MBA 3048

3 CREDITS - 3-0-0-3 (L-T-P-C)

L - Lecture T-Tutorial P-Practical C-Credits .

Environmental sustainability and Value Creation

Modul[Link] Sustainability, Business, and Public Policy

[8 Hrs] [ Blooms ‘level selected: Knowledge]

Topics

1. Basic concept of Sustainability,

2. Sustainable business,

3. policy initiatives at the international and national level,

4. Concepts and approaches for accessing the sustainability of Business,

5. Sustainability Metrics
Sustainability

• It refers to the ability to maintain or support a process continuously

over time. In business and policy contexts, sustainability seeks to
prevent the depletion of natural or physical resources, so that they will
remain available for the long term
Definition : WCED
• The UN World Commission on Environment and Development

• Sustainable development is development that meets the needs of the

present without compromising the ability of future generations to meet
their own needs.
• Environmental sustainability is the responsibility to conserve natural
resources and protect global ecosystems to support health and
wellbeing, now and in the future.
• It involves the conservation of land, freshwater, oceans, forests,
and air.
• Nowadays there are many remarkable environmental
sustainability examples aiming at stopping or even reversing
the negative impact of human activities on the environment.
• Sustainable development supports the long-term goal of sustainability
with the implementation of systems, frameworks, and support from
global, national, and local entities.
Environmental sustainability
can leverage 2 different types of activities.

[Link] management – Use environmental science and

conservation biology to actively manage the allocation of natural
resources. Taking into account the capacity of the ecosystem to absorb
the impact of human activities.

2. Demand management – Influence the demand for natural resources

by leveraging green technology, government incentives and regulations,
and promoting environmental awareness and an eco-friendly lifestyle.
 3 pillars of sustainability (the triple bottom line)

TBL framework : The three bottom lines, or pillars -

1. Economic Sustainability
2. Social Sustainability
3. Environmental Sustainability

Profit, People, and the Planet , to evaluate their performance in a

broader perspective to create greater business value.
ISO 14001: Environmental Management Systems (EMS)
• It is an internationally agreed standard that sets out the requirements
for an environmental management system. It helps organizations
improve their environmental performance through more efficient use
of resources and reduction of waste, gaining a competitive advantage
and the trust of stakeholders.
• The ISO 14000 family of standards was created in 1996, and the
current revision of ISO 14001 was published in September 2015.
ISO 14001 EMS contains 5 key elements
• Environmental policy;
• Planning;
• Implementation and Operation;
• Checking and Corrective Action.
• Management review.
Method

• It outlines the framework for organisations to manage their

environmental responsibilities.
• Auditing, a significant part of this environmental management system,
is more than a regulatory requirement.
• It also brings tangible benefits to businesses.
• Environmental Management System (EMS) is an international
standard.
• It aims to aid organisations to achieve environmental sustainability,
striking a balance between the environment, society and economy.
• These are the three pillars of corporate sustainability.
• The primary objective of the ISO 14000 series of standards is
to promote effective environmental management systems in
organizations.
• ISO 14000 includes standards that cover aspects of management
practices inside facilities, in the immediate environment around the
facilities, and during the life cycle of the actual product. This
includes understanding the impact of the raw materials used to
create the product as well as the impact of its eventual disposal.
OECD
• The Organisation for Economic Co-operation and Development is an
intergovernmental organization that was established in 1961 to
promote economic growth and world trade. The OECD is made up of
38 member countries that are committed to democracy and the market
economy. The organization is headquartered .in Paris, France
• Reflecting presence of huge market barriers in the country, India stood
at 47th position in Services Trade Restrictiveness Index(STRI)
conducted by the Organisation for Economic Cooperation and
Development (OECD) for the year 2022.
7 KEY INITIATIVES TO ACHIEVE
SUSTAINABILITY GOALS
1. Infrastructure Imperatives,
2. Carbon Management,
3. Green Energy,
4. Circular Economy,
5. Environment Conservation,
6. Water Conservation
7. Energy Efficiency.
Sustainable business practices
• Renewable energy
• Supply chains
• Ethical sourcing
• Develop sustainable work practice
• Recycle electronics
• Green procurement
• Educate employees
• Conserve water
• Improve efficiencies
Renewable energy

• Renewable energy is energy produced from sources like the sun and
wind that are naturally replenished and do not run out. Renewable
energy can be used for electricity generation, space and water heating
and cooling, and transportation.
7 main sources of energy
• SOLAR ENERGY. Solar energy is the most abundant of all energy
resources and can even be harnessed in cloudy weather. ...
• WIND ENERGY. ...
• GEOTHERMAL ENERGY. from heat inside the earth
• HYDROPOWER. from flowing water.
• OCEAN ENERGY. ...
• BIOENERGY. Biomass from plants
4 Pillars of ESG - Environmental, Social, and
Governance.
• The framework divides disclosures into four pillars — principles of
governance, planet, people, and prosperity — that serve as the
foundation for ESG reporting standards.
• ESG investors aim to buy the shares of companies that have
demonstrated a willingness to improve their performance in these
three areas
Sustainability Framework ( SF )
It is the most important document for a sustainability strategy or an
ESG profile.

It defines Co vision and strategy, sustainability goals and objectives,

their alignment with Sustainable Development Goals and key
performance indicators (KPIs).
Common ESG frameworks
Common ESG frameworks
1. Global Reporting Initiative (GRI)
2. Carbon Disclosure Project (CDP)
3. Task Force on Climate-Related Financial Disclosures (TCFD).

ESG performance has become an important metric to evaluate an

organization's operational sustainability.
Frameworks for sustainability in business
1. Three Pillars of Sustainability Framework - This framework is based
on three connected areas: technology and innovation, laws and
governance, and economics and financial incentives.

2. Triple bottom line - This framework assesses a company's social and

environmental impact and economic value. The three pillars of business
sustainability are environmental, social, and economic demands.
Frameworks for sustainability in business
3. Task Force on Climate-related Financial Disclosures (TCFD) - This
framework helps the global financial sector understand the potential
impact of climate change on businesses. It has four areas: governance,
strategy, risk management, and metric and targets.

4. CDP (Carbon Disclosure Project ) - This framework focuses on

measuring and understanding environmental impact. It also promotes
corporate environmental transparency by monitoring and disclosing
carbon emissions.
Frameworks for sustainability in business
5. Climate Disclosure Standards Board (CDSB) - This framework helps
organizations develop annual environmental impact reports. One of its
main objectives is to translate sustainability information into long-term
value.

6. ISO 14001 - This framework creates a comprehensive framework for

businesses to achieve sustainable organizational goals.

7. United Nations Principles for Responsible Investment (UNPRI) - This

framework provides a framework for incorporating sustainability and ESG
management best practices into investment decisions and ownership
practices.
Frameworks for sustainability in business

8. Greenhouse Gas Protocol (GHG Protocol) - This framework offers

businesses and organizations guidance in measuring and managing
greenhouse gas emissions.

The Kyoto Protocol was an international treaty which extended the 1992 United Nations
Framework Convention on Climate Change that commits state parties to reduce
greenhouse gas emissions, based on the scientific consensus that global warming is
occurring and that human-made CO₂ emissions are driving it.
The Kyoto Protocol was adopted in Kyoto, Japan, in December 1997 and entered into force
in February 2005. India signed the Kyoto Protocol on 26 August 2002.
4 major greenhouse gases
• Carbon dioxide, methane, nitrous oxide, and various synthetic
chemicals.
• Carbon dioxide is widely reported as the most important
anthropogenic greenhouse gas because it currently accounts for the
greatest portion of the warming associated with human activities.
Kyoto Protocol
The Kyoto Protocol is an international treaty that extends the 1992
United Nations Framework Convention on Climate Change.
It was adopted in 1997 and is the world's only legally binding treaty to
reduce greenhouse gas emissions.
• The Kyoto Protocol sets binding targets for 37 industrialized countries
and the European community to reduce greenhouse gas emissions.
The protocol covers six categories of greenhouse gas emissions:
1. Carbon dioxide (CO2)
2. Methane (CH4)
3. Nitrous oxide (N2O)
4. Hydrofluorocarbons (HFCs)
5. Perfluorocarbons (PFCs)
6. Sulphurhexafluoride (SF6)
• UNFCCC stands for United Nations Framework Convention on
Climate Change. It is an international treaty that was agreed upon in
1992 at the Earth Summit in Rio de Janeiro. The treaty's goal is to
prevent dangerous human interference with the climate system.

• The Kyoto Protocol operationalizes the United Nations Framework

Convention on Climate Change by committing industrialized countries
and economies in transition to limit and reduce greenhouse gases
(GHG) emissions in accordance with agreed individual targets
• The UNFCCC is the parent treaty of the 2015 Paris Agreement. It has
198 parties, which is nearly universal membership. The countries that
have ratified the convention are called the UNFCCC conference of
parties (COP). The UNFCCC's secretariat is located in Bonn,
Germany.
• COP 28 refers to the United Nations Climate Change Conference
taking place in Dubai, United Arab Emirates, from 30 November until
12 December 2023.
• The 29th session of the Conference of the Parties (COP 29) to the
UNFCCC convened in November 2024 , Baku , Azerbaijan.
• The 2025 UN Climate Change Conference (UNFCCC COP 30) will be
held in Brazil in November 2025
3 market-based mechanisms of the Kyoto
Protocol

1. Emissions trading
2. The clean development mechanism
3. Joint implementation
• Corporate sustainability frameworks are tools that help businesses
align their environmental, social, and economic goals with their
strategies, operations, and performance.
ISSUES FOR THE COAL INDUSTRY

1. Acceptance of Sustainable Development Principles

2. Balancing the Objectives of Sustainable Development
3. The Role of Technology
4. Differing Regional Views
5. Co-operation and Collaboration along the Value Chain
6. Collaboration and Co-operation with Non-industry Partners and
Participation in Non-business Activities
7. Integrating Sustainable Development Principles into Practice
8. Government Policies and Regulations
 What is Sustainability..!?

• In 1987, the United Nations Brundtland Commission defined sustainability as

“meeting the needs of the present without compromising the ability of future
generations to meet their own needs.”

• Sustainability, the long-term viability of a community, set of social institutions, or

societal practice. In general, sustainability is understood as a form of
intergenerational ethics in which the environmental and economic actions taken
by present persons do not diminish the opportunities of future persons to enjoy
similar levels of wealth, utility, or welfare.
Sustainability movement
• It aims to not only protect the environment but also to reconcile the
activity of current human generations with the needs of future
generations.
• Sustainability in business refers to a company's strategy to reduce
negative environmental impact resulting from their operations in a
particular market.
• An organization's sustainability practices are typically analyzed
against environmental, social, and governance (ESG) metrics.
Dimensions of Sustainability

Although sustainability is linked to the environmental movement, the

notion that it is only focused on the environment is a misconception.
Sustainability is based on three dimensions:

Environmental Sustainability

Social Sustainability

Economic sustainability
Dimensions of Sustainability
• Environmental Sustainability occurs when humanity’s rate of consumption
does not exceed nature’s rate of replenishment and when humanity’s rate of
generating pollution and emitting greenhouse gases does not exceed nature’s
rate of restoration.

• Social Sustainability is the ability of a society to uphold universal human rights

and meet people's basic needs, such as healthcare, education, and
transportation. Healthy communities ensure personal, labour, and cultural
rights are respected and all people are protected from discrimination.
Dimensions of Sustainability

• Economic sustainability is the ability of human communities around the world to

maintain their independence and have access to the resources required to meet
their needs, meaning that secure sources of livelihood are available to everyone.

• The three dimensions of sustainability can be visualized in different ways. The

nested model shows how each dimension is dependent on the next. The
economy is dependent on society, and both are dependent on the environment.
Sustainability Triad
Examples-need for sustainability

• Atmosphere often becomes a sink for chemicals. Among other negative

effects, this results in global warming, ozone loss, acid rain, and urban smog.

• Oceans are a sink for pollutants such as agricultural and industrial run-off. In
addition, fishery depletion affects ecologic equilibrium.

• Rapid extraction of lumber, minerals, and clear-cutting for agricultural and

urbanization purposes has resulted in extensive rainforest deforestation, which
in turn results in decreased biodiversity and global climate change.
Sustainable Development Goals

• In September 2015, the General Assembly of the United Nations

adopted the 2030 Agenda for Sustainable Development. This includes
17 Sustainable Development Goals (SDGs). The goals build on the
vital principle of “leaving no one behind”, and emphasizes a holistic
approach to achieving sustainable development for all.
The Global Goals (SDGs)