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

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SUSTAINABLE MANAGEMENT
THE NEED OF THE HOUR

2. Sustainable Management
Agenda for today
1. What and Why
2. How to achieve sustainability?
3. The Apple and Elysis example
4. Cost and feasibility
5. Evaluation of Sustainability
6. Pros & Cons of sustainable management
7. Conclusion
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3. Sustainable Management
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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
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“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
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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
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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.
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11. Cost and feasibility
Cost
• How much financial resources are
consumed?
• Will the long term-benefits outweigh
the above consumption?
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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
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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
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14. 1) Environmental:
● Carbon emission and Climate change
● Energy Efficiency and Renewable energy
● Biodiversity and Conservation
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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
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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
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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
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