Sustainability

Role of standards
Santhosh Jayaram

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Niyat, Neeti and Nyaya Niyat

Inner Convictions Intentions

Nyaya
Justice Delivered

Neeti
Codes, Instruments, Institutions, Norms
Sustainability

Adapted from the book, titled The Idea of Justice - Amartya Sen.

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Its a jungle out there

Guiding principles Conventions Codes of Conduct

Management Standards
Labelling Standards Frameworks for Reporting Stakeholder Engagement standards Networks
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Guiding principles
Tend to be formulated to assist users in developing policies, strategies and management processes to address the issues relevant to their activities.

Examples: - Global Compact (UN) - Guidelines for Multinational Enterprises (OECD) - AA1000 AccountAbility Principles Standard (AccountAbility) - Business Principles for Countering Bribery (Transparency International) - Human Rights Guidelines for Companies (Amnesty International) - Principles of Corporate Governance (OECD)

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Conventions
Guiding principles (minimum standards) developed by a multilateral organisation, e.g. UN or International Labour Organisation, for ratification by member states Encourage global best practice Examples: - Universal Declaration of Human Rights (UN) - Convention on the Rights of the Child (UN) - Core Conventions on Labour Standards (ILO) - International Covenant on Economic, Cultural and Social Rights (UN) - Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD)

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Codes of conduct
Provide a list of commitments, objectives or performance criteria that an organisation is expected to achieve if it signs up to the code. Examples: - Charter Agreement on Labour Practices (Fair Labor Association) - Rules of Conduct to Combat Extortion and Bribery (International Chamber of Commerce) - Code of Labour Practices for the Apparel Industries (Clean Clothes Campaign) - The Equator Principles (International Finance Corporation) - Electronics Industry Code of Conduct

Provide a framework for organisations to follow.

Often industry-specific

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Management standards
Provide details of a process to follow to manage relevant issues. Provide more guidance on the how element of managing issues rather than the what, which is the case with the codes of conduct and guiding principles. Some provide technique for monitoring and correcting faults in e.g. environmental, health and safety processes Examples: - ISO 14001 (International Standards Organisation) - OHSAS 18001 (British Standards Institute) - SA8000 (Social Accountability International) - The Ethical Trading Initiative (ETI) - Sustainability Integrated Guidelines for Management (SIGMA) - Investors in People - ISO 26000 (but not certifiable)

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Labelling standards
Require products to meet specific criteria As result, provide the use of a label to demonstrate to consumers that the product has been produced in a sustainable way Raises credibility of claims about products Examples: - EU Eco-Label Scheme - Fair Trade - Sustainable Fisheries - Sustainable Forestry

Helps to focus the producers work with sustainability, e.g. in the supply chain

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Frameworks for reporting and verification

Guidance for organisations on external reporting and verification Principles to ensure greater credibility and accuracy in reporting Requirements for providers of assurance, so also useful for reporting organisations about external expectations to reporting Examples: - Global Reporting Initiative: Sustainability Reporting Guidelines (GRI) - AA1000 Assurance Standard (AccountAbility) - ISAE3000 (International Federation of Accountants) - Protocol for Verification of Sustainability Reporting (DNV)

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Carbon and Water

On Carbon side, in comparison, it is more evolved
ISO 14064 WBCSD/WRI protocol UNFCCC WSA Voluntary carbon standards .

On Water front it is evolving

- Central Ground Water Board (Detailed Guidelines for implementing the ground water estimation methodology) - Water foot printing manual. - ISO 14046 (expected by 2014) - Alliance for Water Stewardship (AWS) (Expected by 2013)

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Voluntary Guidelines - MCA

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SEBI supports NVG

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An earthen pot has been chosen as the logo for the ECOMARK scheme in India.

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Energy Star Rating

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License
Legislation Investor behaviour

Political concern

License to produce

Corporate strategy

License to grow

Analysts concern

Public concern

License to operate

Corporate actions

License to sell
Market consequences

Corporate profits

Non-market consequences

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