TBL Issue 2 Eco-Efficiency

8/14/2019 TBL Issue 2 Eco-Efficiency

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a spec ia l i zed csr journa l

march-april 2008 issue 02

Eco-Efficiency Key TBL Driver

csr talk: advancement-poverty paradox

cover story:tbl and eco-efficiency

the feasibility of renewableenergy in pakistan

leapfrogging past green:can blue be the nextgreen in pakistan?

footprints in the air:air pollution prizes?

the people-centeredmodel of business

the pakistani perspective onsustainability reporting

business intelligence:EIU sustainability-business survey

green business sense?

A Publication of Asiatic Public Relations Network (Pvt.) Ltd.

energy conservation:collective conscience


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2 www.triplebottomline.com.pk

contents

global briefs

csr talk

csr toolkit

breather

social partnership

book in focus

musings

regulars

8

people - planet - profits

28

30PC-MoB

34

39

indus earth

challenge of the 21st century: advancement-poverty paradox

ethics incorporated

46

48

a second life

cover story

renewable energy

leapfrogging past green

footprints in the air

business intelligence

sustainability reporting

energy conservation

green perspectives

features

11

14

17

19

22

36

41

44

Editor-in-ChiefZohare Ali Shariff

Editorial DirectorKhadeeja Balkhi

Managing EditorRutaba Ahmed

Research, Distribution & DevelopmentRaza TahirFaisal SiddiqiMehfooz Aleem

CreativesKamran RaufShireen Lotia

ReprintIn line with our mission,

we encourage reproduction ofmaterial, provided tbl and contentpartners are given credit

PublisherAsiatic Public Relations Network(Private) Limited

Printed atNikmat Printers, Karachi

DisclaimerThe views expressed in tbl are theauthors and not necessarily shared bytbl and/or APR

DeclarationFrom the office ofDistrict Coordination Officer,City District Government Karachi

NO.DCO/DDO/LAW/CDGK/109/2007,KarachiDated May 22, 2007

Subscription, advertising andfeedback at:

tbl: triple bottom-line

Address: A-7, Street 1,Bath Island, Clifton,

Karachi, Pakistan.Tel: (92-21)-5837674, 5823334Fax: (92-21)-5867103E-mail: [email protected]: www.triplebottomline.com.pk

Subscribe to a full year of tbl(6 issues) at the special rate of Rs.1,000 andsave the cost of an issue.

If you wish to subscribe to tbl, orunsubscribe, please write to us [email protected]

tbl and eco-efficiency

the feasibility of renewable energy in pakistan

can blue be the next green in pakistan?

air pollution prizes?

EIU surveys sustainability impact on businesses

the pakistani perspective on sustainability reporting

collective conscience

green business sense?


5/52

welcome on board

Anwar RammalChairperson

Chairman of Asiatic Public Relations (Pvt.) Limited,Pakistans leading communications and PR agency,affiliated internationally with Hill & Knowlton. AlsoChairman of JWT, Pakistan. Based in Karachi.

Khadeeja BalkhiExecutive Member

Sustainability and CSR consultant and internationallyexperienced business and gender journalist. Based inKarachi.

Khawar Masood Butt

Founder Sponsor Member

Chairman and MD of English Biscuit Manufacturers(Pvt.) Limited, Pakistans leading biscuit company.Entrepreneur and business visionary with a firmcommitment to CSR. Based in Karachi.

Ayesha Tammy HaqMember

Corporate lawyer, legal and media consultant.Concurrently a freelance journalist and host of aweekly current affairs television programme. Basedin Karachi.

Abrar HasanFounder Sponsor Member

Chief Executive of National Foods Limited,Pakistans pioneering multi-category food company.Innovative businessman and industry leader. Basedin Karachi.

Vivian Lines

Member

President and Chief Operating Officer of Hill &Knowltons Asia Pacific Region and concurrentlyPresident and CEO Southern Asia. Based inSingapore.

Habiba HamidMember

Founder of Saracen Consulting, a corporategovernance and responsibility consulting firm.Currently articulating the Dubai Model of sustainabledevelopment. Based in Dubai.

The tbl Team is honoured to

introduce our editorial advisory

board. Comprised of diverse

leaders and practitioners, our goal

is that the board will steer our

efforts to their highest potential.

vision and

mission

Vision: To steadily facilitate the germination of sustainable visions fororganisational growth, sharing specific triple bottom-line knowledge and tools

Mission Statement: To disseminate triple bottom-line knowledge to adiversified group including corporate, social development and general business

groups primarily through a specialised journal, expanding in accordance withorganisational capacity and market readiness

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The tbl team expresses its profound gratitude tothe companies whose names appear below, fortheir agreement to support this publication.Bringing out a knowledge-based publication liketbl involves considerable effort and costs. It maynot have been possible to bring out tbl in itspresent format without the invaluable supportand contribution of our Founder Sponsors.

Through their support to tbl our corporatesponsors have confirmed that they share ourMission of disseminating triple bottom-lineknowledge to a diversified group includingcorporate, social development and generalbusiness groups. We believe that helping tospread awareness of true CSR is in itself anelement of CSR. By becoming our sponsors, thefollowing companies have taken that vital firststep with us in our journey to facilitate awarenessand understanding of true CSR in our country.

The term Triple Bottom-Line (TBL), which translatesinto People, Planet, Profits, captures an expandedspectrum of values and criteria for measuringorganisational (and societal) success - social,environmental and economic.

Through our masthead we personify the term TBL.Essentially, our bottom line is a grey bar with aburgundy border which runs through the masthead,at some points overlapping the letters and runningunder them at others. Here t stands for triple and isrepresented through the three shades of the letter.The b stands for bottom and it sits below our greyline with the line going through it - since thismagazine is a below the line activity, the two gel intogether. The l stands for line and the letter sitscomfortably on top of the grey bottom line.

Mr. Tanveer B. Lone is indeed a busy man, laden withhis struggle for the truth in the Sustainability industry.His first name, Tanveer, according to our wonderfulFerozsons Urdu-English dictionary means'illuminating'. We feel he is sometimes the seeker of

enlightenment, and at others, the seemingly lonebearer. Driven towards his destination the true lightof CSR he sometimes feels like a lone voice buriedamidst the complex factors he confronts on the way.Yet as he sets forth, oft-alone on this journey, he knowshe will meet companions along the sub-paths his

journey takes, merging at destinations common withhim. There will be occasions where we can all relate tohim. At times, though his capitalist-training-bredfinancial focus may fluster us and his understandingtowards disseminating the true implications of thetriple bottom-line. Feel free to share ideas with Mr.TBL that might help clear the oft-murky waters he'llencounter in his expedition at [email protected]

acknowledgement

mr tbl

English Biscuit Manufacturers

(Private) Limited

Founder Sponsor

ENGRO CHEMICAL PAKISTAN LIMITED

Engro Chemical Pakistan Ltd.

Co-sponsor

National Foods Limited

Founder Sponsor



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As businesses expand and becomemore accountable, the crucial linkbetween higher levels of corporate

transparency, accountability andsustainability performance of businessesbecomes more stark. Eco-efficiency must beseen as a vital area for both improvementand for reporting. Indeed, one can even saythat there is a direct co-relation between growth(which invariably entails a larger environmentalfootprint) and the need to leverage eco-efficiency. Weat TBL see eco-efficiency as a key driver of the triplebottom line and hence have chosen it as the theme of

our publication's second issue.

Management Best Practices require recording andreporting of various business functions. Whencompanies begin to pursue the triple bottom line - eco-efficiency being one important aspect of this -reporting must be a mandatory exercise.

One significant indicator of the growing importance ofCSR is the number of companies, even in our owncountry, who have started bringing out an annualreport on their CSR activities. For some this may belittle more than a public relations exercise. There areothers who see this as an opportunity for introspectionand self-analysis, leading to improvements in systemsand practices for the growth of the company and fordelivering even better products and services to thepublic. Whatever the motivation, the fact thatcompanies are increasingly willing to report on theirCSR or sustainability practices is a good omen. Itimplies that there is an awakening in the corporatesector to be accountable to their audiences.

The Global Reporting Initiative or GRI has emerged asthe world standard for reporting on CSR andsustainability. A large multi-stakeholder network ofexperts in dozens of countries worldwide participate in

GRI's working groups and contribute to thedevelopment of the GRI reporting framework in otherways - both formally and informally. Its vision is thatreporting on economic, environmental, and social

performance by all organizations should beas routine as and comparable to financialreporting. Included in this issue is an articleespecially written for TBL by KatherineMiles Hill, Communications Coordinator ofGRI and entitled, Putting the Value ofSustainability Reporting into Perspective inPakistan. It should serve as a tailor-made

introduction to reporting practices for those amongTBL readership who wish to tread this path.

We're also delighted to share with you SalmanAbedin's trail-blazing thoughts on the new corporate

colour, philosophy and change-catalyst. The People-Centered Model of Business, in our CSR ToolkitSection meanwhile gives thought-provoking insight ona practical tool which organizations can use to examinethe reality of their markets by focusing on humanactivity - written by the author herself.

We hope there will be plenty of food for thought (andfor action!) for our readers in the various articles in thisissue on eco-efficiency and other CSR subjects.

Finally, on behalf of TBL's Editorial Advisory Boardand the management, I would like to thank all of ourreaders who gave us invaluable feedback on our firstissue. Taking this feedback into account we havebrought about certain improvements in thepublication's layout and design, which are reflected inthis second issue. TBL aims to maintain a highstandard in both presentation and content and yourcontinuing feedback will be invaluable and greatlyappreciated.

Sincerely,

Zohare Ali Shariff

Editor in Chief

editors note

beyond the basics

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government,NGO sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment andreinforce the essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets.

We would love to hear from you. Please do contact us at [email protected] with your thoughts, feedback and input from your corporateor social practices.

tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of

course we know youll give tbl the credit when you share our work.

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letters to the editor

Overall I found the magazine

useful in helping to refinean understanding of the

role of the corporate sector incontributing towards the wellbeingof a balanced society, whichincludes improved social servicesand the environment.

While I found the opinion featuressuch as the one about not using csras a superficial buzz-word veryuseful, one would welcome asection of the magazine dedicatedto share certain trend data analysis,such as the number of privatecompanies registered under the ISO14000 environment standard, thenumber of companies producingseparate reports on theirenvironmental performance, andthe number of banks that havesigned up to the "Equator Principle"environmental standards.

Wishing the magazine success forthe future.

Ali Habib

Director GeneralWWF-PakistanLahore

Thank you for sending me acopy of the first issue of tbl. Itis indeed a very admirable

venture and initiative inhighlighting CSR as an

opportunity.

My congratulations to you fortaking the initiative and beingamong the pioneers.

Fasihul Karim Siddiqi

Director & Board AdvisorHuman ResourcesProgressive Manufacturing andCSRHinopak Motors LimitedKarachi

Iwanted to share with you my

excitement at receiving my copyof TBL. It's finally made it's way

to me in Geneva, after travellingthrough London and who knowswhere else!

The publication looks fantastic andI can see there was a lot of hardwork put into it by all of you. Thestandard is very impressive and Iam very proud to be a part of suchwork.

Flavia Thome

Programme AdministratorTrade Knowledge NetworkInternational Institute forSustainable DevelopmentGeneva

It is heartening to see therealisation of profound socialand environmental impacts

businesses have and that is fastcatching up in a country like

Pakistan. The changing balance ofpower between the political andeconomical forces in the presentage of globalisation, with retreat oftraditional left, has put additionalresponsibility on businesses toassess their social andenvironmental footprints and alsoto improve upon them for thegreater good of society.

TBL can play a leading role increating awareness and offer

solutions to businesses in thisregard.

My felicitations to the TBL team forcoming up with this platform. Itwould be nice to see some coverageon various anti-capitalismmovements worldwide to betterunderstand the context of evolvingsocial accountability of businesses.

Favad Soomro

Karachi

Dear Readers,

Thank you for taking the time toshare your valuable input with TBL.

Mr. Siddiqi and Ms. Thome, thankyou for your warm encouragement.The TBL journey has been arewarding, yet challenging one. Ourgoal to add value to the knowledgebase of our diverse readershipremains an endeavour that willrequire our concerted efforts andwe look forward to input,suggestions and initiatives foraction from our readers.

Mr. Habib, youll be happy to seethat we have incorporated yourvaluable suggestion and haveincluded in this issue a businessintelligence survey, which we hopewill be an informative and tellingread. We are also working withlocal universities to do groundresearch similar to the topics youhave shared and look forward toyour ongoing feedback, and

moreover support fromorganizations such as WWF-Pakistan.

Mr. Soomro, thank you for candidlysharing your interests with us. Weare all keen to learn more about theevolution that we hope will balanceand neutralize interests towards therealization of an inclusive triplebottom line approach - instead ofthe traditional single bottom-linefoci that unregulated capitalist

environments often result in.

In the next issue, we expect topublish material that would beinsightful to all our readers.

We hope that tbl will continue toserve as a platform and changeagent through our readers activeparticipation and debate.

Editorial Team


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Biofuels Boom RaisesEnvironmental ConcernsA recent UN Report states that thebiofuels boom is hurting poorconsumers in Asia by driving upcrop prices. It is hurting the poorrural farmers who have not seenthe benefits of biofuel productionand have not been able to adapttheir production to cash in on theboom.

Small rural farmers lack the meansand resources to extend their landsand adapt to new crops. "Theimpetus for large-scale farming canpush the poor off their land,excluding them from biofuels," aUnited Nations report said.

The rise of biofuels has raisedconsiderable criticism againstcountries like the United States fordiverting farm products to produce

biofuels, saying this had led tosoaring global food prices. TheUnited States is the world's biggestproducer of biofuels, derivedmostly from corn. "Severalquestions have arisen on even theemissions implication of that route,and the fact that this has clearlyraised prices of corn," said Mr.Rajendra Pachauri, Nobel PeacePrize winner and climate changescientist.

There is a growing controversyover using food crops to makebiofuels as an alternative to fossilfuels; some environmentalists andpoliticians assert it has raised foodprices, distorted governmentbudgets and also led todeforestation in South-East Asiaand Brazil.

The world must take care whendeveloping biofuels to avoidperverse environmental effects and

higher food prices.

Supporters claim that biofuels are

the only renewable alternative tofossil fuels and do generally resultin greenhouse gas emissionsavings. Scientists say some kindsof biofuels generate as much carbondioxide as the fossil fuels theyreplace, and a lot of caution is

needed when coming up withbiofuel solutions that have a majorimpact on production of foodgrains and an implication for foodsafety.

Uniform Carbon Pricing isCrucial: IMF ReportThe International Monetary Fundsaid in a report released today thatsharply reducing the world'scarbon emissions will costrelatively little economically if a

carbon-pricing scheme is adoptedsoon that includes all the major-emitting countries.

The report didn't endorse onespecific pricing mechanism, butsaid that either a carbon tax or acap-and-trade system could work ifit gradually increased the price ofcarbon. "There are significant risksfrom climate change; damagescould be severe," said IMFeconomist Natalia Tamirisa. "The

costs of mitigation could bemoderate provided that policies arewell designed."

Meanwhile, at the ongoing UnitedNations climate conference inBangkok, the IMF's partnerinstitution (and fellow predatorylender) the World Bank floatedproposals to combat climate changethat proved unpopular withdeveloping nations. Instead offunneling cash through the U.N.climate program to aid developingcountries, the World Banksuggested it should administer a$10 billion clean-technology fund,and possibly other such funds.

Critics of the proposal said theWorld Bank is too closelycontrolled by G8 countries and hasa shady history of shafting poorernations.

Clean Wave Technologyhas Potential for WiderApplications

Japanese sailor Kenichi Horie setsail for Japan from the HawaiiYacht Club in Honolulu on March

17, 2008 on his latest solo adventureat sea, on what he says will be theworld's longest voyage in aninnovative wave-powered boat. Hewill travel nearly 4,000 milesaboard a 3-ton, 31 foot-long wave-powered catamaran, the SuntoryMermaid II, at a speed of up to 5knots. The journey, which wouldtake a diesel-powered boat about amonth to complete, is expected totake Horie two to three months.

This voyage aims to prove that

wave propulsion is viable. Whereasoil is a limited source, there is nolimit to waves as a power source.Wave energy, the greenest nauticalpropulsion system since the sail,has high development potentialand wide commercial viability.

The vessel is made of recycledaluminum alloy and has finsmounted side by side beneath thebow, which generate dolphin-likekicks that propel the boat forward,

making it the world's first boat tobe powered by the motion ofwaves. The Suntory can transformwave energy into propulsive powerregardless of where the wavecomes from, says Yutaka Terao, anengineering professor at TokaiUniversity in Japan who designedthe boats propulsion system.

Marine energy is still in its earlystages. According to Roger Bedard,ocean energy leader for the Electric

Power Research Institute, U.S.,widespread use of marine energyis about a decade away. Severalprojects have been launched mainlyin the U.S. and Europe to harnessmarine power and convert theocean or river movements intoelectricity - to create the world'snewest form of renewable energy.

march-april 2008 9

Shared by Grist, an online environmental news magazine

P

LANET


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Value-based ApproachMeasures SustainabilityPerformance of AutomobileManufacturersA recently published study"Sustainable Value in AutomobileManufacturing is the first in theworld to assess the corporatesustainability performance of 16automobile manufacturersworldwide using the SustainableValue approach. The studyexamines the sustainabilityperformance of the companiesBMW Group, Daihatsu,DaimlerChrysler, FIAT Auto, Ford,GM, Honda, Hyundai, Isuzu,Mitsubishi, Nissan, PSA, Renault,Suzuki, Tyota and VolkswagenGroup over the period 1999 2005.This project was undertaken byresearchers working at the Institutefor Futures Studies (IZT) andTechnology Assessment in Berlin

and Queens University Belfast

This is the first value-based methodthat links corporate sustainabilityperformance and the value-basedapproach that is traditionally usedin management practice andcompany financial analysis. Thismethod establishes whether acompany is successfully using itseconomic, environmental and socialresources to create value, in relationto its peers. For example, the report

found that, in 2005, Toyotagenerated an absolute SustainableValue of 6.5 billion, followed byBMW with a Sustainable Value of

2.93 billion, i.e. Toyota generated6.5 billion more profit than theaverage automobile producerwould have achieved with the sameset of resources.

So far the debate has mostlyfocused on the usage phase ofautomobiles and related CO2 fleetemissions, rather than theenvironmental burden createdduring the production phase. This

study closes this gap as it enables acompanys efficiency gains to beexpressed in monetary termsthrough benchmarking acompany's production resourceefficiency against its competitors.The Sustainable Value approach is

a practical and significant tool forgenerating an in-depth, transparentassessment of corporatesustainability ratings andperformance trends in theautomobile industry.

Recycling and otherMeasures Undertaken toReduce Waste: Japan"Japan is home to theoverwhelming majority of theworld's incinerators", which is a

major source of dioxin, according toThe Japan Times. The amount ofgarbage produced in Japan isincreasing every year.

About 90% of the dioxin releasedevery year is created during wasteincineration - 2,900 grams in 1998,according to a government study.Nearly half of this is believed tocome from municipal waste alone,almost 80% of which is incinerated.Stores in Japan use plastic and

paper bags, and elaborate giftpackages and wrappings.Furthermore, disposable woodenchopsticks are widely used in thecountry.

By 2015, Japan aims to reduce thetotal amount of garbage producedby industries and individuals to 23million metric tones - 40% of theamount produced in 2000. Thegovernment target for individualsis a reduction of 20%. Japan aims to

achieve this target throughrecycling and other measures suchas less packaging.

A set of plans to promote recyclingand halve the garbage it produceswas launched by the Cabinetrecently. Japan will urge citizens toavoid using disposable chopsticksand instead carry their own, and goshopping with their own bagsinstead of using plastic ones. Theadopted plans also encourage theobvious: that people use publictransportation and ride bicycles.

Office Equipment Eco-Impact CalculatorA new sustainability calculatordeveloped by Xerox can helpcompanies calculate theenvironmental impact of officedevices and reduce the energywastage of printers, copiers, andother newfangled technology. Thecalculator is designed to considerfactors including type of printcartridge, print colour, speed,number of pages printed permonth, and Energy Star rating, andcreates bar graphs demonstratingenergy consumption, greenhousegases, and solid waste producedfrom use of the office device.

The "Sustainability Calculator" uses

proprietary algorithms andresearch to suggest ways to reduceenergy and paper consumptionfrom office devices, regardless ofmanufacturer. The calculator hastwo sets of fields. After the firstbasic set, an office manager candescribe how he would like to seethe machines perform in thesecond. The calculator shows bargraphs covering energyconsumption, greenhouse gasesand solid waste produced by the

machine. Defense manufacturerNorthrop Grumman decreased thenumber of printers and copiers inone of its divisions from 2,000 to1,100 after using the calculator,Xerox states. As a result, thecompanys energy consumption fell27%, greenhouse gases by 26% andsolid waste by 33%.

There is an increasing awareness ofthe eco-impact of office devices. Onthe lighter side, a Americaneducation institutions haveobserved a strange, contagiousdisease striking photocopymachines. Symptoms of this diseaseinclude a propensity to chew uptrees at an amazing rate, all whileusing tremendous amounts ofenergy in the process. This hasraised great concern in severalschools in New York and Florida,for instance. A national day ofaction will be observed on April 17to stop global warming by puttingcopiers under quarantine.

PR

OFITS


Compiled by Rutaba Ahmed


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cover story

The spirit of eco-efficiency? To combine economic value creation or enhancementwhile continuously mitigating environmental resource usage and impacts.Eco-efficiency is a key driver for overall business performance because it helpscompanies understand that they can produce better goods and services while using

fewer resources, and lowering ecological impact: Thereby improving both, theirenvironmental performance and their bottom line.

The World Business Council on Sustainable Development (WBCSD) coined the termin 1992. The idea of eco-efficiency as a major driver of corporate excellence, accordingto them, was perhaps introduced by Swiss industrialist Stephan Schmidheiny in thesame year, through his book Changing Course.

This article aims to introduce the eco-efficiency concept, some of its keymanifestations, and perhaps most importantly, how companies can become more eco-efficient.

Identifying the positive link between environmental improvements and economic

benefits, is eco-efficiency's first base and taps the potential for enhancing savingsfrom environmental improvements.

by khadeeja balkhi

for tbl

march-april 2008 11

tbl and eco-efficiency:where to start?


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Key Considerations forEco-EfficiencyAt the heart of eco-efficiency iscreating -or delivering- more, with

less. And at the heart of CSR or thetriple bottom line is creating,instead of perhaps simply re-locating, honest value addition.

The Geneva-based WBCSD, acoalition of about 125 leading,international companies that sharecommitment to the environment.economic growth and sustainabledevelopment has identified ahandful of key action-areas of abasic eco-efficiency mandate.

Perhaps most relevant tocompanies functioning ineconomies such as Pakistan's is thecombined gist behind thecomponents: that businesses mustharness their creativity to deploynew technologies, initiateimprovements along the entirevalue-chain and bring new, value-added products to the market.

Eco-Efficiency Alongthe Value Chain: LCVA

The eco-efficiency concept has nowexpanded to include theexploration of businessopportunities to be gained fromsustainable development strategies,an idea which gained popularitywith Harvard Professor, Prahalad'sBottom of the Pyramid (popularlycalled BoP) theory. The BoPmovement is now in full-swingwith everyone clamouring to servethe billions of 'consumers' at thebottom of the income pyramid.

This, in a country often perceivedto be sliding towards the BoP, is oldnews.

Eco-efficiency though, can workthroughout the supply chain, end-users included - hence an increasedfocus on minimalistic packagingthat is driven by the understandingthat post-consumer processing is apart of the cost of production. Indeveloped markets, companies arealready developing products andservices that allow customers to cut

their consumption of resources andreduce their individual andcollective environmental impact.All while satisfying their needsoften more effectively, and at a

better price.

Budding entrepreneurs fromdeveloping countries can offer all ofthe above - but the catch sometimesis that quality becomes a victim.Without consumer demand forrigorous standards, why supplythem? This is where downstreamconsumer empowerment in theform of information is vital forleading companies who have firmfaith in the value chain that went

into producing their products. Theymust help consumers understandand demand ethically produced,quality goods.

It is a tough line to walk - but onlyif a company's business strategylacks ingenuity. (Please note: theexistence of a robust, long-termbusiness strategy is assumed).However, companies that haveinvested their time and energy intohonest creativity towards value-

addition are already reaping thebenefits.

For instance, offering services in amanner that meets theenvironmental, economic and social(triple bottom line) expectations ofall stakeholders will create a solidfoundation for increasingshareholder value over the longterm. Not rocket science.

Canada-based Suncor Energy forinstance, uses the Life Cycle Value

Assessment tool to facilitate"integrated decision making thattakes into account long-term triplebottomline benefits and impacts,not just short-term paybacks".Managers or business unit headscan often become too focused oncost-cutting measures, which canactually hinder both the realizationof the triple bottom line and thelong-term financial bottom line.

Proactive application of triple

bottom line or life cycle based

thinking, claims Suncor, makes it amore sustainable energy companythat continuously improves theperformance of its operations andproducts. Like many companies

who've treaded these warm waters,Suncor believes that this thinkingspecifically enables morerewarding decision making givenits triple bottom line parameterssuch as societal concerns andpriorities as they impact projectdesign and implementation,including safety and communityperspectives. It also facilitates thedevelopment of an eco-efficient"design of processes and operationsbased on opportunities to reduce

costs and environmental impactsand improve net value".

The benefits? A reduced risk ofunintentionally shifting the burdenor environmental impacts createdby company decisions in directoperations to upstream ordownstream activities - for starters.Want more? A "reduced businessrisk from hidden socio-economic orenvironmental liabilities, and/orregulatory or stakeholder

expectations" - now for a traditionalenergy company that is not onlyserious baggage potentiallyunloaded but a massively enhanced'license to operate'.

Private Sector: Livingthe Wake up CallThe good news, at least from theperspective of the eco-efficiency

journey, is that the corporate sectorhas woken up to realize that eco-efficiency is the only way forward.

Although many may have differentnames for it, several companies arein fact rigorously implementingmeasures towards their own eco-efficient future.

For instance, over a 15-year period,Engro Chemical has actuallyreduced its energy intake by 32%per ton of urea produced - whileproduction has actually increased.Within this period, the plant's

production capacity increased more



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than two-fold in 8 years: to 850,000tons per year in 1999, from 268,000tons per year in 1990.

Additionally, the company also

consistently improves its feed: fuelratio, producing more urea, withless natural gas input. This meansthat by streamlining its plant andpower operations, the company hasbeen consistently able to shift itsmain operational input: natural gas,towards actual urea production asopposed to consumption in theshape of power generation.

Evolution of Layering

Concepts: IndustrialEcologyOne of the most promisingmanifestations of the eco-efficiencymovements is that of industrialecology (IE). Sweden's RoyalInstitute of Technology, for instancedefines it simply as aninterdisciplinary study oftechnology, society and ecology.

"Industrial Ecology sees industrialsystems (for example a factory, an

ecoregion, or national or globaleconomy) as being part of thebiosphere," says Dr. GetachewAssefa of the Institute's Departmentof Industrial Ecology. "It considerssuch systems as a particular case ofan ecosystem, but based oninfrastructural capital rather thanon natural capital," Dr. Assefa adds.

It is essentially the shifting ofindustrial processes from open looplinear systems to closed loopsystems, meaning that no outputsare considered waste, they becomethe inputs of another industry -hence an ecology emerges. Insteadof resources and capitalinvestments moving throughsystems to become waste, IE shiftsto systems where wastes becomeinputs for new processes.

Dr. Assefa asserts that naturalsystems have no waste - henceproposes modeling human-madesystems after natural ones, thus

rendering them sustainable. He

calls this a form of biomimicry,using the biological organism as abasis for designing industrialsystems, thereby closing thematerial cycles.

But, these zero-waste targetsrequire intensive, proactive and oft-wrinkled cooperation betweenindustries. The basic tools herecommends include tools such asthe life cycle assessment tooldescribed above. For industrialecology, a life cycle energy analysisto assess the environmental impactis more meaningful still.

He also outlines four key

considerations to SustainableDesign, which he defines as "the artof designing physical objects tocomply with the principles ofeconomic, social, and ecologicalsustainability":1. Energy efficiency: this mainly

entails lower overall energyusage in manufacturingprocesses

2. Low-impact materials: non-toxic, recycled sustainably-produced materials usage

3. Quality and durability: betterquality and long-lastingproducts, lengthening positiveproduct life cycles

4. Design for reuse and recycling:design for performance in acommercial 'afterlife'

The fourth is a venture thatdeveloping countries seemespecially well-positioned toexplore. Our indigenous, informalrecycling systems catalyzed byBoP-based entrepreneurs are a

living example of this in fact. Forinstance, the organic waste of afood company becomes input for acattle feed company; the wastesteam of its plant air conditioningunits is channeled to power itsindustrial cooking appliances andso on.

Ways to Become Eco-Efficient?The hope is that this article has

helped unravel how eco-efficient

measures are among the highestimpact ways to live the triplebottom line. In the language of sixsigma, the 'low-hanging fruit' arehere; this is where creativity and

commitment combined with oft-miniscule financial input synergizeto offer almost immediate financialgain can be realized.

The WBCSD and Dr. Assefareinforce the following startingpoints below for companies to charteco-efficiency into their businessstrategies - as many are alreadyforced to do given dizzying fuelcosts. So while we still have room,let's try to be proactive by:

reducing the material intensity ofgoods and services - using less tomake a product or deliver aservice;reducing the energy intensity ofgoods and services;enhancing the recyclingpossibilities and options of allmaterials used;choosing a TBL-criteria basedmethod for production, service,disposal or recovery;increasing mineral recovery,

using fewer inputs such asenergy and water and recyclingmore while reducing emissions;using new technology, fewerinputs per unit of product such asenergy and water;recycling more and reducingtoxic emissions;maximizing the use of renewableand recycled resources,particularly strategicgeographical resources - forinstance, in Pakistan, wind andsolar energy are abundantly

available - and wasted.The bottom-line of eco-efficiency?Fully and honestly integrate it intoyour business strategy (andnational strategies to neutralizeyour own competitiveness in theshort term) - before it integrates itsown way in as natural resourceprices sky-rocket. And continue toadvocate and support policymeasures which reward eco-efficiency, as Pakistan's NationalConservation Strategy so wisely

recommended, way back in 1992.

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renewable energy

the feasibilityof renewableenergy inpakistanby miriam katzfor tbl

Over the last thirtyyears, Asia hasbecome a major

player on the global scene.Many economies havebecome tigers while China

and India are developingmore rapidly than anyonehad expected. Because ofthese developments,electricity demand isexpected to increase 8%every year until 2015. Asthe world wakes up to thereality of climate change,electricity will increasinglyhave to come from

renewable sources such aswind and solar. Pakistan isin a good position to exploitthese because it hasabundant wind and sun.This article will look at thispotential, the barriers thatexist to furtherdevelopment - and ofcourse reasons why it mustfollow the course to a

greener energy future.

Origins of WindPowerMany people do not realize thatwind energy first came about inAsia. Between 500 and 900 AD, avertical axis turbine was

developed in Persia to grindgrain and pump water. Thesewind turbines were made frombundles of reeds or wood.During the 11th century, theCrusaders brought back theconcept of the windmill toEurope where it was first used bythe Dutch to grind corn and todrain wetlands in order forpeople to settle and build homes.In recent years, Europe andNorth America have led in termsof installed wind capacity.

Asia is now -again- making itspresence felt. India and Chinacurrently have the fourth andfifth largest number of windturbines installed, respectively.It is interesting to note however,that while India has 45,000megawatts (MW) of wind energypotential and a much largersurface area, Pakistan has at least50,000 MW of potential.



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The Viability of WindPower in PakistanPakistan is fortunate to havesomething many other countries

do not, which are high windspeeds near major centres. NearIslamabad, the wind speed isanywhere from 6.2 to 7.4 metresper second (between 13.8 and16.5 miles per hour). NearKarachi, the range is between 6.2and 6.9 (between 13.8 and 15.4miles per hour). Pakistan is alsofortunate that in neighboringIndia, the company Suzlonmanufactures wind turbines,thus decreasing transportation

costs. Its turbines start to turn ata speed of 3 metres per second.Vestas, which is one of theworld's largest wind turbinemanufacturers, has windturbines that start turning at aspeed of 4 metres per second. Inaddition to Karachi andIslamabad, there are other areasin Pakistan that receive asignificant amount of wind.

In only the Balochistan andSindh provinces, sufficient wind

exists to power every coastalvillage in the country. Therealso exists a corridor betweenGharo and Keti Bandar thatalone could produce between40,000 and 50,000 megawatts ofelectricity.

Given this surplus potential,Pakistan has much to offer Asiawith regards to wind energy. Inrecent years, the government hascompleted several projects to

demonstrate that wind energy isviable in the country. In MirpurSakro, 85 micro turbines havebeen installed to power 356homes. In Kund Malir, 40turbines have been installed,which power 111 homes. TheAlternative Energy DevelopmentBoard (AEDB) has also acquired18,000 acres for the installation ofmore wind turbines.

In addition to high wind speeds

near major centres as well as the

Gharo and Keti Bandar corridor,Pakistan is also very fortunate tohave many rivers and lakes.Wind turbines that are situatedin or near water enjoy an

uninterrupted flow of wind,which virtually guarantees thatpower will be available all thetime. Within towns and cities,wind speeds can often changequickly due to the presence ofbuildings and other structures,which can damage windturbines. In addition, manypeople do not wish for turbinesto be sited near cities because ofnoise, though these problems areoften exaggerated. Wind

turbines make less noise than anoffice and people comfortablycarry on conversations whilestanding near them.

Solar Energy - aFeasible Alternativefor PakistanAs is becoming painfully evidentwith summer around the corner,Pakistan is an exceptionallysunny country. If 0.25% of

Balochistan was covered withsolar panels with an efficiency of20%, enough electricity would begenerated to cover all ofPakistani demand. In allprovinces the AEDB has created100 solar homes in order toexploit solar energy.

Solar energy makes much sensefor Pakistan for several reasons:firstly, 70% of the populationlives in 50,000 villages that arevery far away from the nationalgrid, according to a report by theSolar Energy Research Centre(SERC). Connecting thesevillages to the national gridwould be very costly, thusgiving each house a solar panelwould be cost efficient andwould empower people botheconomically and socially.

In many Pakistani villages, woodand animal dung is used forcooking fuel; however, this is

causing widespread

deforestation. Women are alsoforced to walk for many mileseach day to gather wood. Then,their health suffers from thesmoke emitted from cooking on

wood fires. The AEDBcompleted a project wherebyvillagers that received solarpanels were also given solarcookers. During the project,deforestation decreased by 80%near the villages and the cookerswere also made in Pakistan,which generated local economicgrowth.

Coal Power andHydroelectricityIn addition to wind and solar,Pakistan has the fifth largest coaldeposits in the world. However,the negative impacts of coal havebeen well documented. Whenpower is produced from coal,sulfur dioxide and nitrous oxidesare produced as well, whichcause an increase in smog, ozonedepletion and acid rain. Nitrousoxide is also a very powerfulgreenhouse gas. Even before thepower is produced, the

transportation of coal alsoimpacts health due to the coaldust and the emissions from thevehicles. Lastly, the heavymetals from coal mine waste canseep into groundwater andrivers, of which there are manyin use Pakistan.

Pakistan also has some depositsof natural gas in the PotwarPlateau region and near theborder between Balochistan and

Sindh, but these are likely todisappear within 20 years.

Because of the presence of manyrivers and lakes, it may betempting to go down the route oflarge hydroelectric dams, butthis may not be the answer forPakistan. There are manyexamples of hydroelectricprojects in India and China thatshow the detriments ofhydroelectricity. In China, one

million people are being

march-april 2008 15


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relocated as part of the ThreeGorges Dam project and 62,000acres of farmland will beflooded. The reservoir for thedam will contain one billion tons

of sewage, states Diana Biggs inher case study on the ThreeGorges Dam. In Pakistan, theKalabagh dam was put on holdfor environmental reasons in the1980s and since then, there hasbeen very little activity in thisarea. Due to the publicity thatlarge dams have gained in recentyears, it looks unlikely thatPakistan will take this route.

Financial and Policy

IncentivesDespite the fact that Pakistan isso well endowed with wind andsolar potential, only a fewprojects such as those mentionedabove have been completed. Oneof the reasons why this hasoccurred is that Pakistan doesnot have major financialincentives available for thosewho want to install windturbines or solar panels. Let uslook at the case of India,

Pakistan's neighbour. Despitehaving less potential for wind,India now has the world's fourthlargest number of wind turbinesinstalled at 7,093 MW, accordingto India: Renewable EnergyMarket report. In front of Indiaare Germany at 21,283 MW,Spain at 13,400 MW and the USat 12,934 MW. In Germany,Spain and India, those whoinstall wind turbines and solarpanels are guaranteed a certain

rate per kilowatt hour. In India,this varies according to thetechnology and the area. TheMinistry of New and RenewableEnergy, India reports that inmost areas, between 2500 and4800 rupees are guaranteed forsolar panels, and for windturbines, between 250,000 and300,000 rupees are awarded.

Because of the above incentives,the cost of wind in India is

between 2 and 2.5 cents per

kilowatt hour while in Pakistan,the cost is 7 cents. In December2006, President Musharrafannounced a national renewableenergy policy. This policy means

that small projects do not needapproval and that any personcan put up their own project.However, there are no financialincentives for doing so. At themoment, all renewable energyequipment has no sales orincome tax and is free of customduty, but these incentives dovery little to stimulate growth inthe renewable energy marketwhere RoIs and other financialratios have a long gestation or

breakeven period.

1. Diana Biggs, "Three Gorges Case Study"

http://www.arch.mcgill.ca/prof/sijpkes/arch374/win-ter2001/dbiggs/three.html

2. GLOBE-Net, "India: Renewable Energy Market"http://www.globe-net.ca/market_reports/index.cfm?ID_Report=1069

3. Ministry of New and Renewable Energy Sources, "CFAProvided Under Various Renewable Energy Schemes/Programmes" http://mnes.nic.in/cfa-schemes-programmes.htm

about the writer

Miriam Katz is a freelance writerbased in London. She currentlywrites for the EnvironmentalPeace Review. Her areas ofinterest include environmentalissues, renewable energy,biofuels and climate change. Sheholds a Bachelor of Arts inPolitical Science andEnvironmental Studies from theUniversity of Toronto. She can bereached at [email protected]


Conclusion

It is starkly evident that

Pakistan is a suitablecountry for the installation ofwind and solar: due to highwinds near cities; thepresence of rivers and lakesas well as the availability ofwind turbines from nearbyIndia. There are also otherreasons for installingrenewable energy.

In 2006, the governmentreported that Pakistanieconomic growth reached

8.4 percent and will mostlikely grow for theforeseeable future. It isquite normal for poweroutages to happen on adaily basis in the country,but this cannot continue ifthe Pakistani economy is togrow. In March 2007,President Musharraf statedthat renewable energyshould be part of the push toincrease energy supplies by

10 to 12 percent every year.The government has alsoset a target of 10 percent ofenergy to come fromrenewables by 2015. If itdoes follow through withaggressive capacityenhancements, Pakistancould be an Asian leader inrenewable energy given itsstrategic endowments.


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leapfrogging past green

Apaint factory catches fire. All the city's firebrigade is involved in trying to put out thefire. Still, the burning chemicals continue to

burn throughout the night. The firm puts out an ad

in the papers soon after telling the world that theyare back to business as usual. An insurancecompany puts out a press release telling the worldthat they have made the insurance payment inrecord time.

Life moves on in Pakistan. Was any questionasked as to who will bear the environmental cost?Did any spokesman for the company even verballyaccept the company's shortcomings - perhaps inthe shape of shoddy standards of safety thatresulted in the inferno?

This seems to be a perfect example of a companythat is solely and soullessly treating profits as theironly motive to exist. No higher goals here. Notriple bottom line considerations. HSE? Greenpractices? Stakeholder analysis? These seem likehigh flying ideals in the world where black and redseem to be the only colours we can see.

can blue be the next greenin pakistan?

by salman abedinfor tbl

march-april 2008 17

International ContextThis concept was introduced by international advertising firm

JWT, as one of their predictions for 2008.

Blue is the New Green: Climate change has quickly become thedriver of Environmentalism 2.0, and people worldwideunderstand that climate is all about the seas and the sky-both blue.Our effluents, our emissions, both impact these blue bodies.

Trend Alert: Watch for "green" to become a subset of "blue,"which is coming to denote the much larger emerging spirit ofgood-citizen ethics. Back to basics we learnt in our KG primarycolours art class.


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Pakistan today The world inthe 90s

The developedworld today

"The key driver ofEnvironmentalism 2.0 is theclimate, and most peopleunderstand that the climate is allabout the seas and the sky, bothof which are blue," shared AnnMack, Head of TrendSpotting at

JWT. Mack who goes so far as toclaim that blue will overtakegreen as the environmentalmovement's main hue: "Blue isthe new green."

The Blue>GreenEquationWith CO2 emission capping nowbeing a global priority, blue iseasily more important thangreen in terms of generatinghype and action towards theenvironment. This is now beingseen in a whole gamut of stepsthat companies are taking,including calculating andreducing their carbon footprint.Countries are also being

cornered by activists for beingslow on carbon reductions.Interestingly enough blue is alsothe colour of power andstrength, and hence, thecorporate world's reluctance toturn green may be finallyovercome (with a subliminalstart at least).

Turning Pakistan BlueHaving missed the whole"green" part of the

developmental cycle, Pakistan

may be able to leapfrog ahead tothe Blue Zone. Although it seemsquite unlikely. Both because anill-informed populace cannotbegin to demand its own rights,much less its rights in relation tothe integrity of the environmentit lives in. Also becauseregulations are tightening:developing countries after all,are being punished for the actsof the developed world, or so theargument swerves.

Companies, irrespective of thegovernment's stand on the issue,can start with the following:As a first step, companies mustto take a longer term view -which some do, and many don't,particularly regarding theexternal environments.Corporate entities generally takethe view that they are passiveparticipants in the largerenvironment. However, this isnot always the case, and throughindustry groups, and otherforms of lobbying, they caninfluence policy on a muchlarger scale.

Secondly, companies need tomake an assessment of the CO2or other greenhouse emissionsthey are responsible for. This iseasily begun by using a websitelike liveneutral.org, which hascalculators for individuals,companies and communities -

with the journey beginning for

'the price of a petrol tank'(depending on where you live ofcourse).

Thirdly, Sustainability, whichused to be a word bandiedaround by a group of 'treehuggers', is now the buzz word,and since corporate entities needbuzz words, let the new Word -with ensuing policy and action,of course- be: Bluing(!)

How to leap frog ahead to blue?

about the writer

Salman Abedin is currentlyExecutive Director at ContractAdvertising. He welcomes inputand discussion on the modelbriefly inserted for TBL

readership and can be reachedat [email protected].

1. http://www.jwt.com/pdf/news/trends2008.pdf)

2. (http://www.chicagotribune.com/features/lifestyle/chi-0124blueisgreenjan24,0,2901237,full.story)



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footprints in the air

air pollution prizes?

It is now a well known factthat we, humans, aresystematically ruining our

planet by disregarding thedamage done by industrialpollution and our wasteful life

style.

An average car, with a 1000 ccpetrol engine, produces about160 grams of greenhouse gascarbon-di-oxide (CO2) per km,besides many other pollutants.Our inefficient power plantstend to ensure that we producemore than 1 kg of CO2whenever we use only 1 kW(power) load for one hour(typically, a single 1.5 tons airconditioner uses 3 kW). And this

is not taking into account thevery high line losses of ourutilities which would increaseCO2 and other pollutants furtherby 30%. (Line losses are powertransmission and distribution

losses mainly due to overloadingof power cables andtransformers)..

In November 2006, the then-Government had taken a boldstep in approving EnergyEfficiency and ConservationLaws, by acceptance of the factthat energy efficient applicationswould be given priority whensanctioning our heavilysubsidized Sui gas supply. Eventhough these were approved in

the Economic and Co-ordinationCommittee of the Cabinet(ECNEC), no notice was takenby anyone and the authoritiescontinued to sanction gas forextremely inefficient

installations.

We cannot remain oblivious tothe basic need of reducing ourCO footprint, especially whenemitted from industries andcommercial buildings.Concerned publishers on theother hand are printing books(even Harry Potter) on certifiedpaper made from well-managedforests while large stores areasking suppliers to reducepackaging material.

march-april 2008 19

by ainul abedin

for tbl


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Our entrepreneurs cannot affordto continue to ignore even themost basic, common-senseapproach to environmentalawareness. We use the world's

most polluting sources, furnaceoil and coal as an economicalsource of energy, withoutcalculating in the real costs toourselves and the society we livein. Though coal is basically usedby most cement plants, furnaceoil is used by mostWAPDA/PEPCO and privatepower producers, accompaniedby some industries that have notbeen able to get gas supply.

Worse still, these highlypolluting fuels are used inextremely poor efficiencyprocesses, thus compoundingthe problems of environmentaldegradation - and resulting inconsiderable health costs andloss of production due to poorhealth and absenteeism.

Biggest Polluters:Furnace Oil PowerPlants?The biggest polluter prize couldperhaps be given to powerplants fired by furnace oil. Mostof our local furnace oil basedpower plants are of a low-efficiency type with high CO2emissions, in addition to otherpollutants. Most of our furnaceoil in use is imported, whichoften has a high sulphur content.However, in Pakistan, theseplants tend to lackdesulphurization units.

The result is enormous damageto the environment, with reallyno solution in sight since thesepower plants have beendesigned with a disregard ofeven minimum environmentalprotection.

All low-efficiency furnace oilpower plants will have to be 're-powered' to accommodate acombined cycle design, with a

change of fuel to gas if the

pollution levels are to becontrolled in the long term (andshort term).

This gas, in turn could be

sourced from our nation'splanned pipeline gas or future'coal-gas' from Thar coal.

Thar: Must Be PivotalPoint of Our EnergyPlanningThe solution to our energydilemma has been with us formany years but various lobbieswith seemingly vested interestsin the import of furnace oil have

ensured that till now our ownvast coal deposits at Thar areignored.

As a side - had Thar coal beendeveloped with sensibletechnologies, all talks of hugehydel power projects (involvingenormous environmentalcomplications and very highcosts) would have becomeredundant.

Now that Thar must become thepivot of our future energyplanning, we have to be carefulhow we use our low-quality coalsince both coal mining and coal-based conventional steam powerplants could very wellmaterialize into a nightmare foranyone concerned with theensuing high pollution levels.

Real progress towards energysecurity and environmentalprotection can come only when

both the government and privateinvestors confirm thedevelopment of environmentallyacceptable coal-bed methane forpower plants. For those aware ofthe gas supply network in theUK in the 1960s (when North Seagas fields had not beendiscovered), the base was "coalgas" - which met theirrequirements for many decades.

The advantage of coal-bed

methane for power plants is that

they provide energy securityfrom our own vast energysource, early initial power plantinstallation at the best locationwith minimum requirements of

water (very scarce resource inthis area at present) and apossible up-gradation tocombined cycle power plantoperations when an on-siteeconomic water source becomesavailable.

Second Place:In-house PowerPlants Average at 1/3UtilizationNot lagging behind inenvironmental damage are thehundreds of in-house powerplants being operated by manyindustries and large commercialbuildings, all over Pakistan.Although it is difficult toestimate the number of in-housegenerators installed in variousindustries and large commercialbuildings throughout thecountry, the writer believes it issafe to state that these are

producing around 1000 MW ofpower. Almost all of these powerplants are, again, low-efficiencytypes, with only one-third fuelenergy being utilized. To topthat off, they spend further,considerable energy and scarcewater to get rid of the remainingtwo-thirds of waste heat.

How can an energy-deficientcountry and its strugglingeconomy sustain these power

plants? The results are there foreveryone to see: exorbitant costsof production despite heavilysubsidized gas supply, makingour products uncompetitive.

Just as importantly, they causeserious environmental damage,which again in turn begetssignificant health-related costs.



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Third Runner Up:Industrial Steam, HotWater ProductionInstallationsSimilarly, inefficient productionof steam and hot water inindustries and large commercialbuildings is another majorsource of air pollution - andincreased costs. The AmericanSociety of Heating, Refrigerating& Airconditioning Engineers(ASHRAE) estimates that atypical gas-fired fire-tube boilerfor a 10 ton-per-hour steamoutput consumes the sameamount of gas as a Cogeneration

System would use for theproduction of a 10 ton-per-hoursteam output - but, with anadditional 3 MW of powergenerated, 'free' of any extra fuelcosts. Since no data is availablespecifying the availability of Suigas to conventional boilers forsteam and hot water production,it is difficult to quantify howmuch total power (free ofadditional gas, and thus free ofadditional pollution) could

become available, but this figurecould be estimated at around1000 MW. Investments foradditional power (free of gascosts) would normally have asimple payback period of 3-4years. In some cases, especiallyin composite textile unitsoperating 24 hours, 7 days aweek, this period could be aslow as 2 years.

Our latest grandiose living

philosophy has resulted inacceptance of chilling indoorenvironments in summer asopposed to perhaps sensibleairconditioning in essential areasonly, resulting in a magnitude ofwastage which even richcountries can not afford. Eventhe country-of-plenty is ensuringenergy and water efficiency.Moreover, green buildings areoften the norm for newindustrial construction indeveloped economies, based onbasic feasibility analyses.

However, almost all Pakistaniair-conditioning applications arebased on inefficient technologies.This applies to industrial processrequirements or large

commercial buildings for offices,hotels, hospitals, airport terminalbuildings and so on. Most ofthese airconditioningapplications use very lowefficiency systems and thesecause environmental havoc,besides exorbitant costs ofenergy - costs that are still rising,beyond currently unacceptablelevels.

All is not lost though; there are

some examples of responsibleenvironmental behavior that canmatch the very best anywhere.When a major car assembly plantin Karachi decided to add indoorenvironment temperature andhumidity controls in their paintshop, they did not follow the"norms" by adding over athousand tons of cooling, usinginefficient chilling and heatingprocesses which would havewasted considerable Sui gas

supply, besides resulting inincreased pollution levels andcosts. They insisted that theentire indoor environmentconditioning should be achievedthrough utilization of waste heatfrom the planned powergenerators and this cogenerationsystem should ensure CO2depression in considerablequantities compared toconventional KESC supply andgas-based central air-conditioning system.

Similarly, a large Pakistani bankchose to install an efficientcogeneration system in theirmain office in Karachi to ensureeconomic generation of powerand production of chilled waterfor central airconditioning in anefficient manner and thusconsiderably reduced their CO2footprint.

These are excellent examples of

CSR since both positive

economics and environmentalprotection were addressed,perhaps beginning withcommitment at the highestcorporate level. While soaring

energy costs were arrested inthese examples, the consequentpollution and social costs weremitigated simultaneously: theinherent, big-picture harmonythat CSR is all about.

about the writer

Mr. Ainul Abedin has over 46years experience in BuildingEngineering Services and is

presently an EngineeringConsultant specializing inEnergy Conservation. He holdstwo international EngineeringPatents. He is Fellow, ASHRAEand the co-author of theCogeneration chapter inASHRAE Systems Handbook forthe last 12 years, as well as acontributor to ASHRAEGreenGuide 2006. He has beenteaching Green BuildingConcepts at the Indus ValleyCollege for 8 years.

march-april 2008 21


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business intelligence

EIU surveys sustainability

impact on businessesreport byThe Economist Intelligence Unit 2008

The Economist Intelligence Unit (EIU)conducted a wide-ranging survey of over1,200 executives worldwide to investigateand assess the impact of sustainability on

business. EIU conducted numerous in-depth interviews with leaders of businessand non-governmental organizations(NGOs) as well as other sustainabilityexperts.

C The Economist Intelligence Unit 2008

S

ustainability is a change in attitude that aligns financial,social and environmental goals. Fortunately, businesses

rarely need to establish clear values for themselves.Instead, they need to apply the ones they have. In practice,companies are defining sustainability widely, looking at a rangeof relevant environmental and social goals. The specific formthat sustainability policies take, however, will inevitably beshaped by differing drivers and needs-economic and regulatory,as well as environmental and social- around the world, leadingto a bewildering range of activities involving every functionwithin business.

Although a few companies have a long history of addressingsustainability issues, business as a whole is still, as Mr Potter ofCoca-Cola puts it, at the "baby steps stage", scrambling toaddress the issues and experiencing the pains inherent inlearning to master a new area. Four key areas currentlyreceiving too little attention within business are: leadership;supply chains; reporting and metrics; and the transformation ofvalues into processes. At present, weaknesses in one or anotherof these will condemn too many companies to poor performancein this area. This presents more than a social or environmentalproblem. The financial benefits of sustainability remain unclear,but an understanding of where the economic advantages are-inparticular cost reduction and a range of untapped marketopportunities-can be very helpful to profits. Perhaps moreimportant, as the social and environmental forces drivingsustainability reshape the global economy, an inability tounderstand and perform in this area could be fatal for

businesses.

A georgraphically diverse sample of executives.

A diverse group of industries.



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Neither business, norgovernment, nor any otherstakeholder, can meet thesechallenges on its own. If they areto be addressed, however, it will

be through a messy period ofredefining, among other things,business's relationship with theworld around it, as well as thelegal and regulatory frameworkin which it operates. Companiesmust, at the very least, be part ofthat debate, for their own sakesas well as for that of society as awhole. Businesspeople have longrealised that the image of animmoral private sectormotivated only by greed is a

caricature, and a poor one atthat. Most think that theireconomic activity serves thepublic good. Moreover, theexecutives interviewed for thisstudy held that corporate valueswere not window-dressing, butat the core of what their firmsdid. The innovation thatsustainability demands is tointegrate these values into thestructures, processes andincentives that mould behaviourinside companies. Social andenvironmental initiatives shouldbecome a central part of thestrategy for corporate prosperity.

This report suggests thatcompanies are at an early stagein developing such anunderstanding. While 53% offirms worldwide surveyed bythe EIU claim to have a coherentsustainability policy, only half ofthese extend this beyond internaloperations to encompass their

supply chains.

Key findings from the studyinclude the following:

Business Knows thatit Needs to Raise itsGameOut of a list of 16 sustainabilitypolicies, encompassing issuesranging from energyconsumption and carbon

emissions to diversity and

governance, companiessurveyed for this report hadimplemented an average of just4.8 globally. Quantity aside,many executives also rated the

quality of their company's effortspoorly. More respondents saythat their organisation'sperformance has been poor inindividual areas ofsustainability, than those whobelieve their firms are doingwell. Just 6% rate theircompanies as outstanding whenit comes to the reduction ofgreenhouse gases, waste andpollution, compared with 15%who describe themselves as

poor.

But is OftenConfused by SuchNew and PoorlyDefined DemandsThe research shows that

companies have difficultydevising useful targets, andaligning social andenvironmental objectives withfinancial ones. Moreover,

management frequently lacks anunderstanding of whatsustainable development meansfor the organization."Sustainability, at differenttimes, can mean all things to allmen," says Dr James Suzman,Director of CorporateCitizenship at De Beers.

The Supply Chain isthe Weakest LinkExtending sustainability policyto suppliers is the area wherecompanies gave themselves theworst marks: about one-fifth saytheir companies have performedpoorly in setting strongersupplier standards on bothenvironmental and human rightsissues. About the sameproportion have onlyimplemented supplier controlsin the last five years. Theproblem is not new, andexamples of disastrous

consequences from socially or

environmentally damagingsupply chains abound. "This isnot charity: it is pure business.We create a better long-termrelationship with suppliers, have

better products, and bettercontrol over volume and price,"says Roland Waardenburg,Director of Corporate SocialResponsibility at Ahold.

A Lack of ClearLeadership onSustainabilityTony Juniper, an ExecutiveDirector at Friends of the Earth,says "senior management or

chief executive buy-in to theagenda is absolutely crucial" forreal change to occur. Most firmsunderstand that seniorleadership is critical here. But atmany other firms sustainabilityresponsibilities are dispersedthroughout the organization."Sustainability needs a strongseat at the table like procurementand finance," argues FrancescaDeBiase, VP for WorldwideSupply Chain Management at

McDonald's. "It is the wayeveryone should be thinking."

TBL Reporting NeedsMore WorkAlthough companies rate theirperformance on communicationhighly, efforts regarding formalreporting are less advanced.Only 22% of executives say theirfirms have formal Triple BottomLine reporting, although afurther 40% say they will adopt

it within five years. There is, inMr Juniper's words, "a hugelevel of disengagement" fromsustainability reporting.

Sustainability PaysMost executives (57%) say thatthe benefits of pursuingsustainable practices outweighthe costs, although well overeight out of ten expect anychange to profits to be small.Specifically, sustainable practices

can help reduce costs

C The Economist Intelligence Unit 2008 march-april 2008 23


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(particularly energyexpenditure), open up newmarkets and improve thecompany's reputation. The costsof implementation, however, are

not to be ignored: respondentsview this as the most formidablebarrier to expandingsustainability practices.

Strong Link betweenCorporateSustainability andShare PricePerformanceIn our survey, companies withthe highest share price growth

over the past three years paidmore attention to sustainabilityissues, while those with theworst performance tended to doless. The companies that ratedtheir efforts most highly overthis time period saw annualprofit increases of 16% and shareprice growth of 45%, whereasthose that ranked themselvesworst reported growth of 7%and 12% respectively. In general,these high-performing

companies put a much greateremphasis on social andenvironmental considerations atboard level, while the poorlyperforming firms are far morelikely to have nobody in chargeof sustainability issues.

Business Leaders areOpen to MoreRegulation on TBLIssuesExecutives in our surveys areoften opposed to increased

regulation. Not here. Fortypercent of those in our surveybelieve additional regulation isnecessary to tackle social andenvironmental challenges.

Another 50% say that voluntaryaction is generally moreeffective, but that additionalregulation may be required insome areas. However, thisopenness to new rules iscombined with the desire forclearer guidance about whatgovernment expects frombusiness.

The social and environmentalissues facing companies todayare not going away-and are

likely to involve a redefining ofrelations between business andsociety. This often involvesfundamental political and evenmoral questions. A goodsustainability policy needs toknow when, and why, to say"no" as well as "yes" tostakeholders' innumerabledemands.

Companies need to adjust byintegrating best practices in

these fields into their operationsand by joining the broaderdebate on the responsibilities ofbusiness, government andindividuals in addressing thesechallenges. If firms do not getinvolved in the latter, it will hurttheir own finances, as well as theenvironment and socialconditions worldwide.

C The Economist Intelligence Unit 2008

Eco-efficiency alert: More than half of the sample hasimplemented policy changes to reduce energy consumption,

and to improve governance in relation to the organization'senvironmental and social performance.

The TBL-adoption impact on financial performance: Over

30% believe that among the biggest benefits of sustainablepractices is manifested in shareholder value and profitability.

80% respondents report that in the next five years, board-level meetings will allocate almost 10%more time on the company's social and environmental impact.



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43% of the respondents agree that it is critically important that a corporate sustainability strategy meets the company'sobjectives of increasing revenues. Enhancing brand reputation and compliance with regulatory and legal obligations also rankhighly among the defined criteria.

More than half of the respondents report that their companies formally report on philanthropic activities, at least.

Interesting to note: Almost 60% correspondents adopt different standards for working hours and pay, given local laws.

march-april 2008 25C The Economist Intelligence Unit 2008


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The need for consumer education highlighted: Repondents believe that almost 40% of customers would not pay more for ethicalsourcing, carbon offset schemes or SRI practices.

Half of the respondents say voluntary business action ismore effective, but additional government regulation may berequired in specific areas.

Reinforced: It is critical that the top management, especiallyCEOs take interest in sustainability performance of theorganisation.

Less than one in three executives (29%) say their companyhas a coherent strategy that covers the whole business andits supply chain. Only 22% of executives say their firms have formal Triple

Bottom Line reporting.

26 www.triplebottomline.com.pk C The Economist Intelligence Unit 2008


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csr talk

challenge of the

21st century:advancement-poverty paradox

In your opinion, what istrue CSR? Or what is anunderstanding of

sustainable practiceswithin your sphere?CSR has been made synonymouswith corporate philanthropy (CP)in peoples mind whereas it is aboutsustainable development in the keyareas of social, environment andeconomic well-being oforganizations and societies at large.As economies globalize, newopportunities to generateprosperity and quality of life aredeveloping but these positiveimprovements are accompaniedwith new risks to the stability ofour environment and thecontinuing burden of poverty andhunger on millions of people. Thisparadox of advancement and

poverty is the challenge for the 21stcentury.

The key challenge of sustainabledevelopment is that it demandsnew and innovative choices andways of thinking.

While developments in knowledgeand technology are contributing toeconomic development, thesedevelopments also have the

potential to help resolve the risksand threats posed to thesustainability of our socialrelations, economies. Newknowledge and innovations intechnology, management, andpublic policy are challengingorganizations to make new choicesin the way their operations,products, services and activitiesimpact the earth, people andeconomies.

These emerging challenges are

forcing organizations to maintaintransparency in their operations.

With developments like the FTSESustainability Index, languagewhich 'corporate types' understand,will, in time lead to peoplerewarding companies with theirpurchasing power.

The investor of the future will lookfor companies who, besides giving

them profit, are also transparent intheir operations and plan to growin a sustainable manner.

What is the logical / validconnection betweencorporate philanthropy andstrategic CSR, in youropinion?Corporations can use theircharitable efforts to improve theircompetitive context: for examplethe quality of the business

environment in locations wherethey operate.

by khadeeja balkhifor tbl

HUSSAIN DAWOODChairman

The Dawood Group



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Using philanthropy to enhancecompetitive advantage aligns socialand economic goals and improveslong-term business prospects.Attending to surroundings enablesa company not only to give moneybut also to leverage its capabilities

and relationships to supportdevelopment causes.

What specific examplescan you share from yourcompanies of successfulCSR implementation? Inthese examples, what aresome ways, creative andotherwise, that ROI's(returns on investments) on

CSR initiatives have beenmeasured?Under our business-integrated,corporate philanthropy banner, weare now integrating CP into newbusinesses, at their inception.

Also, we've developed a waterconservation system through theuse of PVC lining and dripirrigation initiatives that are linkedto Engro Polymer's core products.

In the same category, related toEngro Foods' core business, we aredeveloping the capacity to enhancemilk production in rural Sindhthrough extension services thatfocus on improving hygiene, andanimal health initiatives.

Under our environment-basedinitiatives, at the Engro Chemicalplant for instance, we have acontinuous effort to reduce ourenvironmental footprint.

Additionally, we have developed a2015 sustainability vision forreducing water use, wastegeneration and reduction of greenhouse gases emission. We haveeliminated the use of CFC's incompliance with the Montrealprotocol. We are also activelyworking on carbon tradingopportunities under the Kyotoprotocol.

As part of our economic

transparency and efficiency drives,our project implementations areopen to public scrutiny through

environment impact assessmentstudies.

As far as the ROIs are concerned;for the economic and environmentinitiatives just shared, theinvestments are business decisions,

and are strictly ROI-based.

What might be your input tothe community on effectiveways to implement result -oriented CSR programmesthat are aligned with acompany's core business?If CP has to take roots in corporatePakistan, the alignment with corebusiness is a must. Businesses haveto see a gain from the initiatives in

the form of expanded markets,brand build-up, supply chainstrengthening and so on.

Microsoft and CISCO offer clearexamples of integrating CP withtheir core businesses by investinginto human capital throughtraining and development in coreIT skills not only to becomeproduct users but also to developskills to sustain themselves inemerging job markets.

I can share a few examples forinstance, from Engro on whatbusiness alignment could entail.Engro Chemical is investing in agri-extension services and balancedfertilization initiatives. Or EngroEnergy is exploring energyconservation projects.

Our challenge as a conglomerate:we are now evaluating how all theabove can be combined in a singleinitiative for synergistic

intervention in rural areas.

As chairman of the PPAF,how do you think CSR isviewed (in similarity and inopposition) by thedevelopment sector, and bythe business sector?I think trends relating to SocialResponsibility are coalescing, but ofcourse, the business and thedevelopment sector are

approaching it from differentdirections.

For the development sector, socialresponsibility is an end in itself. Itsees its role as one of reacting andresponding directly to humanconditions. Development sectororganizations are therefore at thevanguard of bringing about change

in society's attitude and (in theWest) have an acute understandingof the power of the media andcelebrities to accelerate socialchange.

On the other hand, it is the socialenvironment that prompts andeducates acceptable corporatebehaviour. Trend-settingcorporations now view CSR as away of differentiating themselvesfrom the competition and are keen

and proactive participants in it.They use the media to validate theirsocial responsibility credentials.

Hence, what began as a movementto ensure that corporates managedrisk adequately and thus had alicense to operate -after catastrophicincidents like Bhopal and ExxonValdez- is now about attractinghuman resources anddiscriminating customers whovalue social responsibility.

The process is similar in Pakistan aswell but is not as advanced orevident on a large scale. There isgreater understanding of the issuesand hence learning on both sides,which gives rise to collaborativeefforts towards the common good.

To me, examples of some of theemerging similarities include:

the need for implementingchange in a sustainable manner;the use of micro credit as a

developmental tool;the use of technology to impactdevelopment: telemedicine, andso on;a more 'business like' attitudetowards accountability andefficiency in social interventions,and;a greater orientation towardsresults.

march-april 2008 29

about the writer

As a Sustainability Consultant, Khadeeja

Balkhi helps organisations embed anddocument sustainable practies into theircore business models.


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csr toolkit

the people-centered

model of businessby ramla akhtar

for tbl



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The Four Life Zones

1. Spiritual (S) ZoneThis Life Zone deals withpeople's beliefs, ideologies,and life outlook - or the lackof them. Closely related tothe faith system of

individuals is their heart,their intellectual mind andfree will. To understand aperson or culture, it isimportant to understandtheir belief and spiritualsystem. A belief can be true,false, completely wrong, orabsent. S zone is the primaryPC-MoB zone, as itdetermines a person'sbehavior in the respectivelife zones.

2. Personal-Familial (PF) ZoneThe family is the basic unitof society. A person willalways be an individual, inthe context of their family -whether it's joint, nuclear, or

dysfunctional. Personalbeliefs shape familydynamics and families shapesociety. In Maslow's terms,the PF zone is where aperson seeks emotional andphysical security andstability. This determines thelevel and quality of peace insociety, and its creativeenergy.

"Our way is not of feats of action,

but feats of perception."

E Schuitema, author of "Intent" & "Leadership."Teacher of the "Care & Growth Model"

The DilemmaSometimes, we refuse to change notbecause we don't want to, but because wedon't know how to - and what to change to.

Consider the dilemma of contemporarycorporations within which kind souls wish tocreate a better world through business - butare caught in a world-view where businessis equated with "not doing good." Businessis based on economics, and that, at itscrude core is based on price and quantity.No wonder businesses only factor in Profits- not People and Planet.

What if we had a model that looked at thebigger picture?

PC-MoB: See The Big PictureThe People-Centered Model of Business(PC-MoB) is a practical tool through whichorganizations (businesses and others)examine the reality of their markets byfocusing on human activity. It has multipleapplication modules including: MarketInsight, Trend-Forecasting,Entrepreneurship, Creativity, OrganizationalLeadership, and Social Business - the lastis detailed in this article.

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3. Socio-Economic(SE) Zone

A person interacts with the

larger community foreconomic and social

purposes. This is where a

transaction occurs between

personal-familial values of

individuals and household

units as they begin to

interact with one another. A

shared vision that governs

these social contracts is

created out of those

dynamics. These in turn

determine society's collective

behavior.

In the SE zone, a person rises

above the self-development

and family care needs to

communicate with society at

large. Help is given and

taken. A person is both an

employer and an employee

in the economic system.

Information is traded;

people earn, save and build;

and money becomes a

medium of exchange.

Technology emerges to

facilitate the speed and

beauty of transactions

between people and

resources.

A person chooses their SE

zone behavior in line with

how they have developed in

the S and PF zones. Societies

that have accessible

information and opencommunication, where

transactions are facilitated,

and social contracts are

honored become creative -

and foster open opportunity.

Else, they are unfair and

transgressive. The latter are

marked by confusion,

resentment, violence and

warped employment

dynamics - as the case of

Pakistan could be

interpreted.

4. Ecological-Political(EP) Zone

Finally, a balanced humanbeing, or society, progresses

enough to participate in thelarger universe - of law,politics, ecology, and cosmicphilosophy. "Balanced"describes experiencing,learning, and evolving fromthe previous three zones.Some groups try to short-cutthe first three zones, and

jump into the universal zoneperhaps as a means to avoidtheir duties andestablishment of rights in theS, PF, and SE zones. Thatresults in a perpetual futileconflict between thesewishful idealists and society,which rightfully needs ablepersons.

In mature societies, the EPzone represents universallove, art, entertainment,travel, and discovery. Mediais the child and the lifebloodof this zone - because bydefinition, media is media

between the real productsand people who alreadyexist. A media that exists outof harmony with its ownsociety heralds its owndisabling throughfrustration. The institutionsof charity, establishment ofgood and prevention of evil,collective prayer, the judicialsystem, defense, foreignaffairs, and struggle are inthe EP zone. These are

higher level societalinstitutions that cannot beimposed on/by immaturepeople.

The CyclicRelationship of theFour Life ZonesThe Four Life Zones are notstrictly separate. Some rolesoverlap boundaries, others can

fit into other zones. In a way, the

four Life Zones are connected ina cycle: "The Circle of Life".When each zone reinforces theother, it's a progressive cycle.When each zone leads to

spillover, ill effects on the next,it's a vicious cycle.

Business = Busy-ness

Picture the Four Life Zones inmovement. Where an ill personis being treated, a householdmanager is preparing food, oneis building homes, or requiressafety, travel, or learning - it is"the busy-ness of life." Sincethese actions require a deep web

of "helpers" who are paid inmoney, business is created.Business is thus a part of thesociety, if it is based on the realneeds and understanding of thesociety. Whoever was trying tosell refrigerators to Eskimos wasa true conman, and diedunpopular.

The key is that our businesses

Documents

TBL Issue 2 Eco-Efficiency