• Slide 1
  • TATA GROUP SUSTAINABILITY STRATEGY Mathew Ashley Bill OBrien Rachel Reiter Kevin Richards
  • Slide 2
  • E XECUTIVE S UMMARY Goal Develop a ten year strategy to continue Tatas profitable growth and sustainability leadership while addressing: Tatas growing global presence Evolving definitions of sustainability Increasing demand for measurement and transparency Recommendations Simplify Tatas internal definition of sustainability and articulate it through a credo Create a separate subsidiary to coordinate, communicate, and expand sustainability efforts across every business unit Establish a multi-local strategy tailored to the unique challenges and opportunities of each country and business 2
  • Slide 3
  • C URRENT S ITUATION 3 The status quo has risks Future funding is loosely defined Employee standards inequity Role clarity Overlapping efforts As Tata grows globally, how can the company preserve its unique tension between profit and purpose to meet evolving definitions of sustainability? SteelTeleComTeaInternationalConsultingHotelsMotorsPowerChemicals CSR silos are usually the norm Many independent initiatives and organizations Tata Trusts Tata Relief Committee Innometer TQMS Innoverse Annual Management Workouts Tata Protocol for Internal Assessment Tata Index for Sustainable Human Development Tata Steel Tata Power Tata Consulting Services Indian Hotels Tata Motors Tata Chemicals Tata Tea Tata International Tata Nano CII Energy Mgmt Award EMS standards EARTH Project Ongoing community service Community literacy Tata Swach (H20 purifier) Employee generation Animal husbandry Community development IIP Certification Tata Swach (H20 purifier) Measurement and transparency Inadequate stakeholder communication Innovation Center Carbon mapping Community literacy Health & wellness Recycling program Tetley Tea Rainforest Certification Ethical Tea Partnership (ETP) Combat Climate Change (3Cs) TCCI Green Globe collaboration Sustainability council Imported Coal
  • Slide 4
  • S USTAINABILITY D EFINITION & C REDO 4 Corporate Sustainability is a local, national, and global endeavor for creating long-term economic, social, and financial growth for the enterprise and its stakeholders. 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. 8)Sustainable thinking and implementation is a key skill that every future Tata manager should possess. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. The Tata Credo Sustainability Definition Corporate Sustainability (CS) is integral to value-creation in our business through the enhancement of human, natural, and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice. Goals of Tatas corporate communication on sustainability Simple and easy for employees to understand Flexible for changing and differing definitions of sustainability Creates a roadmap for employees and stakeholders Inspires new thinking for existing businesses and processes Articulates Tatas aspirations for sustainability 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. 8)Sustainable thinking and implementation is a key skill that every future Tata manager should possess. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.
  • Slide 5
  • TSS V ALUE C REATION 5
  • Slide 6
  • O RGANIZATIONAL C HART B REAKOUTS 6
  • Slide 7
  • 7 Create New Markets Internal Consultants: Facilitation & subject matter expertise Innovation Center: Creates new products or new markets for existing products Financial Planning: Funding, budgeting, agreement with shareholders Internal Audit: EVA in collaboration with TQMS Climate Change Task Force: Internal conservation across all business units
  • Slide 8
  • O RGANIZATIONAL C HART B REAKOUTS 8 Build Intellectual Capital Management Training: Rotations & development Climate Change Task Force: Grow environmental CSR Innovation Center: Improving business practices
  • Slide 9
  • O RGANIZATIONAL C HART B REAKOUTS 9 Monetize CSR Knowledge Financial Planning: External fundraising External Audit/Measurement: Outside credibility External Consultants
  • Slide 10
  • O RGANIZATIONAL C HART B REAKOUTS 10 Strengthen Brand Communications: Publicize CSR efforts in receptive markets Trust/Endowments: Protect & grow company culture of philanthropy External Audit & Measurement: Company-wide CSR report
  • Slide 11
  • O RGANIZATIONAL C HART B REAKOUTS 11 Attract & Retain Talent Trust/Endowments: Protect & grow company culture of philanthropy Management Training: Rotations & development Communications: Employee engagement Financial Planning: Employee incentives Innovation Center: Improving business practices
  • Slide 12
  • I MPLEMENTATION 12 If managed properly, TSS can address and overcome traditional barriers to implementation and common CSR challenges. A silo mentality develops (Robert Sutton) Make TSS part of BU strategic plan & operating review Incentivize BU managers TSS is under-resourced & overcommitted Project prioritization committee Budgeting process Hiding place for ineffective managers Management rotations HR training/retraining Recognize & reward success Corporate culture diluted Continue to support innovation from ground up, everyone part of success
  • Slide 13
  • M ULTI -L OCAL S TRATEGY 13 Growth opportunities should fit Tatas values while staying sensitive to economic, environmental, and social considerations in local communities. Tata Values Carbon footprint Recycling Water purification Ethical sourcing Human rights Gender rights Education Literacy Health, HIV/AIDs Fair wages Country Unites States China EU Brazil Canada Gulf CC South Africa Sri Lanka, Thailand, Vietnam Challenge & Opportunity Education, Regulations, Green investments Gov., Pollution, Human Rights, Economy Safety nets, Green Movement Deforestation, Natural resources Safety nets, Green Movement Oil rich, Cultural views, Gender roles HIV/AIDS, Developing economy Developing economy, Government stability, wages
  • Slide 14
  • I NITIATIVE E XAMPLE 14 END OF LIFE VEHICLES (ELV) PROJECT Leverage business knowledge in target markets Measure returns and costs across all businesses Coordinate business unit interactions 1) Everything we do within Tata can be re- examined through a sustainability lens. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata ELV Services Tata Credo Alignment Multi-Local Implementation TSS Facilitation of Initiative SteelInternationalMotorsPowerChemicals ELV processing is already mandatory in the EU By combining expertise across businesses, Tata can create an ELV initiative in the EU and new markets The estimated value of an ELV-processed vehicle is $267, which could be split between Tata and the customer Communication and marketing to promote initiative Secure NGO support
  • Slide 15
  • I NITIATIVE E XAMPLE 15 CSR SOFTWARE CONSULTING Finance and audit function provides measurement and transparency Develop human software in Innovation Center and through inter-company collaboration 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. Tata CSR Consulting Tata Credo Alignment Multi-Local Implementation TSS Facilitation of Initiative Leveraging Tatas CSR core competency into a sustainability software consulting practice Developing Tata Consulting Services group specializing in Enterprise Carbon Accounting (ECA) software Test and develop new market for human sustainability software Future value creation through external CSR consulting beyond software Climate change group leveraged for CO2 tracking software Seek out potential clients across existing business ConsultingSteelPowerTelecomInternational
  • Slide 16
  • E XTERNAL R ISKS 16 If implemented correctly, our recommendations can create value by anticipating outside change and giving Tata the structure and capability to continue profitable sustainability.
  • Slide 17
  • T IMELINE & A CTION P LAN 17 Next Steps Discuss TSS idea with key leaders Begin work on standards for employee equality across countries If preliminary feedback is positive, hold an offsite leadership meeting to finalize credo, TSS plans, budget, and communication strategy. Investigate initiative feasibility Investigate legal/tax/reporting implications of subsidiary Costs and Returns Initial investment for TSS and initiatives: $52M –TSS assumed to have up to 500 headcount –Total Tata 2009 investment in social initiatives: $159M (Graham, Too Good To Fail, 2010) Additional expenditures of $20M - $60M per year as staged initiatives roll out Minimum 10% return projected if Tata brand value increases by $4M per year
  • Slide 18
  • QUESTIONS?THANK YOU
  • Slide 19
  • I NITIATIVE E XAMPLE 19 ENERGY EFFICIENCY INITIATIVES Leverage business knowledge in target markets Measure savings and costs across all businesses Coordinate business unit knowledge sharing 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices Tata Energy Efficiency Initiatives Tata Credo Alignment TSS Facilitation of Initiative SteelInternationalMotorsPowerTea Tata Steel leads group on energy efficiency programs and has several innovative pilot programs Reduce its carbon footprint in existing and new markets Projected to save $3.1 million in fuel costs, savings from other energy programs $17.9 million with initial roll out in India, EU, China and expanding to other markets Communication and marketing to promote initiatives Ensure alignment with Climate Protocol Secure NGO support
  • Slide 20
  • I NITIATIVE E XAMPLE 20 COMBATTING CLIMATE CHANGE (3Cs) Integrate Power Sustainability Council into TSS Measure returns and costs across all businesses Coordinate business unit interactions 1)Everything we do within Tata can be re-examined through a sustainability lens. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 10) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. Tata Power Initiative Tata Credo Alignment TSS Facilitation of Initiative SteelConsultingMotorsPowerChemicals Diversify energy mix and develop strategies to meet the expanding demand for power over the next ten years Work with government stakeholders to develop alternative energy technology Carbon footprint reduction opportunities through the use of nuclear, wind, solar and hydro Communication and marketing to promote initiative Secure governmental support
  • Slide 21
  • I NITIATIVE E XAMPLE 21 STRATEGIC REORGANIZATION FOR TEA GROUP Integrate Tetley sustainability initiatives throughout Tea Group Measure returns and costs across all businesses Coordinate business unit interactions 2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 9)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata Tea Group Tata Credo Alignment TSS Facilitation of Initiative TeaInternationalPowerChemicals Transparent reporting of ethical sourcing through the Rainforest Alliance Certification (RAC) in Western European and North American Renewable packaging through Life-Cycle Analysis Fair Trade certified products and standards Communication and marketing to promote initiative Share Tata Chemical competency in sourcing, packaging, and distribution to Tata Tea
  • Slide 22
  • I NITIATIVE E XAMPLE 22 TATA GREEN CHEMISTRY INITIATIVE Integrate Innovation Center into TSS Measure returns and costs across all businesses Coordinate business unit interactions 1)Everything we do within Tata can be re- examined through a sustainability lens. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata Chemical Initiative Tata Credo Alignment TSS Facilitation of Initiative SteelInternationalTeaPowerChemicals Flue gas treatment, carbon absorption and nano glass coating for insulation Entered into the bio-fuels market in 2007 Fresh produce sourcing, packaging, and distribution Innovation Center Center for Agriculture and Technology Communication and marketing to promote initiative Share competency in sourcing, packaging, and distribution to Tata Tea
  • Slide 23
  • I NITIATIVE E XAMPLE 23 HOTEL CONSERVATION INITIATIVE Work with other Tata companies to discover conservation best practices Set up conservation measurement system for hotels Tata Hotel Conservation Initiative Tata Credo Alignment TSS Facilitation of Initiative Indian hotels is pursuing an internal project known as EARTH There are best practices from other hotel chains and Tata companies that can be leveraged for near-term immediate savings Long term goal should be LEED certification for new hotels Total annual savings/profit for 8 targeted hotels = $1M Communication strategy for hotel customers to get help with conservation efforts Leverage Climate Change task force TeaConsultingHotelsPower 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
  • Slide 24
  • FINANCIAL VALUATION 24
  • Slide 25
  • FINANCIAL VALUATION 25
  • Slide 26
  • FINANCIAL VALUATION 26
  • Slide 27
  • FINANCIAL VALUATION 27
  • Slide 28
  • DECISION ANALYSIS MATRIX 28
  • Slide 29
  • DECISION ANALYSIS MATRIX 29
  • Slide 30
  • C URRENT O RGANIZATIONAL C HART 30
  • Slide 31
  • TQMS I NNOVATION M ATRIX 31
  • Slide 32
  • TQMS C OMMUNICATION S TRUCTURE 32
  • Slide 33
  • TQMS C OLLABORATIVE R ESEARCH 33
  • Slide 34
  • TQMS F ACILITIES FOR L EARNING 34
  • Slide 35
  • T IME, D IFFICULTY, I MPACT, & R ISK 35
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    • Slide 1
  • TATA GROUP SUSTAINABILITY STRATEGY Mathew Ashley Bill OBrien Rachel Reiter Kevin Richards
  • Slide 2
  • E XECUTIVE S UMMARY Goal Develop a ten year strategy to continue Tatas profitable growth and sustainability leadership while addressing: Tatas growing global presence Evolving definitions of sustainability Increasing demand for measurement and transparency Recommendations Simplify Tatas internal definition of sustainability and articulate it through a credo Create a separate subsidiary to coordinate, communicate, and expand sustainability efforts across every business unit Establish a multi-local strategy tailored to the unique challenges and opportunities of each country and business 2
  • Slide 3
  • C URRENT S ITUATION 3 The status quo has risks Future funding is loosely defined Employee standards inequity Role clarity Overlapping efforts As Tata grows globally, how can the company preserve its unique tension between profit and purpose to meet evolving definitions of sustainability? SteelTeleComTeaInternationalConsultingHotelsMotorsPowerChemicals CSR silos are usually the norm Many independent initiatives and organizations Tata Trusts Tata Relief Committee Innometer TQMS Innoverse Annual Management Workouts Tata Protocol for Internal Assessment Tata Index for Sustainable Human Development Tata Steel Tata Power Tata Consulting Services Indian Hotels Tata Motors Tata Chemicals Tata Tea Tata International Tata Nano CII Energy Mgmt Award EMS standards EARTH Project Ongoing community service Community literacy Tata Swach (H20 purifier) Employee generation Animal husbandry Community development IIP Certification Tata Swach (H20 purifier) Measurement and transparency Inadequate stakeholder communication Innovation Center Carbon mapping Community literacy Health & wellness Recycling program Tetley Tea Rainforest Certification Ethical Tea Partnership (ETP) Combat Climate Change (3Cs) TCCI Green Globe collaboration Sustainability council Imported Coal
  • Slide 4
  • S USTAINABILITY D EFINITION & C REDO 4 Corporate Sustainability is a local, national, and global endeavor for creating long-term economic, social, and financial growth for the enterprise and its stakeholders. 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. 8)Sustainable thinking and implementation is a key skill that every future Tata manager should possess. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. The Tata Credo Sustainability Definition Corporate Sustainability (CS) is integral to value-creation in our business through the enhancement of human, natural, and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice. Goals of Tatas corporate communication on sustainability Simple and easy for employees to understand Flexible for changing and differing definitions of sustainability Creates a roadmap for employees and stakeholders Inspires new thinking for existing businesses and processes Articulates Tatas aspirations for sustainability 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. 8)Sustainable thinking and implementation is a key skill that every future Tata manager should possess. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.
  • Slide 5
  • TSS V ALUE C REATION 5
  • Slide 6
  • O RGANIZATIONAL C HART B REAKOUTS 6
  • Slide 7
  • 7 Create New Markets Internal Consultants: Facilitation & subject matter expertise Innovation Center: Creates new products or new markets for existing products Financial Planning: Funding, budgeting, agreement with shareholders Internal Audit: EVA in collaboration with TQMS Climate Change Task Force: Internal conservation across all business units
  • Slide 8
  • O RGANIZATIONAL C HART B REAKOUTS 8 Build Intellectual Capital Management Training: Rotations & development Climate Change Task Force: Grow environmental CSR Innovation Center: Improving business practices
  • Slide 9
  • O RGANIZATIONAL C HART B REAKOUTS 9 Monetize CSR Knowledge Financial Planning: External fundraising External Audit/Measurement: Outside credibility External Consultants
  • Slide 10
  • O RGANIZATIONAL C HART B REAKOUTS 10 Strengthen Brand Communications: Publicize CSR efforts in receptive markets Trust/Endowments: Protect & grow company culture of philanthropy External Audit & Measurement: Company-wide CSR report
  • Slide 11
  • O RGANIZATIONAL C HART B REAKOUTS 11 Attract & Retain Talent Trust/Endowments: Protect & grow company culture of philanthropy Management Training: Rotations & development Communications: Employee engagement Financial Planning: Employee incentives Innovation Center: Improving business practices
  • Slide 12
  • I MPLEMENTATION 12 If managed properly, TSS can address and overcome traditional barriers to implementation and common CSR challenges. A silo mentality develops (Robert Sutton) Make TSS part of BU strategic plan & operating review Incentivize BU managers TSS is under-resourced & overcommitted Project prioritization committee Budgeting process Hiding place for ineffective managers Management rotations HR training/retraining Recognize & reward success Corporate culture diluted Continue to support innovation from ground up, everyone part of success
  • Slide 13
  • M ULTI -L OCAL S TRATEGY 13 Growth opportunities should fit Tatas values while staying sensitive to economic, environmental, and social considerations in local communities. Tata Values Carbon footprint Recycling Water purification Ethical sourcing Human rights Gender rights Education Literacy Health, HIV/AIDs Fair wages Country Unites States China EU Brazil Canada Gulf CC South Africa Sri Lanka, Thailand, Vietnam Challenge & Opportunity Education, Regulations, Green investments Gov., Pollution, Human Rights, Economy Safety nets, Green Movement Deforestation, Natural resources Safety nets, Green Movement Oil rich, Cultural views, Gender roles HIV/AIDS, Developing economy Developing economy, Government stability, wages
  • Slide 14
  • I NITIATIVE E XAMPLE 14 END OF LIFE VEHICLES (ELV) PROJECT Leverage business knowledge in target markets Measure returns and costs across all businesses Coordinate business unit interactions 1) Everything we do within Tata can be re- examined through a sustainability lens. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata ELV Services Tata Credo Alignment Multi-Local Implementation TSS Facilitation of Initiative SteelInternationalMotorsPowerChemicals ELV processing is already mandatory in the EU By combining expertise across businesses, Tata can create an ELV initiative in the EU and new markets The estimated value of an ELV-processed vehicle is $267, which could be split between Tata and the customer Communication and marketing to promote initiative Secure NGO support
  • Slide 15
  • I NITIATIVE E XAMPLE 15 CSR SOFTWARE CONSULTING Finance and audit function provides measurement and transparency Develop human software in Innovation Center and through inter-company collaboration 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10)Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible. Tata CSR Consulting Tata Credo Alignment Multi-Local Implementation TSS Facilitation of Initiative Leveraging Tatas CSR core competency into a sustainability software consulting practice Developing Tata Consulting Services group specializing in Enterprise Carbon Accounting (ECA) software Test and develop new market for human sustainability software Future value creation through external CSR consulting beyond software Climate change group leveraged for CO2 tracking software Seek out potential clients across existing business ConsultingSteelPowerTelecomInternational
  • Slide 16
  • E XTERNAL R ISKS 16 If implemented correctly, our recommendations can create value by anticipating outside change and giving Tata the structure and capability to continue profitable sustainability.
  • Slide 17
  • T IMELINE & A CTION P LAN 17 Next Steps Discuss TSS idea with key leaders Begin work on standards for employee equality across countries If preliminary feedback is positive, hold an offsite leadership meeting to finalize credo, TSS plans, budget, and communication strategy. Investigate initiative feasibility Investigate legal/tax/reporting implications of subsidiary Costs and Returns Initial investment for TSS and initiatives: $52M –TSS assumed to have up to 500 headcount –Total Tata 2009 investment in social initiatives: $159M (Graham, Too Good To Fail, 2010) Additional expenditures of $20M - $60M per year as staged initiatives roll out Minimum 10% return projected if Tata brand value increases by $4M per year
  • Slide 18
  • QUESTIONS?THANK YOU
  • Slide 19
  • I NITIATIVE E XAMPLE 19 ENERGY EFFICIENCY INITIATIVES Leverage business knowledge in target markets Measure savings and costs across all businesses Coordinate business unit knowledge sharing 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 6)All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices Tata Energy Efficiency Initiatives Tata Credo Alignment TSS Facilitation of Initiative SteelInternationalMotorsPowerTea Tata Steel leads group on energy efficiency programs and has several innovative pilot programs Reduce its carbon footprint in existing and new markets Projected to save $3.1 million in fuel costs, savings from other energy programs $17.9 million with initial roll out in India, EU, China and expanding to other markets Communication and marketing to promote initiatives Ensure alignment with Climate Protocol Secure NGO support
  • Slide 20
  • I NITIATIVE E XAMPLE 20 COMBATTING CLIMATE CHANGE (3Cs) Integrate Power Sustainability Council into TSS Measure returns and costs across all businesses Coordinate business unit interactions 1)Everything we do within Tata can be re-examined through a sustainability lens. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 10) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. Tata Power Initiative Tata Credo Alignment TSS Facilitation of Initiative SteelConsultingMotorsPowerChemicals Diversify energy mix and develop strategies to meet the expanding demand for power over the next ten years Work with government stakeholders to develop alternative energy technology Carbon footprint reduction opportunities through the use of nuclear, wind, solar and hydro Communication and marketing to promote initiative Secure governmental support
  • Slide 21
  • I NITIATIVE E XAMPLE 21 STRATEGIC REORGANIZATION FOR TEA GROUP Integrate Tetley sustainability initiatives throughout Tea Group Measure returns and costs across all businesses Coordinate business unit interactions 2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 9)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata Tea Group Tata Credo Alignment TSS Facilitation of Initiative TeaInternationalPowerChemicals Transparent reporting of ethical sourcing through the Rainforest Alliance Certification (RAC) in Western European and North American Renewable packaging through Life-Cycle Analysis Fair Trade certified products and standards Communication and marketing to promote initiative Share Tata Chemical competency in sourcing, packaging, and distribution to Tata Tea
  • Slide 22
  • I NITIATIVE E XAMPLE 22 TATA GREEN CHEMISTRY INITIATIVE Integrate Innovation Center into TSS Measure returns and costs across all businesses Coordinate business unit interactions 1)Everything we do within Tata can be re- examined through a sustainability lens. 3)Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 7)Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. Tata Chemical Initiative Tata Credo Alignment TSS Facilitation of Initiative SteelInternationalTeaPowerChemicals Flue gas treatment, carbon absorption and nano glass coating for insulation Entered into the bio-fuels market in 2007 Fresh produce sourcing, packaging, and distribution Innovation Center Center for Agriculture and Technology Communication and marketing to promote initiative Share competency in sourcing, packaging, and distribution to Tata Tea
  • Slide 23
  • I NITIATIVE E XAMPLE 23 HOTEL CONSERVATION INITIATIVE Work with other Tata companies to discover conservation best practices Set up conservation measurement system for hotels Tata Hotel Conservation Initiative Tata Credo Alignment TSS Facilitation of Initiative Indian hotels is pursuing an internal project known as EARTH There are best practices from other hotel chains and Tata companies that can be leveraged for near-term immediate savings Long term goal should be LEED certification for new hotels Total annual savings/profit for 8 targeted hotels = $1M Communication strategy for hotel customers to get help with conservation efforts Leverage Climate Change task force TeaConsultingHotelsPower 1)Everything we do within Tata can be re-examined through a sustainability lens. 2)Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 4)Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5)Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business. 9)Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
  • Slide 24
  • FINANCIAL VALUATION 24
  • Slide 25
  • FINANCIAL VALUATION 25
  • Slide 26
  • FINANCIAL VALUATION 26
  • Slide 27
  • FINANCIAL VALUATION 27
  • Slide 28
  • DECISION ANALYSIS MATRIX 28
  • Slide 29
  • DECISION ANALYSIS MATRIX 29
  • Slide 30
  • C URRENT O RGANIZATIONAL C HART 30
  • Slide 31
  • TQMS I NNOVATION M ATRIX 31
  • Slide 32
  • TQMS C OMMUNICATION S TRUCTURE 32
  • Slide 33
  • TQMS C OLLABORATIVE R ESEARCH 33
  • Slide 34
  • TQMS F ACILITIES FOR L EARNING 34
  • Slide 35
  • T IME, D IFFICULTY, I MPACT, & R ISK 35
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