INTRODUCTION TO

ENVIRONMENTAL MANAGEMENT
MODULE I
Neelesh Kumar
Assistant Professor
Anil Surendra Modi School of Commerce
NMIMS University
Mumbai
INTRODUCTION TO ENVIRONMENTAL MANAGEMENT

• Environmental management is evolving rapidly; it is important for more and

more sectors of human activity and plays a crucial role in establishing
sustainable development.

• Organizations are rapidly changing their structures, systems, work processes

and activities- WHAT IS THE IMPACT????

• NEED FOR A CLEAR FOCUS AND DIRECTION TO FACILITATE PROPER DECISION-

MAKING
EMERGING TRENDS

• An era of information revolution

• Traditional Supply Chains paving way for virtual supply chains

• Relationship amongst different stakeholders and Customers

changing drastically

• Organizations are becoming extended enterprise

• An increasing concern for environmental performance and

reporting practices
EFFORTS BY MANKIND

• “30 years ago, the international community gathered in

Stockholm for the UN Conference on Human Environment”

• Currently, the predominant view among the environmentally

aware is that humankind has a limited time (a few decades) to
set in motion development that will sustain indefinitely as many
people as the Earth can support, giving them a satisfactory
‘quality of life’, and causing as little environmental damage as
possible (Caldwell, 1977: 98; Berger, 1987: 116; Ghai and Vivian,
1992).
Definition of Environmental Management

“A Systematic approach to resource utilization,

whereby more of renewable energy sources are
replenished for optimum utilization over non-
renewable resources in a sustainable manner, such
that one complies with the laws and legal procedures
as laid down by the state, using an extensive
Environmental Management System (EMS) to achieve
this goal”
Definition & Scope of Environmental Management

• Environmental management seeks to steer the

development process to take advantage of opportunities,
try to avoid hazards, mitigate problems, and prepare
people for unavoidable difficulties by improving
adaptability and resilience (Erickson and King, 1999;
International Network for Environmental Management
website http://www.inem.org – accessed January 2005).
CAUSES OF ENVIRONMENTAL DEGRADATION
POPULATION EXPLOSION
• After the world population increased more than 400% over the 20th century, population growth has slowed
considerably. Over the course of the 21st century world population will likely only rise by 50% and reach around
11 billion by 2100
• World population - exponential growth
• 1 billion in 1800
• 2.5 billion in 1950
• 6 billion in 2000
• 7.3 billion in 2015-16
• 8.5 billion+ by 2030
• 9.7 billion+ by 2050
• 11 billion+ by 2100
China and India remain the two largest - each with more than 1 billion
people, representing 19 and 18 % of the world’s population, respectively. But by
2022, the population of India is expected to surpass that of China.
(SOURCE: www.ourworldindata.com)
CAUSES OF …………. CONTD…..
• UNPLANNED URBAN LAND USE
• TECHNOLOGICAL ADVANCEMENTS
• NON-BIODEGRADABLE WASTES
• INDUSTRIALIZATION
• GENERATION OF HAZARDOUS WASTES
• CONCEPT OF “USE & THROW” IN PLACE OF “USE & REUSE” EG: SHAVING
BLADES, PENS, ETC
• NOT IN MY BACKYARD (NIMBY) CONCEPT
• EFFECTS OF “GREEN REVOLUTION” ON THE AGRICULTURAL RESOURCES
• “DAMN THE DAMS” PROJECTS HAVE CAUSED ENVIRONMENTAL DAMAGE
Points on Serious Note

• People in developing countries , especially LDCs have less capacity to adapt

to change
• They are more vulnerable to environmental threats & the Global change
(incl. CLIMATE CHANGE)
• POVERTY considered as one of the most important causes of vulnerability to
environmental threats
• Poor bear the maximum brunt / adverse impact of disasters, conflicts,
drought, desertification & pollution (having much lower coping capacities)
• Degradation of natural resources such as land, fresh and marine waters,
forests and biodiversity threatens the livelihood of many people
• POORER AND IGNORANT SECTIONS OF SOCIETY SUFFERS THE MAXIMUM due to
displacements, related job loss and change in livelihood options.
Some more Statistics

• Poor environmental quality directly responsible for 25%

of preventable diseases, with diarrhoea and acute
respiratory infection heading the list

• Air pollution is a major contributor to a number of

diseases (5 % deaths attributed to Air Pollution)

• Globally, 7 % of all deaths and diseases are due to

inadequate or unsafe water, and lack of sanitation and
hygiene
WHAT IS THE OUTCOME THEN???
• Environmental management is all about PREVENTION, PRESERVATION AND
PROTECTION of our natural environment. (3 P’S of environmental
Management) from exploitative use of non-renewable resources.

• The IMPORTANCE OF CONSERVATION OF ENVIRONMENT AND RESPECT FOR

NATURE form the UNDERLYING PRINCIPLE of many cultures of developing &
developed nations.

• The main aim of environmental management is to assess the impact of

Human & Technology on the environmental and to prevent or reduce its
negative effects on our environment.
Initiatives taken to counteract Environmental
Degradation
• USE OF SOFT TECHNOLOGY -Biogas, CNG driven cars, Electricity generated
from wind energy, solar cooker etc.
• USAGE OF BIO DEGRADABLE MATERIALS like paper bags in place of plastic
bags, vermiculture
• SOLID WASTE MANAGEMENT PROGRAMMES: for recycling waste in urban
areas eg: generating electricity by using domestic wastes by BMC, Dumping
wastes for filling up marshy land
• TREATMENT OF WATER EFFLUENTS using primary & secondary waste
affluent water treatment plants in various industrial zones.
• Afforestation in Pollution Zones in industrial belts - Creation of Green Belts
in Air polluting industrial zones like MIDC industrial areas.
Some other measures/initiatives

• USE OF “GREEN LABELS” ON PRODUCTS TO INDICATE THAT IT CAN BE

RECYCLED OR BIODEGRADABLE or have eco-friendly raw materials.
• CERTIFICATION OF ISO-14001 FOR ORGANISATIONS FOLLOWING STRICTLY
PROCEDURES laid down by an International Standards EMS.
• RAIN WATER HARVESTING PROJECTS UNDERTAKEN IN MOST METROS &
URBAN CITIES OF INDIA.
• ENVIRONMENTAL EDUCATION IN SCHOOLS / COLLEGES
• ENVIRONMENTAL MOVEMENTS like CHIPKO.
The Global Environmental
and Climate Crisis
Is there really a Global Environmental and Climate
Crisis?

GLOBAL WARMING AND CLIMATE CHANGE

• There are clear signs of Global Warming and the resultant climate
change. Average global temperatures are rising. Extreme weather
including droughts, floods and storms have become more common.

• In India, 8 out of 10 warmest years occurred during the decade

2001-2010. In 2013 , cyclone Phailin adversely affected 12 million
people along Odisha coast.
POPULATION- Are there too many people on our Planet
Earth?
• After the world population increased more than 400% over the 20th century, population growth has
slowed considerably. Over the course of the 21st century world population will likely only rise by 50%
and reach around 11 billion by 2100
• World population - exponential growth
• 1 billion in 1800
• 2.5 billion in 1950
• 6 billion in 2000
• 7.3 billion in 2015-16
• 8.5 billion+ by 2030
• 9.7 billion+ by 2050
• 11 billion+ by 2100
China and India remain the two largest - each with more than 1 billion
people, representing 19 and 18 % of the world’s population, respectively.
But by 2022, the population of India is expected to surpass that of China.
(SOURCE: www.ourworldindata.com)
Environmental Footprint

› An environmental footprint is a measure of the amount of

resources consumed and the amount of pollution; e.g., green
house gas and waste created by an entity and by the firms that
serve the entity.
› Human activities consume resources and produce waste. As our
populations grow and global consumption increases, it is essential
that we measure nature’s capacity to meet these demands on our
planet.
How the Ecological Footprint Works?

• The Ecological Footprint measures the supply of and demand on nature: On the supply side biocapacity
represents the planet’s biologically productive land areas including our forests, pastures, cropland and
fisheries. These areas, especially if left unharvested, can also absorb much of the waste we generate,
especially our carbon emissions.

• Biocapacity can then be compared with humanity’s demand on nature: our Ecological Footprint. The
Ecological Footprint represents the productive area required to provide the renewable resources humanity is
using and to absorb its waste. The productive area currently occupied by human infrastructure is also
included in this calculation, since built-up land is not available for resource regeneration.

• Our current global situation: Since the 1970s, humanity has been in ecological overshoot with annual
demand on resources exceeding what Earth can regenerate each year.
Ecological footprint
Ecological footprint

• An ecological footprint is a measure of human impact on Earth's

ecosystems.
• Its typically measured in the amount of natural capital consumed
each year.
• At a global scale, it is used to estimate how rapidly we are depleting
natural capital.
• The Global Footprint Network calculates the global ecological
footprint from UN and other data. They estimate that as of now our
planet has been using natural capital 1.5 times as fast as nature can
renew it.
Footprint measurements

• Ecological footprints can be calculated at any scale: for an activity, a person, a community, a city, a region, a
nation or humanity as a whole.

• There is no fixed way to measuring such footprints

• Any attempts to describe the capacity of an ecosystem in a single number is a massive simplification of
thousands of key renewable resources, which are not used or replenished at the same rate.

• Footprint values at the end of a survey are categorized for Carbon, Food, Housing, and Goods and Services
as well as the total number of Earths needed to sustain the world's population at that level of consumption.

• Ecological footprint analysis is now widely used around the Earth as an indicator of environmental sustainability
Water and Sanitation

• 2 billion people live in countries that are already water-stressed

and by 2025, two-thirds of the world population may suffer
water stress.
• Some 80 countries suffer from serious water shortages now. Half
of the world population lacks proper sanitation facilities.
• During 1911-2014, India lost 50% of its lakes and wetlands to
other uses.
• More than 60,000 villages are without a single source of drinking
water. Over 110 million rural households are without toilets at
home.
BIOLOGICAL DIVERSITY
• Worldwide, of the known species- 30% amphibians, 25% mammals, 12% birds ,
25% reptiles and 21% of fish species are threatened with extinction.
• The current extinction rate is estimated to be 100 to 1000 times the rate at
which species naturally disappear.
• More than 10% of India’s recorded wild Flora and Fauna are threatened and
many are on the verge of extinction
• During the decade 2000-2010, the world lost around 13 million ha of forest
every year. Tropical forests are being cleared at the rate of 70,000 to
1,70,000 sq. km annually(equal to 20-50 soccer fields per minute)
• India has lost around 94 million ha of natural forests since 2000
LAND & POLLUTION
• Each year 6 million ha of agricultural land are lost due to
desertification and soil degradation. This loss affects 250 million
people in the world.
• About 40% of India’s land has been degraded. We lose 5.3 billion tonnes
of topsoil every year.
• During 2007- 2014, 57,000 ha of land were diverted for industrial and
non-agricultural uses.
• At least 1 billion people in the world breathe unhealthy air and 3
million die annually due to air pollution. Air pollution levels are still
above the WHO guidelines in most developing countries.
• Indian cities were having the highest levels of air pollution and India
has the highest rate of deaths caused by chronic respiratory diseases.
(WHO Report)
OCEAN & COASTAL AREAS

• Overfishing and Acidification of Sea- marine life at risk

• Large areas of Ocean have become dead zones without any life.
• Worldwide 50% of coastal mangroves and corals reefs which perform vital
ecological functions have been destroyed.
• Industrial affluents, domestic waste, agricultural runoff, shipping activity, and
offshore (oil) exploration cause heavy pollution of the Arabian sea and the bay
of Bengal.
• In last 40 years, India has lost more than 50% of its mangrove forests
ENERGY CONSUMPTION & URBANIZATION

• More than 2 billion people world-wide go without adequate energy

supplies.
• By 2030, more than 3 billion people in Asia & Africa would continue to rely
on fuelwood for cooking and heating while 1 billion people will have no
access to electricity.
• India imports 80 % of its oil needs to primarily feed its transportation
sector.
Consequences of Green House Gases(GHGs)

• Greenhouse gases can stay in the atmosphere for an amount

of years ranging from decades to hundreds and thousands of
years. That is the major reason to explain for ozone layer
hole. Ozone depletion is the main cause which leads to
climate change or also called global warming. According to
the scientists’ claim facing with global warming means that
we have to face with other serious troubles at a time.
OZONE LAYER DEPLETION
 CLIMATE CHANGE:
IMPLICATIONS FOR BUSINESS
Trend & Views on Climate Change

• In a recent poll, majority in all 40 countries said that Climate Change

was a serious problem
• Global median of 54% said it was a very serious problem
• Widespread disagreement as regards one question- WHAT NEEDS TO BE
DONE?
• Many Economists believe that the benefits of reducing Global emissions
greatly exceed the costs.
• ONLY PARTIAL AGREEMENT AS TO WHAT EXACTLY SHOULD BE DONE , HOW
QUICKLY IT IS APPROPRIATE TO ACT, AND WHO PAYS THE COSTS?
• SOME COUNTRIES, PARTICULARLY THE UNITED STATES , REJECT THE
SCIENTIFIC CONSENSUS ALTOGETHER.
An Introduction to Climate Change

• Earth’s average temperature has been increasing since the Industrial

revolution.
• Between 1880 and 2015, average global surface temperatures rose by
0.9 degrees Celsius
• 2016 was the Earth’s 3rd consecutive hottest year.
• Since 1880, atmospheric CO2 eq concentrations have risen from 290 ppm
to 430 ppm
• GHG emissions were 60% higher in 2014 than they were in 1990.
• The planet Earth retains approx. 816 terawatts of excess heat per year,
or more than 50 times the world’s entire consumption.
• Nearly 200 nations have formally acknowledged in joint statements and
international agreements that human activity is responsible for global climate
change, incl. the national academies of Brazil, Canada, France, Germany,
India, Italy, Japan, Russia,the United Kingdom & the U.S.
• About 97% of climate scientists agree that human activity is causing climate
change.
• Predicting how GHG emissions are likely to evolve and the resulting changes
in Earth’s temperature is a complex undertaking, fraught with uncertainty.
• In response, the UNEP and the WMO created IPCC in 1988 – “to prepare,
based on available scientific information, assessments on all aspects of
climate change and its impacts, with a view of formulating realistic
response strategies.”
SOME CONSEQUENCES
• By 2016- CO2 concentrations in the atmosphere were 404 parts per
million(ppm), the highest levels in 400,000 years and up almost 7%
since 2007
• What Happens if no additional efforts are taken????
Consequence 1
IPCC states that , if no additional efforts are taken to mitigate the
effects of climate change, CO2eq concentrations are likely to increase to
approximately 450 ppm by 2030 and between 750 ppm and 1,300 ppm by
2100.
Consequence 2
By 2100, the planet may experience global mean surface
temperatures increases of 3.7⁰C to 7.8 ⁰C compared to pre-industrial
levels
World History of Climate Change
• KYOTO PROTOCOL which comprised of: (a)International Emissions Trading
& Carbon Emission Reduction(CERs); (b) CLEAN DEVELOPMENT MECHANISM(CDM) and
(c) Joint Implementation

• PARIS AGREEMENT/ CLIMATE DEAL (December, 2015)

• CONFERENCE OF PARTIES (COP 24) held at Katowice, Poland during Dec 02-14,
2018. (Related Link- https://cop24.gov.pl/)

(NOTE:YOU ARE REQUIRED TO GO THROUGH CONTENT RELATED TO THE TOPIC GIVEN IN

CLASS & SOFT COPY SENT EARLIER VIA EMAIL.)
WORLD HISTORY OF CLIMATE CHANGE –Some
Useful Links

LINK TO THE MOVIE – An Inconvenient Truth (49 mnts.)

• https://www.youtube.com/watch?v=hcIewO97JZM

HOW TO AVOID CLIMATE CHANGE REALLY FAST (20 mnts.)

• https://youtu.be/iw2AHyMmGT8

WHY PEOPLE DON’T BELIEVE IN CLIMATE SCIENCE (7 mnts.)

• https://www.youtube.com/watch?v=y2euBvdP28c
The Impact of Climate Change
• RISING SEA LEVELS – Two-thirds of the world’s largest cities are located
in low-lying coastal areas. By 2100 sea levels are projected to rise by 2
meters (6.6 feet)
• CHANGING WEATHER PATTERNS AND EXTREME WEATHER
-Rising temperatures implies that atmosphere can hold more water
vapour and there is a shift in the rainfall patterns worldwide.
-In California, 2015 was the driest year on record
-Somalia, Kenya and other East African countries have experienced
below-average rainfall since the late 1990’s- leading to 30% reduction in
crop yields and resultant famines in 2010, 2011 and 2016.
- An increase in the prevalence of hurricanes and other destructive
weather events
SOME MORE IMPACTS
• PRESSURE ON WATER AND FOOD
-Food production is tightly coupled with water availability
-As recently as 2014, just 16% of the Earth’s cropland were irrigated(as
opposed to rainfed)
-By 2030, overall demand for water may outstrip supply by 40%
-Global food production is also affected by warmer temperatures,
increased CO2 levels and extreme weather events.
- By 2090s, without significant reductions in GHG emissions, the
proportion of global land surface in extreme drought could increase
from 1-3% today to a whopping 30%.
- Crops grown under high levels of CO2 yield less of nutrients such as
iron, zinc and protein. (warmer weather also allows pests, weeds and
parasites to thrive)
SOME MORE IMPACTS…..
• POLITICAL AND SECURITY RISKS
-Climate change has been linked to increased political instability worldwide.
-When food prices rose sharply in 2007-08, dozens of so-called “food-riots” caused
casualties in Argentina, Cameroon, Haiti and India.
- Both the Somalian civil war and the Syrian civil war have been linked to drought
and famine exacerbated by Climate Change.
The US Military has suggested CLIMATE CHANGE is-”a salient national security
concern,” which could redraw maps ansd spheres of engagement while compounding
conflicts and resource constraints in some of the world’s already vulnerable
countries, leading to further instability and even war.”
CONCLUDING SLIDE
• HUMAN HEALTH RISKS
- Higher temperatures increase the possibility of heat related injury and death. 70,000 people died in the 2003 European heat
wave, and more than 50,000 died in a 2010 heat wave in Russia.
- Thousands more have perished in increasingly severe heat waves in India(2015), Europe(2006) and around the world.
- Between 2000 and 2013, the instances of Lyme disease in the U.S doubled
- Burning of coal has been linked to tens of thousands of premature deaths in the U.WS. Annually. As per WHO, in 2012 alone , 7
million people died due to air pollution.
- In the US, the extraction, transportation, processing and combustion of coal cause 24,000 excess lives lost annually due to lung
and heart disease (evaluated at $187. 5 billion p.a.) and 11,000 excess lives lost annually due to high health burdens in coal-
mining regions(evaluated at $74.6 billion per year) {As per research conducted by Harvard T.H. Chan School of Public Health}
Health Impacts of fossil fuel electricity in the US totaled between $362 to $ 887 billion p.a. (2.5% to 6% of GDP respectively)

• IMPACT ON WILDLIFE AND ECOSYSTEMS

- CC significantly affects many natural habitats and puts many species at higher risk of extinction in the coming century.
- Current extinction rates are 100 times the normal rate
- By 2100, 30% to 50% of the world’s land and marine species may be extinct (Sea much more Acidic)
RESPONDING TO CLIMATE CHANGE : THE
ONGOING DEBATE
• GENERAL AGREEMENT IN THE SCIENTIFIC COMMUNITY
“Global warming needs to be limited to 2⁰C above pre-industrial levels by end of
21st century and atmospheric concentrations of CO2 to remain below 450 ppm”

REDUCING EMISSIONS REQUIRES ACTIONS ON 3 FRONTS:

1. Greatly increasing the efficiency with which energy is used
2. “Decarbonizing” the world’s energy system through the use of renewable energy
or carbon capture, and
3. Changing Land use and Management
CHECK THE – The Carbon Mitigation Initiative at Princeton University.
SIGNIFICANT PROACTIVE MEASURES REQUIRED
• IMPROVEMENTS IN ENERGY EFFICIENCY

• MOVING AWAY FROM FOSSIL FUELS

• CHANGES IN AGRICULTURAL, FORESTRY, AND OTHER LAND USE PRACTICES

• GEOENGINEERING
The debate: Who should pay and How much
Should be spent? (To counter CC)
• Costs of mitigating the effects of climate change are
are likely to be much lower than the costs of having
it unchecked.
• As per IPCC, keeping GHG to a level that offers a 66%
chance of not exceeding 2⁰C warming would cost 3%
to 11% of world GDP by 2100, while leaving Global
Warming Unchecked might cost 23% to 74% of Global
percapita GDP by 2100 in lost agricultural production,
health risks, flooded cities, and other major
disruptions.
GLOBAL ENVIRONMENTAL MANAGEMENT-
SUSTAINABLE DEVELOPMENT
Sustainable Development

“Is the development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs”

-World Commission on Environment and Development (WCED)

The Concern about sustainable development is
paramount because….. (The Challenges)

Natural resources are depleting more in the developing countries

because of:
1. High pressure of population

2. Increasing poverty

3. Exploitation of natural resources to meet the immediate resource needs like fuel.

4. Natural capital (the sum total of nature's resources) is used up faster than it can be
replenished.

5. Increase in use of technology in the production process & agriculture.

What does being “GREEN” imply?
What is “Sustainability”??

• Sustainability is meeting “the needs of the present

without compromising the ability of future
generations to meet their own needs.” This is a
commonly referenced definition, developed by the
Norwegian prime minister Gro Harlem Brundtland
for the 1987 report “Our Common Future,” produced
by the World Commission on Environment and
Development under the direction of the United
Nations.
What Does It Mean to Be Green and Is That the
Same as Sustainable?
• And what does “green” mean and how does it relate to
sustainability? Green is a term widely used to describe
buildings, products (of all types, including cars, food,
computers, etc.), and services designed,
manufactured, or constructed with minimal negative
impact on the environment and with an emphasis on
conservation of resources, energy efficiency, and
product safety. Being “green” can help to preserve and
sustain society’s resources.
Dimensions of Sustainable development :
The Triple Bottom Line

• Triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with three
parts: social environmental, and financial.

• In traditional business accounting and common usage, the "bottom line" refers to either the
"profit" or "loss", which is usually recorded at the very bottom line on a statement of revenue and
expenses.

• Over the last 50 years, environmentalists and "social justice" advocates have struggled to bring a
broader definition of bottom line into public consciousness by introducing full cost accounting
method.
Three Elements of the Triple Bottom Line

• Economy – Economic variables ought to be variables that deal with the bottom line and the flow of money. It
could look at income or expenditures, taxes, business climate factors, employment, and business diversity
factors.

• Society - Social variables refer to social dimensions of a community or region and could include
measurements of education, equity and access to social resources, health and well-being, quality of life, and
social capital.

• Environment – Environmental variables should represent measurements of natural resources and reflect
potential influences to its viability. It could incorporate air and water quality, energy consumption, natural
resources, solid and toxic waste, and land use, would help organizations identify the impacts a project or
policy would have on the area.
Some quick triple bottom line facts

• The triple bottom line is a transformation framework for businesses and other
organizations to help them move toward a regenerative and more sustainable
future.
• Tools within the triple bottom line help to measure, benchmark, set goals,
improve, and eventually evolve toward more sustainable systems and models.
• The triple bottom line illustrates that if an organization is only focused on
profit—ignoring people and the planet—it cannot account for the full cost of
doing business and thus will not succeed in the long term.

(Source:- https://sustain.wisconsin.edu/sustainability/triple-bottom-line/)
McDonald’s - A Case of (Sustainable) Packaging
Doing Well and Doing Good
•Companies that act with enlightened self-
interest are also commonly referred to as
doing well (for themselves) at the same time
that they are doing good (good things for
others), or “doing well by doing good.”
The BP Oil Case Study

• The BP Gulf of Mexico

situation highlights why
sustainable business is of
increasing interest and
importance to students of
business and also students
in science, government,
public policy, planning, and
other fields.
Source: Wikimedia, http://commons.wikimedia.org/wiki/File:BP_Oil_spill_Chandeleur_IslandsLA.jpg.
Some Links on Sustainability
• https://www.forbes.com/sites/jeffkauflin/2017/01/17/the-worlds-most-
sustainable-companies-2017/#2ed7809d4e9d

• https://economictimes.indiatimes.com/small-
biz/startups/features/move-over-elon-musk-this-indian-couple-is-
harvesting-solar-energy-using-an-umbrella-
thinkphi/articleshow/61910683.cms

• https://www.kimberly-clark.com/en-us/responsibility/sustainability2022
(Link to Kimberly Clark Sustainability Report 2022)
Sustainable Development for Business

• Sustainable development for business means

“adopting business strategies and activities that meet the needs of the
enterprise and its stakeholders today while protecting, sustaining, and
enhancing the human and natural resources that will be needed in the
future” (International Institute for Sustainable Development 1994: 4).

• Sustainable business has interdependent economic, environmental, and social

objectives (Triple Bottom Line)

• Long-term viability depends on integrating all three objectives in decision-

making
Some Global Initiatives for Sustainable Development
Global Reporting Initiative (GRI)

What is GRI?
The Global Reporting Initiative (GRI) is a leading organization in the sustainability
field. GRI promotes the use of sustainability reporting as a way for organizations
to become more sustainable and contribute to sustainable development.
Global Reporting Initiative (GRI)

•This framework sets out the principles and indicators that organizations can use to measure
and report their economic, environmental, and social performance.
•It produces one of the world's most prevalent standards for sustainability reporting — also
known as ecological footprint reporting, environmental social governance (ESG)
reporting, triple bottom line (TBL) reporting, and corporate social responsibility (CSR)
reporting. GRI seeks to make sustainability reporting by all organizations as routine as, and
comparable to, financial reporting. www.globalreporting.org/
•
Examples of “Profitable Sustainability” Wal-Mart
Dow Jones Sustainability Indexes

• Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the sustainable
performance of the leading financial-driven companies worldwide.

• The identification of sustainability leaders for the Dow Jones Sustainability Indexes is based on the Corporate
Sustainability Assessment of SAM Research (Sustainable Asset Management).

• A defined set of criteria and weightings is used to assess the opportunities and risks deriving from economic,
environmental and social developments for the eligible companies.

• A major source of information is the SAM questionnaire which is completed by companies participating in the annual
review.

• The external assurance report by Deloitte ensures that the corporate sustainability assessments are completed in
accordance with the defined rules.

• Based on SAM Research's corporate sustainability assessment companies are ranked within their industry group and
selected for the Dow Jones Sustainability Indexes, if they are among the sustainability leaders in their field.
Carbon Disclosure Project
The Carbon Disclosure Project is an independent not-for-profit
organization holding the largest database of primary corporate climate
change information in the world.

Thousands of organizations from across the world’s major economies

measure and disclose their greenhouse gas emissions and climate
change strategies through CDP.
UN Global Compact

• The UN Global Compact is a strategic policy initiative for businesses that are committed to
aligning their operations and strategies with ten universally accepted principles in the areas of
human rights, labor, environment and anti-corruption.

• the Global Compact is a practical framework for the development, implementation, and
disclosure of sustainability policies and practices

• The UN Global Compact's ten principles in the areas of human rights, labor, the environment and
anti-corruption enjoy universal consensus.

https://www.unglobalcompact.org
Benefits of Sustainable Operations

• Greater operational efficiencies; e.g., eliminate wasteful practices

• Cost reduction

• Quality image

• Positive publicity

• Opportunities for new and growing markets >incremental revenue

• Conservation of the environment

• Respect from the local community

• Staff loyalty
Role of Business in Environment degradation:
Implications for the Private sector
• 45% of Consumers are willing to pay more for a product “from a
company known for being environmentally friendly,” & this percentage
is highest among younger consumers.
• 25% of Walmart operations are powered by renewables, and the
company claims that from 2005 to 2016 its stores reduced energy use
by 20% for a total savings of $1 billion.
• In response to NGO accusations that McDonald’s was contributing to
deforestation, the company spearheaded industry industry-wide
efforts to preserve the Amazon rainforest.
• Unilever helped to found the roundtable for Sustainable Palm Oil
• Kimberley Clark committed to sourcing 50% of wood fiber from
natural growth forests by 2025.
• For example allegations that Nike’s factories were polluting local
water ways were a major factor in persuading the firm to invest
heavily in sustainability. Nike now employs more than 135 people
in its sustainability group, and has publicly committed to a range of
aggressive targets in the area. Similarly some years ago Greenpeace
accused both McDonalds and Kimberly Clark of contributing to
deforestation (of the Amazon and of old growth forest in the US,
respectively). In response McDonalds took the lead in spearheading
industry wide efforts to preserve the Amazon, and both firms have
committed to sourcing policies that promise to steadily increase the
environmental sustainability of their supply chains.
EXAMPLES FROM INSURANCE SECTOR
• Firms like Swiss Re and Prudential have incorporated CLIMATE CHANGE into their
product offerings, for example with “pricing plans that account for potential
climate impacts like storms and fires” or by declining to offer policies for
properties at risk of coastal erosion attributable to CC.
• Similarly, some companies have responded by including a carbon price in
calculations used to make investment decisions.
• In 2016, 437 large companies reported using “internal carbon prices”(up from 150
in 2014) and 583 more stated that they intended to implement internal carbon
pricing by 2018.
• For example, in 2012 Microsoft began charging individual business groups that used
Microsoft services for their carbon use- by 2014 , the internal carbon price
completely offset Microsoft’s energy consumption, reducing GHG emissions by 7.5
million tons and saving the company over $10 million.
• Carbon is expected to Converge at $140 per ton of CO2 by 2030 and
$400 by 2050. In a 1.5-degree scenario, these costs would be
considerably higher.

• Between 2007 and 2015, ExxonMobil contributed $1.87 million to

politicians who deny CC and an additional $454,000 to the American
Legislative Exchange Council , a corporate lobbying group that impedes
efforts to fight CC.
• Charles and David Koch, whose businesses generate $100billion in
annual revenues from fossil fules, have spent nearly $88 million to deny
CC and block regulations.
• CC denier organizations often follow a multi-pronged strategy that involves
objecting to scientific data, funding seemingly academic front organizations,
promoting “scientific spokespeople,” declaring the need for more research
regardless of the consensus, and lobbying with Government officials to prevent
regulations.

• A Union of Concerned Scientists (UCS) report found that many of these tactics (and
some of the people) were borrowed from the tobacco industry’s earlier attempts to
cast doubt on the scientific proof that smoking led to Cancer.
• 40-60% of the current market value of the oil and gas sector may be at risk and
noted that the top 200 companies in the sector have a total market value of $4
trillion.
EXAMPLE OF COCA COLA

• Coca Cola’s engagement with the question of water scarcity is

another striking example. Nearly ten years ago Coca Cola –
whose brand is estimated to be worth more than $77bn, nearly
half of the firm’s entire capitalization -- was accused by Indian
activists of depleting local water Suppliers and was the target of
widespread local action and global criticism as a result. While the
firm disputed the accuracy of the underlying charges; it has since
launched a major effort focused on water, announcing a
commitment to become “water neutral”.
Mitigation and Adaptation: the Opportunities
• As per data from Bloomberg New Energy Finance, in 2015 total
investments in Clean Energy reached a global record of $280billion,
more than six times the 2004 total figure.
• New Solar and Wind energy composed about half of all new energy
generation.
• In 2015, only 5,50,000 new electric cars were registered world-wide,
less than 1% of the total of 66 million passenger cars sold. (Electric Cars
projected to grow rapidly in the next 25 years)
• By 2022, Electric vehicles are expected to be at price parity with
conventional internal-combustion cars. (with price of batteries
dropping)
Mitigation and Adaptation contd….
• In 2015, Tesla Motors (the leading American Electric Vehicle Company) had
sales of $4 billion and in June of the same year, its revenue was half that of
GM – a firm whose sales were $152 billion.
• In Urban Planning and Infrastructure, so-called “smart city” solutions might
help urban centers reduce carbon emissions and be more energy efficient.
(Example- Denmark operates district heating schemes – essentially use of
large boilers that produce heat from whole neighbourhoods through a
network of pipes)
• One Engineering Firm estimated that in London, recapturing wasted heat
could power 70% of the city’s heating needs.
Examples from Industry, Manufacturing &
Construction
• Schneider Electric, a $29 billion revenue global energy giant, recently
repositioned itself as the “global specialist in Energy Management”,
aiming for 75% of its product revenue to be derived from products
featuring its”Green Premium” Trademark Eco-label.
• The energy efficient light bulb business is now a $170+ billion industry,
while Johnson Controls had 2015 revenue of over $10.5 billion in its
building efficient business.
• In Agriculture, firms that specialize in technologies to increase water
supply or to increase its usage efficiency are expecting significant
market expansion.
• The Micro-irrigation market was valued at $1.9 billion in 2013 and is
projected to grow at a CAGR of 17.2% from 2014 to 2019.
LOOKING TO THE FUTURE
Climate Change is a Systemic issue that has far-reaching consequences
for global health, security, and prosperity.

WHAT ROLE SHOULD PRIVATE SECTOR PLAY IN DRIVING CHANGE??

Environment Impact
Assessment
It is an assessment of the possible impact
positive or negative, that the proposed
project may have on environment.
Environment Impact Assessment (EIA)

• It is an assessment of the possible impact

positive or negative, that the proposed project
may have on environment.
EIA Objectives

• An EIA identifies problems, conflicts and natural resource

constraints which might affect the viability of a project.

• It also predicts how the project could harm to people, their

homeland, their livelihoods, and the other nearby developmental
activities.

• After predicting potential impacts, the EIA

identifies measures to minimize the impacts and suggests ways to
improve the project viability.
An EIA should meet at least three core values:

• Integrity: The EIA process should be fair, objective, unbiased and balanced.

• Utility: The EIA process should provide balanced, credible information for decision-
making.

• Sustainability: The EIA process should result in environmental safeguards.

EIA

EIA comes from

• S.102(2) of National Environmental Policy Act, 1969,
USA.
In India
• EIA came into existence around 1978-1979.
• It was made mandatory only in 1994.
 UNCED (United Nations Conference on Environment and
Development,
The Earth Summit, Rio de Janeiro,1992
Principle 17 of the RIO DECLERATION, 1992
states
“EIA as a national instrument shall be undertaken
for proposed activities that are likely to have a
significant adverse impact on the environment,
and are subject to a decision of a competent
national authority”
EIA Prior to 1994

• EIA clearance for crucial projects like power stations,

irrigation projects, river valley projects, etc. was given by
Union Ministry of Environment and forests (UMEF).
• This clearance was given after carefully examining the
information given by the project authorities in the form of
questionnaires and checklists.
• Even when cleared the project was subject to several
safeguards and conditions specified in the clearance.
Notifications Issued

• UMEF issued a notification dated 27th Jan, 1994

under which EIA was made mandatory in respect of
29 specified projects.

• By notification dated 9th Oct,1996 the central

government has constituted a body called the
“Environmental Impact Assessment Authority for the
national capital region”
Notification issued on 14th Sept, 2006.
• Under the notification issued on 14th Sept, 2006 EIA clearance has been made mandatory for 39
projects and activities listed in the schedule to the notifications for instance
• Mining of minerals
• River valley projects
• Thermal power plants
• Nuclear power plants
• Cement plants
• Petroleum refining industry etc.
1) Under this notification, prior environmental clearance from the concerned regulatory
authority is required before construction or even preparation of land(expect acquiring
the land)by project management is started.
2) So also expansion and modernization of existing projects or activities listed in the
schedule beyond specified threshold limits fall within the scope of such mandatory EIA
clearance
Under the schedule to notification
All projects and activities are broadly categorized into
Category A B

Environmental Clearance UMEF State Environment Impact

(including their expansion and Assessment Authority (SEIAA)
modernization

Recommendation Expert Appraisal Committee State level Expert Appraisal

(EAC) committee(SEAC)
Environmental categorization of projects
Category A Category B Category C

• Projects with • Projects with • Projects unlikely to

significant adverse adverse have an adverse EI or
environmental environmental those that will
impact impact but of a improve the
• Require full EIA lesser degree and /or environment
significance than • EIA not normally
category A impact required
• IEE will determine • Categorization is
which issues the EIA based on the
should address. conclusions of IEE
• If needed will be
upgraded to category
A depending on the
assessment
Applications

• Applications for such prior environmental clearance are to be made in

the prescribed form giving all the prescribed details.
• The application is to be accompanied by copy of the pre-feasibility
project report.
• In the case of construction project the application is to be sent with a
copy of the conceptual plan in place of pre-feasibility report.
EIA Clearance

• Deliberate concealment and/or submission of false information in

application makes the application liable for rejection.

• How ever if in such case the clearance has already been obtained the
clearance is liable to be cancelled.

However before such rejection or cancellation the applicant must be given a personal
hearing and the principle of natural justice should be followed.
Validity of EIA Clearance

• An EIA Clearance once given once given

• Is valid for the period of 30 years in case of mining projects.

• 2 years in case of river valley projects.

• 5 years in case of all other projects & activities.

After EIA Clearance is given

• The project management has to submit in hard copies and soft copies-
half yearly compliance reports in respect of the terms and conditions
attached to the clearance on 1st june & 1st dec every year.

• Such compliance reports are declared to be public documents and must

be given to any persons who applies for the same.

• Such reports are also to be put up on the website of the concerned

regulatory authority.
Appeals

• It must be noted that any person aggrieved by an order granting

environmental clearance to a project or activity can file appeal to the
authority established under The National Environment Appellate
Authority Act,1997.

Interestingly the authority can hear appeals only in cases where an

environmental clearance is granted not in cases where such clearance is
refused.
CASE STUDY- NAVI MUMBAI INTL.AIRPORT
(NMIA)
ENVIRONMENTAL IMPACT ASSESSMENT
ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR
NMIA
• An airport project is treated as a Category “A” project
(CESE, IIT Mumbai 126) which requires environmental
clearance from the Ministry of Environment and Forests
(MoEF). An Environmental Impact Assessment (EIA) study is
a primary requirement for this clearance and has been
prepared by The Centre for Environmental Science and
Engineering at the Indian Institute of Technology (IIT),
Mumbai.
• EIA covers a radius area of 10 km around the Airport site.
PURPOSE OF EIA

v The EIA Study was carried out to ensure that the Project is Environmentally
sustainable and has recommendations for preventing, minimizing, mitigating and
compensating for the adverse impacts on the environment and affected population.

vThis would ultimately assist in the Decision-making process to achieve a sustainable

development.

vIMPACT PARAMETERS - Atmosphere, Land, Ground Water, Habitat and Communities,

Aesthetic and Cultural Factors, Geology, Coastal Zone Regulations, Noise Pollution,
Surface water, Species and Population, Socio-Economic Factors, Health & Safety,
Hydrology & Land Use.
• The focus areas for analysis in EIA are:
vChoice of alternate sites;
vResettlement and rehabilitation of project affected people- This
is a big component & will have the maximum Impact.
vImpact on the watershed; and
vProcess of project clearance.
Some Useful Links (EIA of NMIA)

Link to the news on environment ministry gives clearance to navi

mumbai airport project-
• http://netindian.in/news/2010/11/22/0008779/environment-
ministry-gives-clearance-navi-mumbai-airport

Link to News- Phase 1 of Navi Mumbai airport may overshoot

December 2019 deadline

• https://www.livemint.com/Politics/gW1sd4Em9xsVzOICaNvv0O/Phase
-1-of-Navi-Mumbai-airport-may-overshoot-December-2019-d.html
Strategic environmental assessment:

• Strategic Environmental Assessment (SEA) refers to systematic

analysis of the environmental effects of development policies,
plans, programs and other proposed strategic actions.

• SEA represents a proactive approach to integrating environmental

considerations into the higher levels of decision-making - beyond
the project level, when major alternatives are still open.
SEA – An example of the city of Amsterdam
SEA ALLOWS FINDING COMPLETELY NEW SOLUTIONS: City of Amsterdam (Netherlands)
experiences serious deficit of the territories necessary for its extension. The main goal of
city development plan19 was to find residential area for people working in the town, which
would be close enough, so that this people would be able to reach center either by public
transport, or by bicycle. The planners found such territory. The problem was that this
territory was occupied by the shallow freshwater lake, which was included into the
international wetland’s list, and, being important migrant bird rest, feeding and
reproduction point, is protected by the Ramsar Convention. Besides this, the lakeside
represented the part of Ziuder-Zee, oldest dam in Netherlands, thus, having the historical
value. Therefore the goal of SEA was to assist developers in drawing up environmentally
sound alternative plan. The group of developers and environmentalists worked several years
seeking for such alternative. Finally, the new, similarly acceptable for human and water
birds, model has been developed: it was decided to create the send island archipelago, the
banks of and canals between which would still be sufficient for providing migrant birds with
food and shelter, and, at the same time, the islands would provide residential space for
45,000 persons. This plan was submitted to referendum and approved in 1997.
SEA ALLOWS AVOIDING ERRORS Argentina, with the assistance of World
Bank, developed about 50 individual projects for protection of the
settlements and agricultural lands located in 3 river basins. Joint SEA of
these projects demonstrated that projects developed for one of the
basins were lacking coordination component. It is obvious that improper
upstream management can cause significant damages to downstream
users. These factors were taken into consideration, and the projects
were timely corrected.
SEA ALLOWS AVOIDING CONFLICTS: Naissaar Island21 located in Gulf of Finland, nearby city of
Tallinn (Estonia) is declared a natural park. In the soviet times, the island was used as closed
military base. Soviet militaries left the territory in extremely polluted condition. At the
same, though the island is presently uninhabited, former proprietors claimed ownership
rights over the island. Municipality started seeking the island development options, which
would allow, on the one hand, protecting respective environmental requirements for parks
and, on the other hand, avoiding conflict with the former landowners. Development plan and
its SEA were being developed simultaneously. Active participation of all the parties concerned
(these, in the first place, were former landowners and environmental organisations) in the
process was ensured. They were given possibility to reveal the problems, participate in their
assessment and prioritisation. Five alternative ways of island development were considered
(see page 21). Finally, the alternative acceptable for all the parties has been selected:
supporting development of medium tourist and recreational business on the island (by the
way, the missiles were not removed from the island – they were retained as one additional
source for attraction of tourists). It is noticeable that local government was very satisfied
with the process. In its opinion, the fact that SEA was performed in parallel with planning
process, has significantly accelerated plan approval and decision-making.
Project Cycle: The generic project cycle has six main
stages:

• Project concept
• Pre-feasibility
• Feasibility
• Design and engineering
• Implementation
• Monitoring and evaluation assess
Project Life Cycle with respect to EIA

• It is important to consider the environmental factors on an equal

basis with technical and economic factors throughout the project
planning, assessment and implementation phases.
• Environmental consideration should be introduced at the earliest in
the project cycle and must be an integral part of the project pre-
feasibility and feasibility stage.
• If the environmental considerations are given due respect in site
selection process by the project proponent, the subsequent stages of
the environmental clearance process would get simplified and would
also facilitate easy compliance to the mitigation measures throughout
the project life cycle.
Project Life Cycle with respect to EIA

• A project's feasibility study should include a detailed assessment of

significant impacts and the EIA include a detailed prediction and
quantification of impacts and delineation of Environmental Management Plan
(EMP).

• Findings of the EIA study should preferably be incorporated in the project

design stage so that the project is studied, the site alternatives are required
and necessary changes, if required, are incorporated in the project design
stage.
• This practice will also help the management in assessing the negative
impacts and in designing cost-effective remedial measures.
Introduction to Social Issues

• IS THERE A CONNECT BETWEEN SOCIAL PROBLEMS &

BUSINESS GROWTH OF ORGANIZATIONS OR MNCs
(Indian/ Foreign)???

• IN WHAT WAY???
Definition of Social Problem(s)

• A social problem is “a problem in human relationship which seriously

threatens society itself or impedes the important aspirations of many
people.” (E. Raab and G.J.Selznick.)

• Serious Aspect is that Businesses are oblivious of the adverse Impact

they are having on Society (Especially the Developing Economies)
further deepening and worsening the problem but not taking adequate
steps to mitigate those impacts….
What are the Social Issues/ Problems

• Population problems, Imbalance in Sex Ratio,

casteism, untouchability, regionalism, linguism and
communalism, beggary, unemployment, poverty,
labour problems, rural problems, problems of
industrialization and urbanization, prostitution,
crime, suicide, juvenile delinquency, youth tensions
and student unrest and finally the problems of
democracy.
An Ever Imposing & Serious Social Problem

• The overall sex ratio (OSR) at nationwide (the number of females per
1000 males) in 2011 Census has improved by seven percentage points to
940 against 933 in census of 2001. This is the highest sex ratio at the
national level since census of 1971 and a shade lower than
1961.However, the area of grave concern remained the lowest ever
child sex ratio(CSR) of 914. The provisional data in 2011 Census showed
that the child sex ratio (0 to 6) come down to 914 females per 1000
males against 927 in 2001 .It showed a continuing preference for male
children to female children in the last decade. Rapid decline in child sex
ratio is a serious problem with severe socio-economic, demographic and
cultural implication.
GE Case study on Ultrasound machines & Child
Sex Ratio Imbalance

• https://www.livemint.com/Home-Page/gDxT3iyzd71Ubr9VegEsQP/Skewed-sex-
ratio-puts-GE-in-the-spotlight.html

(Summary- This case study details the problem around the ever declining Child Sex
Ratio & the role played by GE in further worsening the problem)
Responsibility of Business in Social Degradtion
Findings from a Research paper titled – “A critical examination of the social impacts
of large multinational corporations in the age of globalization.”

• Giant MNCs have benefited from favourable conditions in the past three decades
and currently dominate the global scene. In general, the rising corporate profits
come not to the benefit, but to the detriment of workers. Large MNCs benefit from
their immense resources to develop sophisticated competitive advantages against
smaller rivals. They impede small entrepreneurs from scaling up their operations
and increasing their market shares. Furthermore, large MNCs often take advantage
of their power to shape national and international policies in ways that enable them
to enhance their profitability. Overall, large MNCs aggravate the rising economic
inequality in different ways, thus contributing to social and financial instability.
Furthermore, large MNCs erode state sovereignty and enormously contribute to
environmental degradation.
(Source- https://www.emerald.com/insight/content/doi/10.1108/cpoib-01-2019-0001/full/html?skipTracking=true)
 List of Useful Links….. (Module I)
• https://www.youtube.com/playlist?list=PLw4bKChGXwK9AzmGWBhKETElm0x3f6ZQr
•
• https://www.facebook.com/What.If.science/videos/2483409321884373/
• https://inhabitat.com/top-6-environmental-issues-for-earth-day-and-what-you-can-do-to-
solve-them/
• https://inhabitat.com/nine-chinese-cities-more-polluted-than-beijing/
• https://www.seventhgeneration.com/
• https://timesofindia.indiatimes.com/city/nagpur/Radiation-from-mobile-towers-affect-birds-
MoEF-study/articleshow/10487141.cms
• Changes in global temperature, NASA:
• https://climate.nasa.gov/vital-signs/global-temperature/
• Global Footprint Network:
• http://www.footprintnetwork.org/en/index.php/GFN/
• The water crisis:
• http://news.bbc.co.uk/2/hi/science/nature/7821082.stm
Some Useful Links Contd…..
• Naomi Klein, This Changes Everything (2014):
• http://www.truthdig.com/arts_culture/item/one_way_or_another_everything_changes_20140917
• Climate Change and Human Security (a European Union report, 2008):
• http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/reports/99387.pdf
• Intergovernmental Panel on Climate Change:
• http://www.ipcc.ch/#
• CAIT Climate Data Explorer
• https://www.wri.org/resources/data-visualizations/cait-climate-data-explorer
• https://cait.wri.org/ (Very Important for Climate Change)
• Need for a Revolution:
• http://billmoyers.com/segment/wendell-berry-on-his-hopes-for-humanity/
• ON CLIMATE CHANGE
• https://youtu.be/iw2AHyMmGT8
• https://www.youtube.com/watch?v=y2euBvdP28c
THANKYOU!