What is Sustainable Management and the factors that play a key role

The very basics of what sustainable management is and the key factors that influence it

1. 1 SUSTAINABLE MANAGEMENT THE NEED OF THE HOUR

2. Sustainable Management Agenda for today What and Why How to achieve sustainability? The Apple and Elysis example Cost and feasibility Evaluation of Sustainability Pros & Cons of sustainable management Conclusion 2

3. Sustainable Management 3 Source: Sustainable development | Clipart Panda - Free Clipart Images Incorporating environmental, social, and economic considerations into the decision-making processes of organizations Balancing short-term goal with long-term sustainability Navigating the Path to Responsible and Resilient Business

4. Need for Sustainability Environmental Preservation Social Responsibility Economic Resilience Reputation and Trust 4 “Sustainability is not a trade-off; it's a trade-on” - Jeff Seabright Innovation and Competitiveness Long-Term Prosperity Legal and Regulatory Compliance Global Collaboration

5. 5 How to achieve sustainability?

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7. APPLE INC. Apple is one of the best examples for carrying out sustainable practices in the industry. Apple is undergoing a rapid transition , incorporating sustainable practices into their business and product lines and they are currently being carried out in the following avenues: Usage of Recycled materials Sustainable Packing Eco-friendly Shipping Industrial Collaboration 7

8. • 96% of Apple’s products are recycled and employs responsibly sourced wood fiber thereby eliminating 1134 metric tonnes of plastic. • Apple products are also free from Arsenic, Beryllium, Mercury and PVC which are harmful. • Their recent transition to Apple Silicon chips in Macbooks led to a 50% reduction in the carbon footprint. • 25% of their electricity requirements for manufacturing are also from supplier clean energy products. •Antennae lines made with upcycled plastic in place of non metallic minerals 8

9. 9 Source: 911Metallurgist | Vice

10. ELYSIS • Elysis is a joint venture between Rio Tinto, world’s second largest metal and mining corporation and Alcoa , world’s fifth largest Aluminium manufacturer. • This venture focuses on the carbon free smelting technology method invented by Alcoa. • Aluminium makes up 24% of the iPhone’s mass followed by Iron, Cobalt, Copper and other rare earth elements • Apple is a early investor in this joint venture investing around 4.7 billion since 2016. 10

11. Cost and feasibility Cost • How much financial resources are consumed? • Will the long term-benefits outweigh the above consumption? 11 Feasibility • Is the decision taken practical or feasible given the limited resources? • What are the barriers and risks associated with it?

12. Example of cost and feasibility: IIM Indore Cost Initial investment is high but helps to save resources (papers) Sustainable over a long term as resources are completely digital 12 Feasibility Well established IT Infrastructure, thus easy to integrate Operational issues (face not recognizing) might be a barrier Implementing facial recognition system

13. Evaluation of Sustainability Mainly judged on 3 parameters : Environmental, Social and Governance (ESG) Common Frameworks: ESG Ratings and Rankings : MSCI, Sustainalytics, and CDP Dow Jones Sustainability Index : Measured as a relative index with respect to industry peers Carbon Disclosure Project : Assessed by CDP on the efforts put by companies to reduce carbon emissions after companies disclose their environmental data UN Global Compact : Companies align with UN global principles and take measures over human rights, labor, environment, and anti-corruption. Why do companies focus on the evaluation? Ethical Investing and Socially Responsible Investment (SRI) Screens: Investors apply ESG criteria when making investment decisions. Corporate Social Responsibility (CSR) Initiatives: Companies develop CSR programs that encompass philanthropic efforts and hence showcase a positive work environment for employees through these ratings 13

14. 1) Environmental: Carbon emission and Climate change Energy Efficiency and Renewable energy Biodiversity and Conservation 14 3) Social: Diversity and Inclusion Labour practice and Human rights Product safety and Quality 2) Governance: Shareholder Rights Corporate Governance Policies Ethical Business Practices Factors of Evaluation

15. Pros & Cons Reduce reputational risk Employee engagement Resonance with specific segment of customers New growth opportunities Cost reduction 15 97% of industry CEOs said that sustainability is critical for the future success of their business (The UN Global Compact- Accenture Strategy CEO Study 2016 ) Governance activities are disconnected from the mainstream agenda Lack of formal address Availability of technological resources

16. Conclusion “The blind pursuit of profit at all costs is untenable. It is essential that we make money the right way. After all, if communities suffer as a result of a company’s actions, those returns are not sustainable” Indra K. Nooyi, Pepsico 16

17. References Hoffman, J. A. (2001). From Heresy to Dogma: An Institutional History of Corporate Environmentalism. Stanford University Press. Reinhardt, L. Forest. (2007). “Bringing the Environment Down to Earth,” Harvard Business Review on Green Business Strategy (41-64). United States of America: Harvard Business School Publishing Corporation. Muthuri, J. N., & Gilbert, V. (2011). An institutional analysis of corporate social responsibility in Kenya. Journal of Business Ethics, 98, 467–483. Hirsh, S. (2020, July 31). Will Apple’s “carbon-free” aluminum actually make a difference? Green Matters. https://www.greenmatters.com/p/apple-carbon-free-aluminum Administrator. (n.d.). About Green Project Management what is Sustainable Project Management? what are we? meet our team the GPM Executive Team Office locations United Nations Global Compact Our Sustainability Communication on Progress Reports Policies Code of Ethics Supplier Code of conduct human rights, anti-trafficking, and Human Slavery Policy Privacy Policy Global Data Protection Policy (GDPR) logo use policy strategic alliances contact US . Home. https://greenprojectmanagement.org/about/what-is-sustainable-project-management 17