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.

Humans don’t realize the importance of saving the environment unless the effects of their doings dawn upon them to destroy their existence; It's not all their fault because the average human life is 79 years (give or take) & earth is so vastly big that the effects of what humans do, don’t reflect until the generation which actively got involved to do it, gets wiped off the face of the earth in a natural biological life course. The next generation then again takes time to get acquainted with the fact that there are ill effects of what is being done.

Talking about the health of our mother earth; here are 5 shocking facts to put things into perspective:

1. Witnessing irreversible effects by 2030

If global warming goes above the recommended limit; more than 70% of Earth's coastlines will have their sea-level rise greater than 0.66 feet (0.2 meters), resulting in excessive coastal flooding, beach-sand erosion, salinization of water supplies & other impacts on humans & ecological systems which will be very harmful to the human life on earth. (Source: https://climate.nasa.gov/)

According to the findings of the survey conducted by the UN Inter-governmental Panel on Climate Change (IPCC), critically urgent action is needed to avoid the catastrophic effects of global warming over the world. Without the change in our actions towards our environment, we would see an increase in widespread flooding, extreme heat, drought & poverty.

2. Greenhouse gas levels are ever-peaking

Due to the rise in earth’s temperature, greenhouses gases accumulation is affecting nature’s natural processes more than ever. Fossil fuels combustion, Carbon-mono oxide emissions, & the environmental impact because of intensive farming has filled the atmosphere with CO2.

Scientists say that this is the fastest & the largest increase in CO2 emissions; the world has ever seen.

3. Species headed straight towards early extinction

One of the environmental deterioration signs is the extinction of various species from earth, be it animals, birds, reptiles etc. Most of other species' existence are endangered too

The Millennium Ecosystem Assessment, which involved more than 1000 experts, says that about 24 species a day get wiped out from the earth which comes to about 8700s species, per year (Source: e360.yale.edu).

4. Climate change is creating a refugee crisis

As global temperature sees a rise, millions of people living in areas that are very much prone to sudden collapse due to any natural adversity are fleeing their homes to avoid the impacts of potential droughts and foreseeable extreme storms. These numbers are only set to rise in the coming future. The International Organisation on Migration gauges that up to 200 million people would be displaced by the effects of climatic changes by 2050.

(Source: https://www.worldbank.org/en/news/press-release/2021/09/13/climate-change-could-force-216-million-people-to-migrate-within-their-own-countries-by-2050)

5. Our oceans are dying

Our planet is only as healthy as its oceans. The UN has warned that marine life faces irrecoverable damage from the millions of tonnes of plastic waste that ends up in the oceans, every year. More than half of the world’s coral reefs have died in the last 30 years, and 2/3 of the Great Barrier Reef has been damaged by coral bleaching; due to sea temperature going too high up.

(Source: https://www.nationalgeographic.com/science/article/scientists-work-to-save-coral-reefs-climate-change-marine-parks)

The earth itself indeed acts like a living organism; it restores what is being destroyed. But we are causing more damage than the earth can repair. The natural flooding, timely earthquakes, the occasional droughts don’t affect the earth one bit but it destroys human, animal and plant life as we know it.

The Earth will stay alive and kicking much longer after the last traces of the human race could be found on its land. So, it is our decision to challenge the natural course of action or to get aligned with it.

It's high time we take control and make positive changes otherwise doomsday is just around the corner waiting for us

Carbon emissions can be controlled in so many ways on any given level; be it organizational, industrial, or else; but only so many ways you can use to reach the desired threshold to enjoy the sweet zone of not needing any other organization to cancel out your exceeded margin. Carbon credits (the credits which an organization has that allow them a certain amount of carbon emission in a year) are used by either sticking to the emission allowances or providing funding for sustainable projects that actually create green energy.

If the equilibrium has to be maintained, this is commonly executed & achieved through an exchange, referred to as Carbon Financing. An annual payment cycle is started to fund your company’s project partner, be it public, private, NGO, etc for the greenhouse gases emission reductions created once the project is fully operational.

Carbon financing is a great way to boost the financial viability of cutting-edge projects to give them a longer life & less government interference. It can also generate an added revenue stream and gives an opportunity for the effective transfer of technologies, expertise & knowledge. It provides a medium of leveraging new public & private investments so that the investment kitty inflate & can help in projects to reduce greenhouse gas emissions allowing all to contribute.

But to leverage carbon financing to your advantage, organizations have to first file for a certification called CER (Certified Emissions Reduction Certificate) and get the audit done to pass for it.

A Certified Emissions Reduction Certificate, or a CER, is provided by the United Nations to member nations for averting one tonne of CO2 emissions by taking measures suitable for the environment. Countries with economies, both traditional & developed (as defined in the Kyoto Protocol) use CERs to help them reach their emission goals. These countries are able to reach their targets and are easily able to set future goals as it makes the endeavor of reducing greenhouse gases emissions more achievable.

Carbon Financing is a way to help organizations and help them out with their slab of emissions, at same the time for the government to be a watchdog over how much they are using or misusing the resources and abusing the limits they have to adhere to

Here are some facts regarding Climate Finance:

1) The UNFCCC, the Kyoto Protocol and the Paris Agreement call for financial assistance from countries with more financial resources to those that are less endowed and more vulnerable. (Drishti IAS - https://bit.ly/2Wy0CEb )

2) Under the Climate Change Action Plan for 2016-2020, the World Bank Group laid out a plan to increase climate finance from 21% to 28 % of the Bank’s total budget and has surpassed these targets for the second year in a row (Source – World Bank https://bit.ly/3kCj9aI)

3) The largest source of climate financing in India is public funding, which is routed through budgetary allocation and several funds and schemes related to climate change established by the Government of India such as National Clean Energy Fund (NCEF) and National Adaptation Fund (NAF). (Drishti IAS - https://bit.ly/2Wy0CEb )

It's necessary for the environment to have people who are taking care of it and helping it rest in the safest of embraces. The continuous industrial development and growth of infrastructure, new machines, and technology taking over the physical human efforts account for almost all the emissions. With this change, comes our responsibility to control or rather change altogether for the sake of this planet. Fortunately, or unfortunately, we can just do the former i.e. tending towards our responsibility to control.