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10-Year Sustainability Strategy

10-Year Sustainability Strategy. Aspen Business and Society Case Competition, 2010 Stefan Baumeister Cécile Fontaine Jarno Laitinen Benjamin Toscher. Contents of the presentation. Tata’s Rich History in Sustainability The Challenges Tata is Facing Recommendations

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10-Year Sustainability Strategy

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  1. 10-Year Sustainability Strategy Aspen Business and Society Case Competition, 2010 Stefan Baumeister Cécile FontaineJarno LaitinenBenjamin Toscher

  2. Contents of the presentation • Tata’s Rich History in Sustainability • The Challenges Tata is Facing • Recommendations • 10-year Sustainability Strategy • Value Creation Through Sustainability • Strategic Conclusions

  3. Transition in TATA CSR:FromIdeology to CorporateGovernance ? TCS to DJSI Carnegie medal TATA Human Index Schools For Children GRI Code Of Conduct Steel #90th WEF ? Sustainability Welfare Dept. TQMS Eight Hour Day Leave With Pay Profit Sharing Voluntary TCCI Foundation building Consolidation period Expansion Leadership 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

  4. Environ-mental Accounta-bility Sphere of Sustainability Respect for human rights Design for excellence (DfX) Business morals Corporate social entrepre-neurship Setting new standards Trans-parency Charity Social Economic SUSTAINABILITY LEADERS SR, ISO 26000 Respect of int’l norms of behavior Ethical behavior SUSTAINABLE DEVELOPMENT Respect of the rule of law Respect of stakeholder interest

  5. Challenges • CS Traditions vs. CS Expectations • Managing Environmental Impacts • Becoming a Global Company – Transparency & Accountability • Philanthropy vs. Profit • Deriving Value from Sustainability

  6. Recommendations for change • Building TQMS to QEEC - the Quality and Environmental Excellence Centre • TCCI is made mandatory • Mandatory group-wide EMS and OHS • Tata Sons goes public • Philanthropic activities continue through Tata Trusts

  7. QEEC – Structure and value • QEEC uses existing management systems to improve Tata groups environmental performance • Promotes a closed loop corporate ecosystem, by identifying connections in: • Energy • Material • Knowledge • Creates opportunities for high-growth ventures • External consultancy • Spin-off’s • Radical Innovations

  8. 10-Year Sustainability Strategy Pillar of Sustainability Global Coordinator TCCI QEEC Tata Financial Services Social Environmental Economic

  9. Capturing Value Model Financial Value Tata Sons interests in group companies Knowledge Value QEEC projects, high-growth ventures Operational Value Access to emerging markets Brand Value Image in India and abroad

  10. Design and Review Phase Value Captured Strategic Need – Example Action Task Brand Financial Operational Knowledge Reinforcing Tata values – TCCI made mandatory Building culture of organizational learning – QEEC begins learning organization project (LOP): “Best Practices in EMS” Sense feedback from key stakeholders – LOP: “Financial adv. of attracting SRI” and start negotiations with Tata Sons shareholders

  11. Implementation Phase Value Captured Strategic Need – Example Action Task Brand Financial Operational Knowledge Enhancing Tata Sons financial capabilities and competitiveness – Tata Sons issues equity, marketed to SRI funds Harvest value from knowledge generation – QEEC achieves group wide saving through excellence programs on life-cycle thinking, reverse logistics and product innovation Unifying the image of TATA as the global leader in corporate sustainability – Global PR-campaign “Being the Change”

  12. Operation phase Value Captured Strategic Need – Example Action Task Brand Financial Operational Knowledge Preserving Tata’s historical values - Recognition on SRI indices Translating sustainability problems to global business opportunities – QEEC launches high growth ventures building financial value in developed and developing markets Continuously developing Tata group companies sustainability performance – TCCI reveals group-wide knowledge database in TCCI annual workout

  13. Value through sustainability • Operational Value US$ 5 billion • Financial Value US$ 64 billion • Brand Value US$ 11 billion • Knowledge Value US$ 20 billion • Tata Sons Total Value, US$ 110 billion under the 10-year strategy

  14. Strategic Conclusions • Tata Sons goes public to • Advance openness and accountability • Expand capital base and deleverage • Compete as a global company • Philanthropy continues through the trusts, • All shareholder interests are aligned in long term • Trusts maintain majority ownership in Tata Sons • The strategy’s implementation is driven by • Operational plan incrementally building corporate culture and governance • Continuous value creation generating business momentum

  15. “Being the change”

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