sustainability reporting - beyond disclosures
TRANSCRIPT
© 2013 Larsen & Toubro Limited : All rights reserved
By,$Alok%Sharma%
Larsen'&'Toubro'Limited''$
5th$April$2013$
© 2013 Larsen & Toubro Limited : All rights reserved
Larsen & Toubro
Construction Hydrocarbon Heavy Engineering Power
Electrical & Automation MIP Infotech
Engineering and Construction Company with annual turnover of USD 13.5 Bn
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Global Challenges
Population Growth
Global Warming
Economic • Subprime crisis • Melt down • Bailouts
• 0.50C- 0.60C global temperature increased over 1991 levels
• A 2 0C rise will melt arctic ice caps beyond repair –unprecedented damage to marine and coastal life
Current world population – 7 bn and growing
World Population
Global Temp. and CO2
• World Economy: US$ 71.62 trillion (2012 est.)*
• GDP (Per Capita): US$ 12,500
• GDP Growth : 3.3%
*'Reference:'www.indexmundi.com''
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“Sustainable Development is to meet the needs of the present without compromising the ability of future generations to meet
their own needs”
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Sustainable Development
Economic'
Environment'
Social'
- Brundtland Commission, 1987
“Sustainability Reporting is …. the practice of measuring, disclosing, and being accountable to internal and external stakeholders for
organizational performance towards the goal of sustainable development”
- GRI Sustainability Reporting Guidelines
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History'of'Climate'Change'&'Sustainability'ReporCng'
1993 India ratifies
UNFCCC
1997 Kyoto protocol
adopted
2005 1st commitment phase of Kyoto
2008: India rolls out National Action Plan on Climate Change
2009:$New$$Interna9onal$collec9ve$agreement$at$Copenhagen$$
2010 India
principally agrees to
Copenhagen Accord
2000 1st GRI guidelines
on reporting
2002 2nd GRI
guidelines on reporting
2006 3rd GRI
guidelines on reporting
2000 United Nations
Global Compact
2010 Cancun Summit: Emphasis on developing countries for emissions cuts
2012'Doha:'Second'commitment'period'(2013J2020),'New'Global'Climate'mechanism'from'2020,'encouraged'rich'countries'to'commit'USD'10'billion'every'
year'Cll'2020'towards'Green'Climate'Fund'
Sustainable'Development'Goals'2015'
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INDIA’s'Response'&'Alignment'
Kyoto'Protocol'Signed$2002$
! Copenhagen'Accord'20B25%$emission$intensity$reduc9on$of$2005$levels$by$2020$
! NaConal'Voluntary'Guidelines'(NVG)'released$by$Ministry$of$Corporate$Affairs$$
NaConal'AcCon'Plan'on'Climate'Change'(NAPCC)'8$Missions$
2002$
2008$2009$
2011$
! NVG$on$Social'Environmental'&'Economic'ResponsibiliCes'of'Business'released$
! Annual$Business$Responsibility$Report$(ABRR)$framework$released$
2012$
! Company'Bill'2012'with'CSR'clause'Proposed$'
! SEBI$Mandate$for$Top$100$Companies$(Market$Cap)$to$publish$Business'Responsibility'Report'as$part$of$annual$Report$
2006$
GRI'–'G3'Guidelines'released$
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Increasing demand for Non financial disclosures
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Regulators'&'Stock'exchanges'
Countries'
Corporates'
Stakeholders'
Investors'
Emerging$trend$for$nonBeconomic$repor9ng$
Regula9ons$for$listed$companies$to$disclose$ESG$performance$(Sweden,$Norway,$$
South$Africa,$UK)$
Large$organiza9ons$see$benefit$other$than$ESG$disclosures$$
Seeking$transparency$and$responsible$business$
prac9ces$
Disclosures$$&$ESG$performance$
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Global'Trend':'Sustainability'ReporCng'
Denmark:'Mandatory'for'Large'Companies'(1996)'
Sweden:'Mandatory'for'Govt.'Companies'(2009)''
South'Africa:'Integrated'Reports'for'listed'companies'2010'
onwards''
:SEBI'mandate:'Top'100'companies'to'disclose'Business'Responsibility'report'as'per'NVG,'MoCA'(2013)'
Working'towards'integrated'Reports'by'2020'
Source:(Global(Repor/ng(Ini/a/ves(
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'''''''''''''''''$
India
Global Context
• Business Ethics
• Transparency
• Climate Change
• Conservation of Natural resources
Drivers
Added Dimensions • Social cause
• Inclusive Development
• Energy Security
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Sustainability'ReporCng:'Our'Journey''
All'Reports'are'‘GRI'Checked’'A+''
1st'Indian'Company'in'Engineering'&'ConstrucCon'Space''to'report'''
1st'Indian'Engineering'&'ConstrucCon'Company'to'do'organizaCon'wide'carbon'footprint'mapping''
Project “Prithvi”
Sustainability'Report'2012'
Sustainability'Report'2008$
Sustainability'Report'2009'
Sustainability'Report'2010'
Sustainability'Report'2011'
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Name of Indicator Core Additional Total
Economic 7 2 9
Environmental 17 13 30
Social
Product Responsibility 4 5 9
Labor Practices 9 5 14
Human Rights 6 3 9
Society 6 2 8
TOTAL 49 30 79
Indicators as per GRI – G3 Guidelines
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Sustainability Executive Board
supported by Corporate core team
Sustainability Council Corporate Centre, Environment, Social, Finance and
business verticals
Sustainability Team Responsibility – Unit-in-charge and
members
At Corporate
Level
At IC
Level
At Unit Level
Corporate Core Team IC Head
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Sustainability Organization Structure
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Social''
Governance' Environment'
• Attrition Rate • Capacity Building • Employee Health
& Safety • Inclusive
Development
• Sustainability Disclosure
• Transparency
• Carbon Footprint • Resource
Conservation • Energy Efficiency • Renewable Energy • Product Innovation
Environment Governance Social
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Stakeholder Engagement
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Sustainability Thrust Areas'
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Climate'Change'• Carbon'footprint'mapping'of'L&T'OperaCons'
Energy'ConservaCon'• Energy'audits'of'manufacturing'locaCons'
• Improve'energy'conservaCon'metric'
• Increase'use'of'renewable'energy'
Water'ConservaCon'• AdopCng'zeroJdischarge'approach'
• Reducing'per'capita'water'consumpCon'
• Rain'Water'HarvesCng'(RWH)'
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Sustainability Thrust Areas'
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Waste'Management'• Material$waste$reduc9on$
• Reduce,$Recycle/Reuse,$Recover$
Safety'• Enhance'level'of'safety'training'
• Improving'Safety'performance'at'workplace'
Social'• Mother'and'Child'Health'care'
• EducaCon'• Skill'Building'
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Green'Building'
Renewable'Energy'Tele'Presence'/'Video'Conference'
Carbon'Management'
Avoided$more$than$27,000$Tons$of$CO2$
emission.$$Increase$of$>$12%$in$energy$conserva9on$$
Carbon'SequestraCon'
2007J08' 2008J09' 2009J10' 2010J11' 2011J12'
10.59'8.69' 8.3' 7.82' 7.57'
GHG'emissions'from'Direct'energy'consumpCon'(Tons/employee)'
28.5%'
2007J08' 2008J09' 2009J10' 2010J11' 2011J12'
170.49'133.12' 128' 122.36'116.73'
Energy'consumpCon'(GJ/employee)'
31.5%'
2007J08' 2008J09' 2009J10' 2010J11' 2011J12'
'15,099'''35,632'' '51,072''
'97,783'''123,417''
Energy'ConservaCon(GJ)'
Renewable$Energy$over$10$%$
1.6$Million$Sq.$b$inBhouse:$$Six$Green$Buildings.$
25.2$Million$Sq.$b.$for$clients$
CO2'Sinks'• GIS$based$mapping$• Completed$at$6$loca9ons$• 16,309$tons$9ll$date$
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L&T’s'Solar'Energy'407'KW'Grid'Connected'Plant'$
Renewable Energy
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L&T’s'Wind'Energy'Farm'of'8.7'MW'–'South'India'$
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Chennai'
Talegaon'
Ahmednagar''
Hazira'
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1.6'million'sq.'j.'of'L&T'
owned'Green'Building'space'
Green Buildings
Chennai''
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Water'Management'
Implement''3R'(Reduce,'Recycle,'Reuse)'Principle'
Watershed'development:'Check'dams'
Rain'Water'HarvesCng'
State'of'Art'Technologies'Awareness'Campaign'
Overall'
6.3%'ReducCon'in'water'consumpCon'
Check'dams:'CollecCng'
191'million'liters'of'water'
Harvested'more'
than'22.9'million'liters'of'rainwater'
16'campuses'have'achieved'Zero'wastewater'discharge'status'out'of'22'
'2,515,592''
'2,445,181''
'2,384,681'''2,356,219''
2008J09' 2009J10' 2010J11' 2011J12'
Water'consumpCon'(m3/year)'
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Corporate'Policies'&'Framework'
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Environment'&'Business''Case'
Climate'Change' Energy'ConservaCon' Natural'Resources'ConservaCon$
Water'ConservaCon'16$Campuses$$of$L&T$achieved$Zero$wastewater$Discharge$
Green'Buildings:$Consuming$lesser$natural$resources$&$Energy$Efficient$$25'million'Sq.'j'of$green$space$constructed$for$clients$
Recycled'Material:''Use$of$Fly$Ash,$Crush$Sand$in$construc9on$
Solar'Energy'Largest$Solar$PV$EPC$player$with$114$MW$of$capacity$execu9on$in$one$year$
Energy'Efficiency''Conserved$34.3$million$units$and$avoided$27,000$tons$of$CO2$emissions$
Carbon'emission'reducCon'Reduc9on$in$GHG$emission$per$
employee$B$31%'of$2007B08$level$
Energy'reducCon'Reduc9on$in$Energy$consump9on$per$employee$B$28'%$of$2007B08$level$
Renewable'Energy'Green$Energy$usage$
more$than$10'%$across$Company$
Super'CriCcal'Power'plants,'Fuel'Switch'&'DHDS'Projects'
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Advantages of Sustainability Reporting
Internal'Controls'! CollaCon'of'non'financial'parameters''(environmental'&'social)'
! Helps'to'improve'performance'with'strong'data'management'! ProacCvely'addresses'environmental'&'social'regulatory'requirements''
CommunicaCon'! Involving'stakeholders'! More'interacCve''and'a'vehicle'to'promote'best'pracCces'! Brand'management'
Risk'MiCgaCon'! ProacCve'assessment'of'
environmental'and'social'risks'! Addressing'environmental'and'
social'risk'in'the'preJbid'stage'of'projects'''
Business'Need'! Emerging'preJqualificaCon'
requirement'! SelecCon'criteria'by'internaConal'
clients'specially'from'Europe'and'InsCtuConal'Investors''
! Focused'community'engagement'programs''
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Corporate Social Initiatives
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Thrust Areas
Mother & Child Health Care
Education
Skill Building
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Over half million benefited in 2012
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Health
L&T’s Community Health Centres
-Currently at Mumbai, Hazira, Surat, Coimbatore, Chennai, Ahmednagar & Kansbahal
-Provides health services to L&T employees and Communities
-2/3rd of the patients are from the Community$
L&T’s Mobile Health Van
-It provides access to health care at the doorstep for marginalized communities.
-The focus during these health camps is on health education, promoting health seeking behaviour, early diagnosis and referral.
Reproductive & Child Health services -Diagnostic and curative gynecological services, prenatal, postnatal services & immunization
-HIV/AIDS awareness, detection and counseling .
-Counselling services for childcare, nutrition & family planning
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Education
147 schools supported and reaching out to 1,00,000+ underprivileged children across India
Support to pre-schools.
Infrastructure development, Teaching aids, uniforms, computers.
Flag ship programmes in schools (Maths, Science, English, Health, Hygiene and Safety).
Teacher’s training prorgammes (Yoga sessions, Personality development, English classes, etc).
Summer camps, sports activities and toy libraries as recreation centres.
School visits to institutions and places of educational interest.
School health checkup camps.
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Skill Building
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8: CSTIs, Tie ups: 30 ITIs, 10 NGOs
12: Construction trades, 3 months course with stipend
Promoting employability & Business Connect
Target: Rural youth / school dropouts
Tailoring, computer training, beautician training, teachers’ training, food processing, home nursing for women from underprivileged backgrounds
Opportunities to generate livelihood for self-help groups/ individuals
Women Empowerment
Construction Skill Training Institutes (CSTI)
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Project Neev : Enriching Lives of the Specially Abled
'''''''''''''''''$ Leprosy cured patients at Ahmednagar
Exposition of products
Vocational training for specially abled
• Encouraging skills of the "Differently
Abled by way of expositions through
NGOs
• Training programmes & formation of
self help groups
• Specially abled engaged in the value
chain
• Aiming to mainstream the specially
abled
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Alignment'with'Millennium'Development'Goals'(MDGs)'
'• VocaConal'&'Life'skills'training'• NutriConal'supplement'to'children'in'
Pre'–Schools'• Income'generaCon'for'underprivileged'
youth'&'migrants''
• Improve'quality'of'educaCon'• Providing'early'childhood'educaCon'• Providing'educaCon'in'community'• School'infrastructure'development'&'
learning'aids,'enhancing'curriculum'&'classroom'learning'
• Skill'development'programme'• Empowering'women'in'communiCes'• Livelihood'opportuniCes'for'women'
• ImmunizaCon'• Access'to'paediatric'care'• Regular'health'check'ups'in'schools'&'
preJschools'• PromoCon'of'breast'feeding'
• Pre'&'postnatal'care'• Health'awareness'• Family'planning'measures'• Anaemia'control'
• IntegraCon'with'NaConal'Health'programmes'
• Awareness'drives'&'medical'care'for'malaria'and'other'diseases'
• Counselling,'tesCng'&'ART'for'HIV/AIDS'
• Developing'and'enlarging'L&T’s'Green'Product'Poroolio,'
• ImplementaCon'of'3R'(reduce,'recycle,'reuse)'principles'
• Water'shed'development'in'rural'areas'&'large'scale'tree'plantaCon'drives'
• Skill'building'programmes''in'Middle'East'
• Sharing'of'best'pracCces'with'stakeholders'
• CollaboraCon'&'partnership'with'NGOs'
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Recognition
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Among'Top'10'in'S&P'ESG'India'Index'2012'
‘Corporate'Governance'&'Sustainability'Vision'Award’'by'Indian'Chamber'of'Commerce,'2012'
Newsweek'ranks'L&T'4th'Globally'in'list'of'Greenest'Industrial'Companies'
L&T'Ranks'among'Top'10'in'Carbon'Disclosure'Leadership'Index'(CDLI'2012)''
AIMA’s'best'CSR'case'study'award'2012'
Golden'Peacock'Award'for'Excellence'in'Corporate'Governance'
in'2011$
L&T'Ranks'the'worlds'9th'Most'InnovaCve'Company'by'Forbes'
L&T'Conferred'‘Caring'Company'Award’'By'World'CSR'Congress'2013'
L&T'Ranks'as'the'Corporate'Sustainability'leader'in'the'ConstrucCon'&'Materials'
Sector'2012'(Emerging'Markets)'
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Thank'You'