Corporate Sustainability & Accountability – The Challenges in Asia OECD – Bangkok November 2009 Ravi Fernando

Asia’s Sustainability Challenges 1. The World’s Most Populous Continent - 3Billion + 2. The World’s Factory – 60%+ of most Industries 3. Water & Energy - Economic and Physical shortages 4. Child labour & Poverty - 61% of 230m 5. The Worlds highest Carbon emitting nations..

3 Why Care about Sustainability? Hypothesis - Population growth cannot be sustained without modifications in lifestyle

Global Poverty : Concentrated in Asia 3 billion live on less than two dollars a day 1.3 billion have no access to clean water 3 billion have no access to sanitation 2 billion have no access to electricity – Mostly in Asia?

Global Changes: Is this our World? 20% of the population in developed nations consume 86% of the world’s goods. The poorest 20% of the world’s population consume 1.3%. Global disparity of wealth distribution – Pronounced in Asia ?

(C) Ravi fernando 2006 July The Business Case Asia – The Worlds Factory In Most Industries over 70% share -Apparel – China / Bangladesh / India Child Labour - 61% of 230m Children

Global Warming (1850 to 2007) Source: Climatic Research Unit and the UK Met. Office Hadley Centre Brohan, P., J.J. Kennedy, I. Haris, S.F.B. Tett and P.D. Jones, 2006

8 Concentrations of CO2 in the Atmosphere

9 Market Impacts

Water Shortage Agricultural Drought - impact of meteorological/ hydrological drought on crop yield. Meteorological Drought - lack of rainfall Hydrological Drought - reduction in water resources (stream flow, lake level, ground water, underground aquifers)

(C) Ravi fernando 2006 July

12 World Energy Demand Forecast World Primary Energy Demand by Fuel (IEA World Energy Outlook 2004)

13 Energy Demand Energy demand is projected to increase by 57% over the next 25 years Most of the demand will come from India and China Much of this demand will be met with energy from coal-fired or oil-fired generators This will result in greater emissions of CO 2, SO x and particulate matter Nuclear power is expected to be a significant factor

Unsustainable development … three planets!!!

Ethical Ethical = Sustainability Global Survey 2005

Triple Bottom Line Concept “To reach sustainability, one must achieve not only economic ‘bottom line’ performance but environmental and social performance as well.” British Economist John Elkington

New Paradigm Sustainable Value Creation Business Strategy for Sustainability Economic Environmental Social Economic Environmental Economic Triple Bottom Line Sustainable Business Business and environment on separate tracks START (1963) Operations Marketing Sales R&D Breaking down the Green Wall Breaking down the business walls Business-Driven Strategic Environmental Management Integrated Value Chain Six Sigma Balanced Score Card Total Quality Cycle-Time Reduction From Share holder value to Stake holder value The Sustainable Company - Chris Lazlo 2003

Strategic Corporate Sustainability “Commitment to implementing strategies for Sustainable Business which differentiates the organization, whilst impacting all stakeholders which are in its sphere of influence.” © Ravi Fernando June 2008

Strategic Corporate Sustainability By Establishing if it has : Economic Sustainability -Innovation driven -Differentiation -Corporate Governance Corporate Strategy = Competitive Differentiation Which TBL is it single mind about differentiating on? Corporate Responsibility = Commitment to Sustainability Establish if the organization has a ‘Sustainability Mind set’ Environmental sustainability -Measures its carbon foot print -Mitigation strategies (Renewable) -Green Business -Recycling strategy -Water Social Sustainability - Labour /Employees - Community - Human Rights/Societal

(C) Ravi Fernando 2006 July Sustainability Driven Innovation Environment – Toyota Prius Hybrid ) Economic- Re-use & Re- cycling 98% of material of old products Economic– Eco Magination – green technology Social – Ready mix water purifier ‘Pur’ Social – System for UK’s Grey population to get Emergency needs Social - System to communicate “Face to Face” 2 Economic – Life Cycle Analysis of Products Environment – Plan A ( WALL- MART) Sustainable Products, Sustainably made Sustainability drive Innovation Differentiated on the Sustainability platform! 2008

What is Sustainable Nanotechnology? Triple Bottom Line ‘ To reach sustainability, one must achieve not only economic bottom line performance but environmental and social performance as well’ -John Elkington (1997) ‘ Cannibals with Forks-The Triple Bottom line of 21 st century business ’ Economic Sustainability -Differentiation to compete globally Environmental Sustainability -Must not impact the ecology negatively and contribute to ‘more from less for more’ Social Sustainability - Minimize risk of negative societal impact in terms of ‘nano safety’

(C) Ravi fernando 2006 July Sustainable Business in your hands! Start with a sustainability mind set.. Thank you for your time

Asia’s Sustainability Challenges Social Sustainability The World’s Most Populous Continent -3Billion + Child labour & Poverty -61% of 230m Environmental Sustainability The World’s Factory – 60%+ of most Industries Water -Economic and Physical shortages -The Worlds highest Carbon emitting nations..

RAF Branding Creating Intel Inside in Apparel ‘M IND SETS’required for Future Business Managers - Sustainability mind set - Differentiation mind set - Global Mind set