Transcript Presentation - Institute for Competitiveness, India

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
Table of Contents
• The Game has Changed
• Responsible Competitiveness™
• The Indian Responsible Competitiveness Index
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The Game has Changed
The Challenges of Sustainable Development Increasingly Affect the
Ability of Companies to Remain Sustainably Competitive
Energy
Climate Change
Access to
Technology
Poverty
3
Food Security
The
Company
Biodiversity
Conservation
Water
Access to
Health
The Game has Changed
Climate Change:
Threatens the livelihoods of 2 billion small-scale farmers
Requires USD $1.5 trillion/year in climate proofing for
power and water industries
Will cause millions to suffer from tropical diseases &
infections
Water Scarcity:
By 2030 the world will face a 40% deficit between fresh
water supply and demand
By 2020 two billion will lack access to clean, fresh water
1.6 billion already have difficulty paying for fresh water
Food Security:
 We require productivity breakthroughs to feed a global
population of 9 billion by 2050
 New food price increases are forecast due to climate
impacts, biofuel competition, and land speculation
 Major global brands (Mars, Nestle, Unilever) are
committing to source certified sustainable commodities
4
The Game has Changed
The Challenges of Sustainable Development Increasingly Affect the
Ability of Companies to Remain Sustainably Competitive
Energy
Climate Change
Food Security
For forward-thinking, strategic, and
The
Access
to
responsible
organizations,
these
Water
Compan
Technology
y
challenges represent
Business
Opportunities
Poverty
5
Biodiversity
Conservation
Access to
Health
Sustainable Development Business
Opportunities
Industry
Sector
6
Game-changing
Challenge
Potential Game-changing Solution
•Waste & use
•Purification
•Industrial Pricing
Agriculture
Depletion of water
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
Sustainable Development Business
Opportunities
Industry
Sector
Infrastructure
Transportation
7
Game-changing
Challenge
Green Design;
Community “Right of
Way”
Road safety; Access to
Mobility; Low-carbon
Financial Services
Access to finance;
Responsible Banking
Consumer Goods
Emerging consumer
interest in sustainable
development
Potential Game-changing Solution
•Use of recycled materials
•Strategic stakeholder engagement
•Low-energy design solutions
•“Driver-literacy”
•Low-cost, low carbon transport solutions
•Energy efficient vehicles
•Mobile Banking & Financial Literacy
•Investing in Responsibly Competitive firms
•Investing in low-carbon growth
•Create opportunities for low-income
individuals in value chains
•Source from certified producers
About AccountAbility
Our mission is to help our clients and members improve business
performance and build sustainable, competitive advantage.
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About AccountAbility
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 wellbeing of workers, communities, and ecosystems.
* Responsible Competitiveness™ is a trade mark registered to AccountAbility Strategies, no. 2521826
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Responsible Competitiveness™
Responsible Competitiveness™ enhances Business Performance in
five key areas.
General Electric’s ecomagination generated $70 billion in
revenue in its first 5 years, thanks to an initial $5 billion
investment.
Over a 10-year period, Dow realized $7 billion in savings
thanks to a $1 billion investment to reduce energy
consumption and improve efficiency.
Revenue
Innovation
Enhanced
Business
Performance
Risk
Mitigation
Reputation
Cost
Reduction
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.
Philips is building a $500 million solar lighting business for
low-income communities in Africa
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.
Responsible Competitiveness™
The Responsible Competitiveness approach builds on seven years of AccountAbility
research analyzing the social, environmental and governance performance of companies,
including:
•
•
•
•
•
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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™
“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
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“The essence of responsible
competitiveness is value creation”
Carlos Ghosn
Chief Executive Officer
Nissan
Responsible Competitiveness™
There is a strong correlation between Growth and Responsible Competitiveness
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Source: AccountAbility, 2008
Responsible Competitiveness™
As a Country, India falls into the category of “Complier”
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Source: AccountAbility, 2008
Stages of CR Development
Game Changing
Integrating
Conforming
Early-Stage
Companies
Emerging
Leaders
Pioneers
STARTERS
ASSERTERS
INNOVATORS
The Indian Responsible
Competitiveness™ Index
An Award for the Most Responsibly Competitive™ companies in India
Delivered in partnership
by AccountAbility and
the Institute for
Competitiveness
Country-wide, crossindustry
Award for the most
Responsibly
Competitive companies
Promoted through a
national media partner
and an Award
Ceremony
Rating and benchmark
for all applicants
Awarded in 2011
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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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