ACCELERATING
SUSTAINABLE GROWTH

Corporate Sustainability Reporting or CSR refers to a regulation and management system employed by companies to keep check of their environmental and social impact on the world. It is a yearly report made by companies to self-regulate their brand reputation through charitable, philanthropic and social activities. Although CSR is usually done by companies as an initiative of their own, many nations and organizations have made it mandatory for large scale companies to have a CSR model. It is also a way to make the stakeholders of the company and the general public aware of their yearly working system.

What are the benefits of CSR?

To have a long-term customer or client, a brand doesn’t need just a good product. It needs to show what it stands for, what values it represents. Here are some benefits to incorporating CSR into your company:

It helps the company to be more conscious of its social, economical and moral responsibility It improves a company’s reputation for its employees and potential recruits CSR limits the risk of scandals and mishaps in the environment. It enhances the perception of the general public, as people prefer to use products and services of a company which is environment conscious.

How to write a CSR report?

Without careful efforts, a CSR report can appear extremely dull and difficult to read. A well written CSR attracts investors, customers as well as potential employees. So here’s how to write an attractive CSR report:

• The report will be online, so use a directory or table of contents in the beginning for all subjects mentioned in the report
• Give an overview of your business, its operations and recent dealings
• An optimistic and warm letter from the CEO that adds a human element to the report
• Mention your goals for environmental sustainability
• Mention your progress towards said goals (use measurable numbers and percentages for more clarity)
• Add real life incidents, narratives or interviews to make the report more readable
• Mention what your priorities will be for the next term in regards to corporate social responsibility, how the company will tackle major issues
• Use detailed and easy to understand infographics and charts.
• If the report is large, make sure to add the sources from which the report is compiled.
• Add the contact details of every major person involved in the handling of mentioned issues.
• Have your report audited by a third party for better validation

What are some good examples of CSR?

Writing a CSR report can be daunting and exhausting, especially without inspiration. Here some excellent examples of CSR done flawlessly by corporate companies that we can learn from. (THIS PARANTHESIS IS NOT TO BE INCLUDED IN FINAL BLOG- THE LINKS ARE TO THE RESPECTIVE COMPANIES’ CSR REPORTS)

• Google: https://sustainability.google/in 2019, Google celebrated 13 years of Carbon neutrality. It is also the world’s largest annual corporate purchaser of renewable energy.
• Ford Motor Company: https://www.india.ford.com/about-ford/community/csr/#:~:text=Ford%20India%20lays%20particular%20importance,and%20pollution%20of%20water%20bodies the firm took a Sustainable Workforce initiative under which they improved employees’ health, efficiency and productivity. Its global safety standards have reduced workplace accidents by 90%.
• Bosch: https://www.bosch.in/our-company/our-responsibility/corporate-social-responsibility/during the early Covid-19 outbreak, Bosch India pledged more than 50 crore rupees for pandemic relief efforts. 9 lakh masks were donated to second level Covid-19 warriors.
• Lego: https://www.lego.com/en-us/sustainability the firm has pledged to go completely carbon neutral by 2022. The toy company has also announced that they will replace from plastic packaging their toys to paper packaging.
• Ben & Jerry’s: https://www.benjerry.com/whats-new/2014/corporate-social-responsibility-history the ice-cream company donates 7.5% of their pretax earnings to social causes since 1985. It has remained one of the few brands that have consistently spoken out and taken action against acts of injustice around the world.

While CSR report can look different for every company, its objective is the same throughout- to be more sustainable, ethical and responsible. To do well not just for the brand, but also the environment. Companies that stick with yearly CSR reports usually tend to see profits in all areas. Socially responsible companies tend to focus on the approach called Triple Bottom Line. Here, three areas are taken into consideration- Profit, People and Planet. ‘Do well by doing good’ is their motto.

So if your company is not legally required to do CSR, it is still wise not to wait. CSR sets a standard for your company among your competitors. Committing to CSR is a step in the right direction, not just for your brand, but for everyone involved.

The Sustainable Development Goals (SDGs) are also known as the Global Goals. These were adopted by the United Nations, in 2015. A universal call to action to end poverty, protect the planet, & ensure that by 2030 all people enjoy peace and prosperity.

Sustainable Development goals are The 17 SDGs are integrated - They recognize that action in one area will affect outcomes in others and that development must balance social, economic, and environmental sustainability.

The 17 SDGs are:

1. No Poverty,
2. Zero Hunger,
3. Good Health and Well-being,
4. Quality Education,
5. Gender Equality,
6. Clean Water and Sanitation,
7. Affordable and Clean Energy,
8. Decent Work and Economic Growth,
9. Industry, Innovation, and Infrastructure,
10. Reducing Inequality,
11. Sustainable Cities and Communities,
12. Responsible Consumption and Production,
13. Climate Action,
14. Life Below Water,
15. Life On Land,
16. Peace, Justice, and Strong Institutions,
17. Partnerships for the Goals.

All countries have committed to prioritizing progress for all those who're the furthest & behind. The SDGs are designed to help with and end poverty, remove hunger, control AIDS, set the right ideals to end discrimination against women & girls.

Though all the goals are broad & interdependent, two years later, on 6 July 2017; the SDGs were made more “workable” & "actionable" by a UN Resolution which was adopted by the General Assembly. The resolution identifies specific targets for each goal to be achieved, along with indicators that will be used to measure progress towards each target. While the rest of the target years lie between 2020-2030; for others, the end date is not yet provided.

The thought, the creativity, the know-how, the technology & the financial resources from all of society is necessary to achieve the SDGs in every context. Only with everyone’s support, we can begin to think of a better tomorrow. Deeply analyzed progress charts & presentations for all the SDGs are published in the form of reports by the United Nations Secretary-General on their official channels. The most recent one is from April 2020.

Along with that, there is also a widespread consensus is that: The progress on all of the SDGs will be stalled if Women's Empowerment & Gender Equality are not prioritized, & treated holistically with all intentions to take them forward. The SDGs are a sign to policymakers as well as private sector executives and board members to work towards gender equality and women empowerment harder as the rest of the other SGDs have deadlines and we will probably miss them if these two prioritized ones don’t get momentum & begin to see some change.

Implementation of the SDGs started worldwide in 2016. This process can also be called "Localizing the SDGs" for the people and territories. For eg; Individual people, universities, governments, institutions & organizations of all kinds work are working separately but one or more goals at the same time which aligns the collective growth in the same direction.

SDGs provide us the framework through which we can move ahead into a more peaceful, prosperous, equal for all, green future. And each country has a role to play in achieving them.

Global warming is affecting the Earth more viciously than expected. The alarming rate at which the glaciers are melting and the sea levels are rising threatens the mass extinction of every species on the planet.

To counter this challenge, governments around the world came together and have designed a market-based system called carbon trading, under the Paris Agreement, to control and regulate the carbon emitted by businesses, especially the ones that are heavily dependent on fossil fuels.

How does carbon trading work?

There are multiple models designed to facilitate carbon trading, but the recent and successful one is the Cap and Trade scheme.

Cap and Trade Scheme

In this scheme, the government sets a limit on the emission over a time period and allots a fixed number of permits to compensate for the pollution. Each carbon permit is equal to one tonne of CO2 equivalent. Therefore, companies need to track their carbon footprint to comply with the carbon trading scheme.

Businesses that effectively reduce their emissions and manage to spare some carbon credits can auction them for money. Similarly, companies who exceed their carbon emission threshold limit can purchase carbon credits from these auctions.

Carbon Offsets

Another way companies aim to compensate for their exceeding their cap limits is by buying carbon offsets in the free market. Carbon offset refers to any activity which reduces the emission of greenhouse gases elsewhere.

Usually, the sellers of these offsets are project developers who design carbon-reducing systems and technology. Hence, each ton of carbon that is avoided polluting the environment counts as one carbon offset.

Advantage of Carbon Trading

Carbon trading has collectively involved the prime polluters from the developed countries to implement technologies that reduce their emissions. As these companies are majorly dependent on fuels, they usually exceed their allotted threshold, and hence are forced to buy carbon credit from the developing nations, providing the latter with the financial aid it needs.

Carbon trading also provides the flexibility to businesses to change their operations at their own pace. For example, small businesses can easily implement the latest technologies to reduce their carbon footprint and auction the spare carbon credits. Likewise, big corporations can buy these carbon credits to compensate for excess carbon emissions.

Disadvantages of Carbon Trading

Although carbon trading has lowered the carbon emission of many businesses, the scheme is still loose-ended and can be exploited by some companies via its loopholes. As the west is adapting to the concept, there�s still a lot of room for its improvement.

Nevertheless, carbon trading schemes are a work in progress and with stricter laws and controlled demand and supply of carbon permits, the scheme can drastically help the world counter global warming