By: JAIDEEP SINGH GROVER

CHARANPREET KAUR

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Green” is perhaps one of the biggest trends to hit the modern marketplace. Wal-Mart is going Green.

Hollywood celebrities are eco-evangelists.

The 2008 Olympics set the new gold standard for sustainable events.

Religious leaders are making the environment a moral issue.

GOING GREEN

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Two Central questions to answer:

Is there a trade off between Going Green &

Profitability?

Should firms take the initiative to Go Green.

DEFINING THE TOPIC

Sustainable Business

Triple Bottom Line

Corporate Social Responsibility

GOING GREEN

Humanity has the ability to make development

sustainable--to ensure that it meets the needs of the

present without compromising the ability of future

generations to meet their own needs.

SUSTAINABLE BUSINESS

Profit

People

Planet

TRIPLE BOTTOM LINE

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Stakeholder theory.

Social contract argument.

Environment ethic.

OBLIGATIONS TO GO GREEN

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Stockholder theory :

Firms are obliged only to the stockholders

Stakeholder theory :

Firms have obligations to any person who is affected

by a firm’s actions

STOCK HOLDER VS. STAKE HOLDER

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Firms are obliged to address any environmental issues that

affect the stakeholders.

More realistic description of how firms operate - managers

are not only concerned with stockholders.

Right thing to do because it corrects environmental

problems caused by business.

STAKEHOLDERS’ ARGUMENTS

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Contractual obligations with the society

Society expects that firms engage in socially acceptable

practices in return for “allowing” them to conduct business

activities.

Firms who do not use power (in ways that society deems

responsible) will tend to lose it.

SOCIAL CONTRACT

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90% of executives and consumers expect environmental issues to

be top sociopolitical issue for the next five years (Mckinsey Global

Survey 2008)

Singapore aims to be carbon trading hub (worth US$25b in 2006)

in Asia (CNA 17 Nov 07)

FORTUNE 500 CEOs, including GE’s Jeff Immelt and Wal-Mart’s

Lee Scott have initiated going green (Fortune 2 Apr 2007)

GREEN IS ENTERING SOCIAL CONTRACT

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Treaty initiated by United Nations (UN)

Aims

To stabilize greenhouse gas concentration level such that it

will not harm the climate

Not legally binding

Includes provisional updates (Protocols)

◦ Kyoto Protocol

◦ Legally binding

United Nations Framework Convention on Climate Change (UNFCCC)

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Diesel Vehicle registered after 1 Oct 2006 Comply Euro VI emission standard Lower CO 2 and particulate matter

Impact Taxi companies Bus companies

Alternatives for Taxi and Bus Companies Natural gas CNG vehicles

CONTROL OF VEHICULAR EMISSIONS

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The “Equator Principles”

All things being equal, firms which are green will have easier

access to capital

Bank of America

Barclays plc

Citigroup Inc.

HSBC Group

JPMorgan Chase

The Royal Bank of Scotland

Share prices of greener firms command higher premiums.

(Harvard Business School Review)

WALL STREET & GREEN

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ONGC is India’s ‘Greenest Company’, as per Business Today

  ONGC is the first company to achieve zero-flaring in Offshore.

Adopted an eco-friendly process for de-sludging crude-oil storage tanks

On expanding green cover, maintaining biodiversity apart from creating

aesthetically satisfying environment are key objectives of the company.

 ONGC has developed a corporate mission statement on being carbon neutral, one

of the few energy majors so far.

ONGC has formalized its corporate policy on Climate change and sustainability,

the only PSU in India to have done so.

ONGC

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India’s third greenest company.

Treated effluent water recycling and re-use and rain water

harvesting

Re-circulating sea cooling tower systems instead of once through

sea cooling water system thereby minimizing the sea cooling

requirement and effluent discharge to the sea.

Minimize / eliminate fugitive emissions

Improvement in Energy Efficiency of the Refinery & distribution

operation by use of new technology & modern instrumentation.

BPCL BPCL

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The KB-series engines introduced in 2008-09 are the most fuel efficient and environment friendly

engines. The Ritz, a new car with a KB-series engine is the first car in India that meets Bharat Stage -

4 emission requirements, ahead of the deadline of 1st April, 2009 set by Government.

The company has constructed Rain Water Harvesting structures within the factory premises to

collect rain water and recharge back into the aquifer below ground level.

Zero waste water discharge company

Company has its own captive power plants to meet its power requirements .The major fuel used for

power generation is natural gas.

The company promotes 3 R (Reduce, Reuse and Recycle) in its manufacturing facilities, supply

chain and logistic operations

MARUTI

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30.6% of company’s energy come from renewable source.

Farm forestry project cover 90000 hectares .

ITC’s paper & paper product gets readymade material from

carbon sequestration, which creates rural jobs.

ITC office in Gurgaon is LEED certified at highest level of

energy efficiency.

ITC hotels use energy-efficient compact fluorescent lamps.

ITC

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ITC sonar in Kolkata is world’s first carbon positive

five star hotel.

Its green initiative extends to rain water harvesting,

recycling of waste and effluent.

Contd……

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Nokia ranks in first place in taking “green” initiatives in electronic sector.

Aims to minimize the environmental impact of its products throughout all its

operations.

First mobile handset manufacturer which had Eco declarations available for

its products as early as 2001.

All devices use as little energy as possible, sourcing 25% of its energy from

renewable resources and aiming to increase that amount to 50% by 2011.

NOKIA

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Dropped the hazardous waste of its manufacturing

operations by 30%.

To design the world’s first manned airplane powered by a

fuel cell.

Remained a technology and aerospace leader as well as a

responsible corporate citizen through its commitment to

sustainability and innovation.

AEROSPACE (BOEING)

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Large contributor to the global transmission and

distribution of energy.

Claim to minimize the environmental impact through

various efforts including solutions that allow for CO2

free energy generation for transmitting energy from

environmentally friendly sources.

One of the largest supporter of nuclear energy.

Continues to support the construction of new reactors

AREVA

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HP’s energy star qualified product save consumer money by

reducing energy costs and help protect the environment.

Committed to offering products and services worldwide that

help customers save money, conserve energy and improve the

quality of environment.

Needs to eliminate e-waste and initialize some more recycling

initiatives such as voluntary take-back program like the one

NOKIA has in place.

HEWLETT PACKARD

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Global manufacturer and retailer of naturally inspired,

ethically produced beauty and cosmetics products.

First international cosmetic brand to be awarded the Humane

Cosmetics Standard for their Against Animal Testing Policy.

Has their own fair trade program called Community Trade,

making it the only cosmetics company with such a far-

reaching commitment to trading fairly.

THE BODY SHOP

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Launched aggressive program, push 60,000 suppliers to produce goods

that don’t harm the environment,& to urge consumers to buy green

To encourage sustainability of the world’s fisheries, forests and

farmlands, by slashing energy use and reduce waste.

Claims “they will reduce solid waste from U.S stores by 25% within

3 years”.

Cut energy use at its more than 7,000 stores worldwide by 30% and

cut greenhouse gas emissions at existing stores by 20% in seven years.

WAL-MART

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Believe it can earn lot of credits by saving energy, and it

can sell them for millions of dollars to companies that cannot,

and all of those savings will go into keeping the low prices of

its products.

WAL-MART

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Engaged in business activities under the guiding principle of

“contributing to the development of a prosperous society through the

manufacture of automobiles

In the manufacturing area production plants are being made

sustainable by employing natural energy sources such as solar and

wind power, and through ecological preservation by planting

greenery around production sites

TOYOTA MOTOR CORPORATION

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Toyota’s production system falls in the philosophy of the

complete elimination of all waste in all aspects of

production in quest of the most efficient production method.

Toyota is also engaging in social contribution, establishing

the Corporate Citizenship Division to reinforce activities and

functions, conducting educational programs to raise the

awareness of global warming issues.

TOYOTA MOTOR CORPORATION

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Spending $750 million of its advertising budget in 2006 to promote

this new green image

GM is responding to environmental pressures to remain profitable, as it

still largely engages in producing gas-consuming SUV’s and even

maintains its attempts to increase the new fuel economy standards put

on vehicles

Toyota beat General Motors in 2008 and became the global leader in

vehicle sales which proved that designing a sustainability strategy has a

triple bottom line effect, i.e. profit, community and environment

GENERAL MOTORS

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McD's restaurant's napkins, bags are made of recycled paper

Coca-Cola pumped syrup directly from tank instead of plastic which

saved 68 million pound/year.

Badarpur Thermal Power station of NTPC in Delhi is devising ways

to utilize coal-ash that has been a major source of air and water

pollution.

New Delhi, In 2002, a directive was issued to completely adopt CNG

in all public transport systems to curb pollution.

SOME MORE CASES

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Bush Administration's Clear Skies Initiative, which

environmentalists have argued actually weakens air pollution laws.

Google has been criticized for claiming its data centers are

extremely energy efficient, while refusing to publish any figures on

this topic because such information could aid its competitors.

Many food products have packaging that evokes an environmentally

friendly imagery even though there has been no attempt made at

lowering the environmental impact of its production.

ERRONEUS CLAIMS

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The Comcast ecobill has the slogan of "Paper LESS is MORE"

but ComCast uses large amounts of paper for direct marketing.

The Poland Spring ecoshape bottle is touted as "A little natural

does a lot of good", although 80% of beverage containers go to

the landfill.

The Airbus A380 airliner is described as "A better environment

inside and out" even though air travel has a high negative

environment cost.

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32% of the nation’s electricity, or over 908 billion

kilowatt-hours, goes towards lighting, heating, cooling, and

providing other electrical needs for office buildings.

• That equals 804 million tons of carbon dioxide. And you

thought cars were big polluters.

• It costs businesses $66 billion.

ENERGY EFFICIENCY – WHY IS IT IMPORTANT

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Energy Efficiency

Efficiency - Turning Things Off Digital Thermostat

• Use a programmable thermostat to make sure heating is turned down after hours. This can save $570, around 10% a year on heating and cooling energy.1

That means ~$100/yr. and 3/4 of a ton of CO2 4.5 tons CO2

Motion Sensors in Conference Rooms saved • Can save ~$100/yr. and 3/4 of a ton of CO2 each

Lighting Policy • An office of 20 people that leaves a quarter

of its lights on at night can save ~$340 and 2 1/2 TONS of CO2 by turning these off

Computers, printers, etc. • Turn off computers, printers, etc where and

when you can

Source: 1. U.S. Department of Energy

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Energy Efficiency

Efficiency - Lighting

The future, LED lighting

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ENERGY EFFICIENCY

COOL ROOFING

ENERGY STAR™ compliant roofing materials with high

emissivity can reduce peak cooling demand by 10-15% •

This also reduces urban ‘heat islands’. The heat island

effect can raise temperatures 2-10° F in urban areas. For

each degree the temperature rises above 70 in L.A., 3%

more smog is created.2 Source: 1. Energystar.gov; 2. U.S. Green Building Council

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Energy Efficiency

Tree shading

• The shade from a mature tree correctly positioned to shade the

building can reduce cooling costs by 20-40%. One of the

benefits of deciduous trees (trees that lose their leaves in the

autumn) is that they allow sunlight to reach and warm the

building during winter.

• Could save $400 and 3 tons of CO2 per year

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Energy Efficiency

Renewable Energy

•Vestas Wind Systems has more than 30,000

wind turbines generating electricity globally and

its high-tech systems are 80 per cent recyclable.

It also sources 68 per cent of its energy

requirements from renewable sources

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Resource Use

REDUCE, REUSE, RECYCLE AROUND THE OFFICE

• Printing, Marketing materials - FSC Certified

• Paperless Office

•100% post-consumer recycled paper is now very

comparable in price and quality to regular paper.

Here are the benefits for the environment compared

to virgin paper: - 100% fewer trees used

-Emits 37% fewer greenhouse gases -

-Uses 43% less energy - Uses 46% less water

- Reduces solid waste up to 49%

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