New Delhi  Palo Alto

cKinetics is a specialized Sustainability Advisory Firm providing end- to-end solutions for investors and businesses Market Access and Insight State of Sector Reports Market development platforms Regulatory and Policy analysis Market Access and Insight State of Sector Reports Market development platforms Regulatory and Policy analysis Sustainability Blueprint Resource efficiency roadmap & Implementation Product assessment and design Risk advisory Sustainability Blueprint Resource efficiency roadmap & Implementation Product assessment and design Risk advisory Brand Creation and Market Presence Market entry strategy and positioning Business reporting Brand Creation and Market Presence Market entry strategy and positioning Business reporting Investment and Sustainability Finance Structuring project finance Business structuring for JV/ M&A Carbon markets and access to climate finance Investment and Sustainability Finance Structuring project finance Business structuring for JV/ M&A Carbon markets and access to climate finance India HQ: New Delhi US: Palo Alto Accelerating actions on Sustainable Practices that include (a) Closed loop systems, (b) Decentralized production and consumption, and (c) Resource conservation

The 26 hour journey to….

Oye! Bem-Vindo Rio!!!

What we attended..

UNGC Corporate Sustainability Forum (16 th -18 th June) Forum convened over 2,700 participants - approximately half from the business and investor community, and half from civil society, academia, cities, Government and the United Nations 3 day event comprised over 120 sessions focused along six thematic tracks: –Energy & Climate, –Water & Ecosystems, –Agriculture & Food, –Economics & Finance of Sustainable Development, –Social Development, –Urbanization & Cities

What happened at Rio+20?

Interesting quotes “Energy is a 100% problem! Not a 20-30% problem”- Microsoft “Ewaste is the biggest emerging challenge”- GEF, World Bank, UNIDO, “Earlier value of nature was set at zero. With 9 billion people by 2050, need to optimize the resource management of the planet”- UNEP Chief “Not enough green electron. Need for governance to balance loads and make green electrons used at night”- Microsoft “Sustainability not Sustainable without board level engagement. CEO can’t be champion alone”- Calvert “Whenever a game changes, new rules are needed. The game has changed and resource prices are very different. Our EP&L demonstrates it. The role of the govt is to help set new rules” Puma “The time for gimmicks with carbon trading is over. We need a carbon tax as a simple way out”- IFC

What we learnt: Policy or businesses in the driving seat? Private sector and enterprise is moving ahead on sustainable business for its own reasons -not government or policy driven. Risk is a driver for many of the large corporates as : –Govt policy target’s the largest corporate –Consumer wrath targets those with the deepest pockets i.e. large corporate –NGOs target the largest corporates. However, policy is the key factor that gets consumers to move to take action. –Also policy will play a role only at a country level; with each country taking care of its own resources and interest.

What we learnt: Big on supply chain! Biggest play for businesses has been- their supply chain. –Corporates looking for improvements in resource efficiency of their supply chain –Eg: Puma’s Environmental P&L shows that only 6% of the environmental loss they can manage through their own ops. For the balance 94% they need to work with their suppliers.

Declarations by corporates and investors Coke, Nike, Kimberly-Clark Commit to Valuing Natural Capital at RIO+20 - Twenty-four major companies representing over $500 billion in combined revenues have agreed to incorporate ecosystems and biodiversity into their business strategies. Chief executives of 37 banks, investment funds, and insurance companies submitted a Natural Capital Declaration aimed towards integrating natural capital considerations into their products and services. Companies listed on the London Stock Exchange will be required to report on their carbon emissions from next year. The government will introduce mandatory carbon reporting rules requiring around 1,800 of the UK's largest listed companies to report annual on their greenhouse gas emissions. Over 70 businesses, Governments and international organizations endorsed the Green Industry Platform, an initiative to mainstream environmental and social considerations into corporate operations through efficient use of energy and raw materials, innovative practices and applications of new green technologies. Microsoft has commited to instituting a companywide commitment to achieve carbon neutrality by the end of fiscal year The commitment will apply to Microsoft’s business operations in over 100 countries.

Declarations – Energy and materials related BMW Group has set voluntary, long term environmental global targets in the areas of production, products and value-added chain. By 2020: Reduction of resource consumption (water, energy, waste, solvents) per vehicle produced by 45% (base year 2006) By 2020: Reduction of product CO2-Emissions by 50% (base year 1995) Nike: Achieve 20% reduction in CO2 emissions per unit (measuring energy and emissions based on footwear) from FY11 levels through FY15 Philips commits to improving the energy efficiency of its entire product and solutions portfolio by 50% in 2015 (compared to 2009). We will advance solar-LED lighting for cities, homes and buildings. Unilever: By 2020 our goal is to halve the environmental footprint of the making and use of our products as we grow our business Total commits to develop the solar photovoltaic solutions market by providing access to solar lamps and kits to 5 million low income people by 2015, through the growth of an efficient and sustainable Infosys Limited commits to reduce its direct footprint: reduce consumption by 50%, source 100% of electricity from renewables, become carbon neutral, and work with public policy makers on regulations

Declarations – Water related Nike: By 2015: Improve efficiency by 15% per unit in apparel materials dyeing and finishing and footwear manufacturing (from FY11 through FY15) As part of the Better Cotton Initiative, H&M commits to: By 2020: 100% of our cotton should come from more sustainable sources, i.e. a combination of organic cotton, re-cycled cotton and better cotton. GSK has commited to a reduction in its direct use of water, coupled with a reduction in its value chain's water footprint. By 2015: GSK will reduce its direct use of water by 20% by 2015 Coca-Cola global water stewardship goal is to safely return to nature and to communities an amount of water equivalent to what it uses in all its beverages and their production by By 2015: Coca Cola will reduce its water-use ratio to improve water efficiency by 20%

Additional resources

What we learnt: new business models New, evolving business models - Sell use instead of selling products –It also solves problems of need for materials and puts the emphasis on creating closed loop systems. To reach scale, economic incentive structures must be realigned so that sustainability is valued and profitable.

What we learnt: sustainability reporting Many corporates may be measuring and adhering to certain sustainability related activities and metrics but not a systematic manner. –Reporting standards enable businesses to ask the right questions in the right order.

What we learnt: sustainability reporting Problem of sustainability reporting has moved beyond quality and quantity of disclosure and is more to do with harmonizing the multiple reporting standards which exist to meet the demands of various stakeholders. –COSA comparing data on standards effectiveness, ISEAL- harmonizing alliance. SECO driving a lot of the agenda. –Consumers still have not taken up labeling. (Mars CSO example to be cited). Labeling / reporting is for producers. –India is still lagging behind in this area where the primary problem still remains quality and quantity of disclosure of sustainability related data.

What we learnt: Policy will be led by businesses