This document introduces the Indian Responsible Competitiveness Index, which aims to award the most responsibly competitive companies in India. It discusses how sustainable development challenges like climate change, water scarcity, and food security present both risks and business opportunities. The concept of Responsible Competitiveness is introduced as an enterprise-wide approach to managing these issues to enhance business performance through innovation, cost reduction, reputation, revenue, and risk mitigation. The index will rate and benchmark companies across industries in India on their responsible competitiveness.
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Presentation by Sunil Misser
1. The Indian Responsible Competitiveness™
Index: An Award for the Most Responsibly
Competitive Companies in India
Sunil A. Misser, Chief Executive Officer
December, 2010
www.AccountAbility.org
2. • The Game has Changed
• Responsible Competitiveness™
• The Indian Responsible Competitiveness Index
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Table of Contents
3. The Game has Changed
Climate Change
Energy
Food Security
Poverty
Biodiversity
Conservation
Access to
Health
Access to
Technology
Water
The
Company
The Challenges of Sustainable Development Increasingly Affect the
Ability of Companies to Remain Sustainably Competitive
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4. The Game has Changed
Climate Change:
ØThreatens the livelihoods of 2 billion small-scale farmers
ØRequires USD $1.5 trillion/year in climate proofing for
power and water industries
ØWill cause millions to suffer from tropical diseases &
infections
Water Scarcity:
ØBy 2030 the world will face a 40% deficit between fresh
water supply and demand
ØBy 2020 two billion will lack access to clean, fresh water
Ø1.6 billion already have difficulty paying for fresh water
Food Security:
Ø We require productivity breakthroughs to feed a global
population of 9 billion by 2050
Ø New food price increases are forecast due to climate
impacts, biofuel competition, and land speculation
Ø Major global brands (Mars, Nestle, Unilever) are
committing to source certified sustainable commodities
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5. The Game has Changed
Climate Change
Energy
Food Security
Poverty
Biodiversity
Conservation
Access to
Health
Access to
Technology
Water
The
Compan
y
The Challenges of Sustainable Development Increasingly Affect the
Ability of Companies to Remain Sustainably Competitive
For forward-thinking, strategic, and
responsible organizations, these
challenges represent Business
Opportunities
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6. Sustainable Development Business
Opportunities
Industry
Sector
Game-changing
Challenge
Potential Game-changing Solution
Agriculture Depletion of water
•Waste & use
•Purification
•Industrial Pricing
Health care Lack of access
•Low-margin/high volume sales
•Enhance the health value chain
•R&D partnerships
Telecommunications Communications for
development
•Expand access
•Vital services on mobile devices
•Support free speech
Housing Affordable Housing
•Low-cost design
•Low carbon, low energy materials
•Residents generate energy for the grid
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7. Sustainable Development Business
Opportunities
Industry
Sector
Game-changing
Challenge
Potential Game-changing Solution
Infrastructure
Green Design;
Community “Right of
Way”
•Use of recycled materials
•Strategic stakeholder engagement
•Low-energy design solutions
Transportation Road safety; Access to
Mobility; Low-carbon
•“Driver-literacy”
•Low-cost, low carbon transport solutions
•Energy efficient vehicles
Financial Services Access to finance;
Responsible Banking
•Mobile Banking & Financial Literacy
•Investing in Responsibly Competitive firms
•Investing in low-carbon growth
Consumer Goods Emerging consumer
interest in sustainable
development
•Create opportunities for low-income
individuals in value chains
•Source from certified producers
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8. About AccountAbility
Our mission is to help our clients and members improve business
performance and build sustainable, competitive advantage.
BEIJING LONDON JOHANNESBURG
NEW YORK SAO PAULO WASHINGTON D.C.
10. Responsible Competitiveness™
RESPONSIBLE COMPETITIVENESS™ is the
enterprise-wide approach to managing environmental,
social, economic and governance issues. The
Responsible Competitiveness approach builds
sustainable competitive performance through
measurable, transparent, and accountable commitments
to employ renewable resources and to improve the well-
being of workers, communities, and ecosystems.
* Responsible Competitiveness™ is a trade mark registered to AccountAbility Strategies, no. 2521826
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11. Responsible Competitiveness™
Philips is building a $500 million solar lighting business for
low-income communities in Africa
Over a 10-year period, Dow realized $7 billion in savings
thanks to a $1 billion investment to reduce energy
consumption and improve efficiency.
In an effort to address a social need, Verizon “Coupe”
phone, created specifically for the disabled and elderly,
sold 400,000 units at its launch and remained on
backorder for months.
Nestle’s “Creating Shared Value” strategy connects the
company directly with farmers and agricultural
communities—this helps avoid sharp price changes and
meet consumer demand.
General Electric’s ecomagination generated $70 billion in
revenue in its first 5 years, thanks to an initial $5 billion
investment.
In 2007, Nike released a landmark CR report that
committed to bringing systemic change for workers’ rights
throughout its supply chain. The financial markets reacted
positively and Nike moved from the 70th percentile to
the mid 90th percentile on the Steel City Re Reputation
(IA) Index.
Reputation
Revenue
Enhanced
Business
Performance
Innovation
Cost
Reduction
Risk
Mitigation
Responsible Competitiveness™ enhances Business Performance in
five key areas.
12. The Responsible Competitiveness approach builds on seven years of AccountAbility
research analyzing the social, environmental and governance performance of companies,
including:
• Accountability Rating™ -- Fortune
• Climate Competitiveness Index 2010
• Saudi Responsible Competitiveness Index
• Responsible Competitiveness Index™
• Annual survey of CSR perceptions in China -- Fortune China
Responsible Competitiveness™
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13. Responsible Competitiveness™
“Success in tomorrow’s markets means working with stakeholders to understand,
predict, and shape our future environment and ways of living. Tackling important
problems together will require teamwork and respect. Transparency and
accountability will be more important than ever.”
Jeffrey Immelt
Chief Executive Officer
The General Electric Company
“Our collective challenge and opportunity is to
promote responsible competitiveness
between companies, communities, and
nations that advances economic development
in balance with social and environmental
imperatives.”
Fredrik Reinfeldt
Prime Minister
Sweden
“The essence of responsible
competitiveness is value creation”
Carlos Ghosn
Chief Executive Officer
Nissan
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16. Stages of CR Development
Game Changing
Integrating
Conforming
Early-Stage
Companies
STARTERS
Emerging
Leaders
ASSERTERS
Pioneers
INNOVATORS
17. The Indian Responsible
Competitiveness™ Index
An Award for the Most Responsibly Competitive™ companies in India
üDelivered in partnership
by AccountAbility and
the Institute for
Competitiveness
üCountry-wide, cross-
industry
üAward for the most
Responsibly
Competitive companies
üPromoted through a
national media partner
and an Award
Ceremony
üRating and benchmark
for all applicants
üAwarded in 2011
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18. The Indian Responsible
Competitiveness™ Index
An Award for the Most Responsibly Competitive™ companies in India
Together we will make Sustainable
Development sustainable
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