Towards Greener World: Presentation By: Vivek Sharma

Towards Greener World
Presentation by: Vivek Sharma
Quotes
"Earth provides enough to satisfy every man's need, but not every man's greed - Mahatma Gandhi
"You cannot escape the responsibility of tomorrow by evading it today - Abraham Lincoln
Sustainability
Sustain means to maintain", "support", or "endure Sustainability is improving the quality of human life while living within the carrying capacity of supporting eco-systems
Reasons Why Companies Do Not Go For Green

More environment friendly the companies become, the more the effort will erode their competitiveness. Going Green will add cost ; No immediate financial benefits too.
Other Important Reasons

Suppliers can not provide green inputs or transparency Sustainable manufacturing will demand new equipments and processes Customers will not pay more for ecofriendly products during recession Sustainability as a corporate social responsibility divorced from business objectives.
Sustainability Issues
Pitched battle between - Govt. and Companies - Companies and Consumer Activists; and - Consumer Activists and the Govt. Suggestions - More and increasing tougher regulations. - Educating and organizing consumers so that they will force businesses to become sustainable
Conflict of Goals
"Sustainability is here to stay or we may not be" - Niall Fitzgerald
Largely social benefits of developing sustainable products or processes VS Financial cost of Going Green
Innovative Companies are Smart Companies

Sustainability Organizational and technological innovations Yield both bottom line and top line returns Becoming environment friendly lowers costs because of reduced inputs In addition, the process generates additional revenues from better products or enables companies to create new businesses.
The key to success -- INNOVATION

The quest for sustainability is already starting to transform the competitive landscape, which will force companies to change the way they think about products, technologies, process and business models.
Ultimate Goal
By treating sustainability as a goal today, early movers will develop competencies that rivals will be hard pressed to match. The competitive advantage will stand them in good position because sustainability will always be an integral part of development.
Stages of Change
Stage I Viewing Compliance as Opportunity Stage II Making Value Chains Sustainable Stage III Designing Sustainable Products and Services Stage IV Developing New Business Model Stage V Creating Next Practice Platforms
Stage I Viewing Compliance as Opportunity

CENTRAL CHALLENGE To ensure that compliance with norms becomes an opportunity for innovation.
COMPETENCIES NEEDED The ability to anticipate and shape regulations. The skill to work with other companies, including rivals, to implement creative solutions.
INNOVATION OPPORTUNITY Using compliance to induce the company and its partners to experiment with sustainable technologies, materials, and processes.
Examples
Tata Nano Euro IV regulation for fuel consumption and emission standards. Hewlett Packard (HP) -1990 Lead solders By July 2006 HP was able to comply with EUs Restriction of Hazardous Substance Directives.
Stage II Making Value Chains Sustainable

CENTRAL CHALLENGE To increase efficiencies throughout the value chain. COMPETENCIES NEEDED Expertise in techniques such as carbon management and life-cycle assessment. The ability to redesign operations to use less energy and water, produce fewer emissions, and generate less waste. The capacity to ensure that suppliers and retailers make their operations eco-friendly. INNOVATION OPPORTUNITIES Developing sustainable sources of raw materials and components. Increasing the use of clean energy sources such as wind and solar power. Finding innovative uses for returned products.
Examples
Supply Chain- Vendors consume around 80% resources . Unilever By 2015 purchase palm oil and tea only from sustainable sources. Operations- Fed Ex- replacing old aircrafts with Boeing 757 thus reducing fuel consumption by 36% while increasing capacity by20%. Workplace- IBM -3,20,000 employees, 25% telecommute, leading to annual savings of $700 million in real estate cost alone. Returns- Returns reduce corporate profitability by an average of 4%. Besides returns reuse the products- Cisco -> 5% in 2004 to 45% in 2008, resulting recycling cost reduced by 40%.
Stage III Designing Sustainable Products and Services

CENTRAL CHALLENGE To develop sustainable offerings or redesign existing ones to become ecofriendly. COMPETENCIES NEEDED The skills to know which products or services are most unfriendly to the environment. The ability to generate real public support for sustainable offerings and not be considered as green washing The management know how to scale both supplies of green materials and the manufacture of products.
INNOVATION OPPORTUNITIES Applying innovative technologies in product development. Developing compact and eco-friendly packaging.
Examples
Unilever In October 2005 it launched the sustainable concentrated detergent, which saves 500 million gallons of water and 150 million pounds of plastic each year. And the smaller bottle means Unilever can transport three times as much product in every truck, saving 26 million gallons of diesel each year. ING Bank provides funds which invest in renewable energy, microfinance, or Kyoto Protocol emission reduction projects. British Airways-Zero waste to landfill in the UK by 2010, Improve carbon efficiency by 25% by 2025 - reducing the grams of carbon dioxide per passenger kilometre from 111 to 83 grams, Reduce the average noise per flight by 15% by 2015, 50% reduction in net CO2 emissions by 2050.
Central challenge To find novel ways of delivering and capturing value, which will change the basis of competition. Competencies needed The capacity to understand what consumers want and to figure out different ways to meet those demands. The ability to understand how partners can enhance the value of offerings. INNOVATION OPPORTUNITIES Developing new delivery technologies that change value-chain relationships in significant ways. Creating monetization models that relate to services rather than products. Devising business models that combine digital and physical infrastructures.
Stage IV Developing New Business Model
Example
Indian Posts Instead of shipping the electronic transfer it sends the master copy to one of its offices. Prints and binds the document and deliver copies anywhere in the city. Result- Shrinking of the delivery cost while service also becomes eco friendly.
Stage V Creating Next Practice Platforms

CENTRAL CHALLENGE To question through the sustainability lens the dominant logic behind business today. COMPETENCIES REQUIRED Knowledge of how renewable and nonrenewable resources affect business ecosystems and industries. The expertise to synthesize business models, technologies, and regulations in different industries. INNOVATION OPPORTUNITIES Building business platforms that will enable customers and suppliers to manage energy in radically different ways. Developing products that wont need water in categories traditionally associated with it, such as cleaning products. Designing technologies that will allow industries to use the energy produced as a by-product.
Smart Grid
For Internet and Energy Management Features Using digital technology to manage power generation, transmission and distribution from all types of sources along with consumer demand. Operating resilience against physical and cyber attack. Result - Lower cost and efficient use of energy. Usage -The grid will allow companies to optimize the energy use of computers, network devices, machinery, telephones and building equipment, through meters , sensors and applications. Enable energy needs of cities, companies, buildings and households. Examples - HP, Dell, IBM, Cisco as internet platform while utilities include GE and ABB in India.
Smart Grid
ITC
ITC Royal Gardenia, Bangalore has been rated the world's largest & India's first Leadership in Energy and Environmental Design (LEED) Platinum Green Hotel CII-ITC Center of Excellence for Sustainable Development, Gurgaon is also a Platinum Green Center and has been said as Center of Future by Hillary Clinton, Foreign Minister of USA.
IBM Software
Reduce commuting with online collaboration and increasing work from home Reduce business travel by using online collaboration Shift workloads to underutilized servers to reduce energy and floor space needs Schedule execution of workload to off-peak hours to use lower-cost energy Effectively manage asset life cycles Optimize applications to reduce needed IT resources and energy Consolidate and virtualise to eliminate floor space and computing infrastructure Optimize HVAC for hot spots to reduce energy consumption Effectively manage your data storage needs Reduce the power consumption when workloads decrease Optimize business processes to reduce the energy footprint and costs of operations Reduce use of paper by enabling business processes to use e Forms and images
An Appeal
THANK YOU

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Towards Greener World

Presentation by: Vivek Sharma

Reasons Why Companies Do Not Go For Green

Other Important Reasons

Innovative Companies are Smart Companies

The key to success -- INNOVATION

Stage I Viewing Compliance as Opportunity

Stage II Making Value Chains Sustainable

Stage III Designing Sustainable Products and Services

Stage IV Developing New Business Model

Stage V Creating Next Practice Platforms

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