
momentum in the foreseeable future.

Trend #5: Gaining C-Level Attention

Finally, the coming year is likely to see upper management pay increasing attention to safety and its
benefits. CEOs and other leaders of some larger companies publicly are emphasizing their organizations'
good safety records and ongoing safety programs. They also are identifying measurable increases in safety
as important goals for all employees. At least a few companies have appointed safety officers at the corporate
level (C-level), where their visibility and authority can have major impact in establishing a culture of safety
across the organization. While these are not yet universal trends, any support from the executive suite is a
hopeful sign for safety managers.
Developing an awareness and understanding of these trends in the coming year and beyond will help
safety managers do what they do best protect the health, safety and well-being of their workers.

Sustainable Manufacturing
Sustainable manufacturing helps companies to save money, enhance competitiveness, and reduce
environmental, health, and safety impacts. According to a recent survey, two-thirds of nearly 3,000 company
officials surveyed responded that sustainability was critically important to being competitive in todays
marketplace." In addition, as an indication of company sustainability initiatives and stakeholder interest, 93
of the S&P 100 companies reported sustainability information on their websites in 2008.
Key Benefits from Sustainable Manufacturing

Lower Resource and Production Costs

Lower Regulatory Compliance Costs

Improved Sales and Brand Recognition

Greater Access to Financing and Capital

Easier Employee Hiring and Retention

There a number of reasons why companies are pursuing sustainability:

Increase operational efficiency by reducing costs and waste

Respond to or reach new customers and increase competitive advantage

Protect and strengthen brand and reputation and build public trust

Build long-term business viability and success

Respond to regulatory constraints and opportunities

Companies engaged in sustainability efforts include those of all sizes, ages, and sectors. Companies
move forward along the path to sustainability by improving performance and reducing their resource footprint.
Ways that companies progress further on the path to sustainability include:

Address sustainability in a coordinated, integrated, and formal manner, rather than in an ad hoc,
unconnected, and informal manner

Focus on increased competitiveness and revenues rather than primarily focusing on cost-cutting,
risk reduction, and improved efficiency

Use innovation, scenario planning, and strategic analysis to go beyond compliance

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Integrate sustainability across business functions

Focus more on the longer-term

Work collaboratively with external stakeholders

E waste
What happens after the good are manufactured, yes we all know it is used till it becomes obsolete. The
problem starts after that as the used ones are threw which results in the generation of E waste.
Electronic waste (e-waste) comprises waste electronics/electrical goods that are not fit for their originally
intended use or have reached their end of life. This may include items such as computers, servers,
mainframes, monitors, CDs, printers, scanners, copiers, calculators, fax machines, battery cells, cellular
phones, transceivers, TVs, medical apparatus and electronic components besides white goods such as
refrigerators and air-conditioners

Dynamics of e-waste generation

Telecommunications and information technology are the fastest growing industries today not only in India
but world over. Manufacturers Association for Information Technology (MAIT) has collected the following
statistics on the growth of electronics and IT equipment in India

PC sales are growing by 16% and more. There is an installed base of over 25 million units

The consumer electronics market is growing @ 13-15 % annually. It has an installed base of 120
million TVs

The cellular subscriber base was up by 96.86% 2007-08. Its installed base is estimated to cross 300
million mark by 2010

As per a GTZ-MAIT sponsored study conducted recently by IMRB, e-waste generated in India during
2007 was around 332,979 MT besides about 50,000 MT entering the country by way of imports. The reasons
for generation of this large quantity of e-waste were unprecedented growth of the IT industry during the last
decade, and the early product obsolescence due to continuous innovation. Thus the net effect is the e-waste
turning into a fastest growing waste stream.
However, the total e-waste avail-able in 2007 for recycling and re-furbishing was 144,143 MT. Of this,
only 19,000 MT of e-waste could be processed.

Components of e-waste management

The major components of e-waste management are:

E waste collection, sorting and transportation

E waste recycling; it involves dismantling, recovery of valuable resource, sale of dismantled parts
and export of processed waste for precious metal recovery

E waste concerns and challenges

Accurate figures not available for rapidly increasing e-waste volumesgenerated domestically and
by imports

Low level of awareness among manufacturers and consumers of the hazards of incorrect e-waste
disposal

No accurate estimates of the quantity of e-waste generated and recycled available in India

Major portion of e-waste is processed by the informal (unorganised) sector using rudimentary
techniques such as acid leaching and open-air burning, which results in severe environmental
damage

E-waste workers have little or no knowledge of toxins in e-waste and are exposed to health hazards

High-risk backyard recycling operations impact vulnerable social groups like women, children and
immigrant labourers

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Inefficient recycling processes result in substantial losses of material value and resources

Cherry-picking by recyclers who recover precious metals (gold, platinum, silver, copper etc.,) and
improperly dispose of the rest, posing environmental hazards

Trends in Sustainability Reporting in India

Indian companies have been reporting on sustainability since 2001 by using the GRI Framework,
following the Carbon Disclosure Project (CDP) or completing the UN Global Compact s Communication
of Progress (CoP). The process of evolution for most companies has been to initiate the reporting process
under the CDP or the UNGC CoP ,and later progress into reporting under the GRI Framework, which
is based on both principles and standard disclosures, including performance indicators. However, a small
number of companies report under all the three reporting norms. The number of companies reporting on
sustainability has been increasing but is still relatively small as compared to the total number of
companies that are publicly traded in India.

GRI Time line

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Policy and Legislative Initiatives

Information Technology
Information Technology (IT) has also emerged as one of the leaders in reporting though it is traditionally
recognised to be a less polluting industry. This high adoption rate could be because most Indian IT
companies adopt a service model for outsourced/offshore activities and adopt a global business model
spreading across geographies with a significant customer base in the developed economies. It is believed
that investors and customers in these economies would be more likely to base their decision of
investment/business relations on sustainability parameters in addition to other financial and operational
issues.

Sustainability performance and project management (SPPM) software

For executive roles. Improving understanding corporate sustainability performance and racking progress
of sustainability projects. Example providers include Metric Stream and SAP.

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Enterprise carbon and energy management (ECEM) software

For executive and operational roles. Monitoring, managing, and reporting corporate carbon footprint and
resource consumption. Example vendors are CA, Enablon, Enviance, ENXSuite, Hara, SAP, Verisae and
others.

Sustainable product development software

For R&D and product management roles. Improving the design and development of greener products.
Example vendors are Autodesk, PTC, and Siemens.

Collaboration and communications systems

For information workers, IT, and HR roles. Helping reduce travel and improve workforce efficiency by
using collaboration and communications technologies. Example vendors are Cisco, Microsoft, Google, and
IBM.

Smart infrastructure management software

For facilities, operations, and building management roles. Software helping manage smart infrastructure
and improving utilization of hard assets such as buildings and vehicles. Example vendors are GE, IBM,
Ingersoll Rand, Johnson Controls, Schneider Electric, and Siemens.

Trends in the Biotechnology, Pharmaceutical, and Medical Device Industry

The Global Harmonization System (GHS) in the United States will become a reality.

Criminal enforcement of occupational, health and safety regulations will be on the rise.

The International Society of Pharmaceutical Engineers (ISPE) will issue its revised Good Practice
Guide on Assessing the Particle Containment Performance of Pharmaceutical Equipment.

Skilled Environmental, Health and Safety (EHS) professionals will be increasingly difficult to find.

OSHA and other regulatory agencies become more social.

Google+ Hangouts will see increased application in the environmental, health and safety profession.

The merging of occupational health and wellness programs.

Growth of continuous bio-sensing for occupational health.

Remote EHS training and webinars will see continued growth.

Nanotechnology will see continued interest.

7 Things every EHS person in a pharmaceutical organization should know

Just because an active pharmaceutical ingredient doesnt have an exposure limit, doesnt make it
non-hazardous

Review your potent compounds on an ongoing basis

Overly conservative occupational exposure limits and control banding assignments costs money

Total dust methods are a waste of time for determining airborne concentrations of potent compounds

With some potent compounds, protection factors of the respiratory protection can be exceeded

No containment device, including isolators, offer 100% containment

Risk assessments need to be conducted

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

There are 3 major practices that FMCG firms in India can utilize to realize the sustainability advantage:
1.

Green Energy Sourcing

2.

Product and Service labeling

3. Packaging Material
An analysis of these options from the perspective of the 4 major stakeholders of FMCG firms the
Government, the Investors, Retailers & Consumers, and NGOs is as follows:

Green energy sourcing

Sourcing energy from renewable sources (Wind and Solar) has the potential to reduce the energy costs
of FMCG majors in India by up to 90% and carbon foot-print by 85% depending on the location and the
availability of power evacuation infrastructure near the factories, warehouses or installations. One of the
major policies formulated by the Government to incentivize greening of energy sources by the industry was
the Accelerated Depreciation and Generation Based Incentives offered. Apart from meeting the strategic cost
management targets, these schemes have served as alternate sources of revenue for FMCG majors. This
led to a massive increase (21% over 2010-12) in the percentage of energy sourced by FMCG majors from
green energy. HUL and ITC spearheaded this growth.
However, with the replacement of the generation based incentive regime by the Renewable energy
certificates mechanism, a slow-down in the rate of installation of the green-energy capacity has been
observed.
Another major opportunity that the FMCG firms can leverage is the sustainability certification system.
Various green certifications like ISO 14001 and Leeds Green Building/Factory are opportunities for
differentiation. These certifications have gained special relevance given the rising consumer awareness and
sensitivity to environmental issues.

Product and Service labeling

Benchmarking production processes and services to best sustainability practices
is increasingly emerging as another major differentiation. The eco-label, green-seal
and eco-logo stamps are being deployed on offerings to differentiate them from
competition offerings. In India, this concept has gained traction recently with the
development of the Eco mark scheme by the Central Pollution Control Board
(Ministry of Environment and Forests). The major driver of the Eco mark scheme is
the reduction of environmental and health hazards due to industrialization. Signaling
through accreditation encourages aware consumers make informed decisions and
can thus be leveraged by FMCG firms.

Differentiating eco-product marks in-use around the world

Join the B-Gyan Facebook Page at
www.facebook.com/bgyan.nitie

NITIE

Dissector A BGyan Initiative

Packaging Material
Innovative sustainable packaging is another thrust area for the FMCG industry. Given the increasing
cost and environmental ramifications of conventional packaging solutions (in spite of recycling and
reusing), FMCG firms are increasingly evaluating biodegradable options for packaging. The use of
biodegradable films and paper-centric packaging solutions has witnessed a tremendous (160%) rise during
2009-2012.
Innovative methods of utilizing non-biodegradable waste are also an opportunity that the FMCG sector
is undertaking. A case-in-point in this regard is the initiative by a Canadian firm Teracycle, which converts
cigarette butts into plastic skillets and containers.
With increasing levels of consumer awareness and government regulations, sustainability is gradually
transforming from being a differentiator, into a primary business driver. Major FMCG firms must capitalize
on the first mover advantages and establish themselves as industry leaders in this space.

Join the B-Gyan Facebook Page at

www.facebook.com/bgyan.nitie

NITIE