The document discusses the importance of businesses operating responsibly in the current complex global environment. It outlines several major sustainability issues facing the world, including climate change, resource scarcity, and population growth. The effects of climate change, like rising temperatures and more extreme weather events, are already occurring. The document advocates for low-carbon growth and highlights actions India is taking on sustainable development, like emissions reduction targets. It provides examples of sustainability initiatives by Bombay Chamber of Commerce member Larsen & Toubro, such as reducing their carbon footprint, using renewable energy, and investing in social programs around education, healthcare, and skill-building.

1. Doing Business Responsibly
Bombay Chamber of Commerce
10th May 2013

2. Complex Business Environment
2
Globalization
Digital
Connectivity
Accelerated
Consumption
Disparate
Prosperity
Ecological Decline
Resource Scarcity
Lack of Global
Governance

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

6. What is this?

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

23. Chennai
Talegaon
Ahmednagar
Hazira
23
1.2
million
sq. ft.
of
Green
Building
space
Green and BEE Star rated Buildings
BEE Star
rated
buildings

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

28. L&T’s Sustainability Initiatives
28

29. Sustainability – Environment Performance

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.

33. Thank You