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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
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The Game has Changed Responsible Competitiveness™ The Indian Responsible Competitiveness Index 2 Table of Contents
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The Game has Changed The Challenges of Sustainable Development Increasingly Affect the Ability of Companies to Remain Sustainably Competitive 3
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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
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The Game has Changed 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 5
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Sustainable Development Business Opportunities Industry Sector 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 TelecommunicationsCommunications 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 6
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Sustainable Development Business Opportunities Industry Sector 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 7
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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.
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About AccountAbility
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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 10
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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 70 th percentile to the mid 90 th 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.
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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™ 12
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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 13
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Responsible Competitiveness™ There is a strong correlation between Growth and Responsible Competitiveness Source: AccountAbility, 2008 14
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Responsible Competitiveness™ Source: AccountAbility, 2008 As a Country, India falls into the category of “Complier” 15
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Stages of CR Development Game ChangingIntegratingConforming Early-Stage Companies STARTERS Emerging Leaders ASSERTERS Pioneers INNOVATORS
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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, cross- industry 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 17
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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 18
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