ENVIRONMENT AND SUSTAINBILITY

Submitted by: Sudhir Kumar(PG20101298)

Suzlon Energy

Introduction
In general, sustainability means the capacity to endure. And sustainable business practices means the principles and values of your business for the environment and social responsibility. According to a study many companies are finding advantages in embracing and implementing a comprehensive, cohesive sustainability program. And they are also identify some benefits which respondents most often chose, better or more efficient businesses and practices; Increase profitability or shareholder value; and the ability to attract or retain new or existing customers. And the report also added that around 55% of united state companies are going to implement or planning to implement the sustainability business practices. The most populated brand should initiate the sustainable business practices so that the whole perception could be change. Companies should demonstrate towards the corporate responsibility so that everyone can understand the need of sustainable environment. The companies who are more focusing on energy cost savings, material efficiency and risk mitigation. Company sustainability comes it client and the customer If they can consider how business sustainability programs can help your business to improve sales, grow your business and differentiate your business from the competition. Energy saving, reducing the pollution, and waste reduction these are the main point in the sustainable business strategies. Sustainable business strategies of waste reduction, energy efficiency, and other operational efficiency measures reduce costs and enable competitiveness. By adding general eco awareness or simply incorporating a few sustainability concepts into and existing supply chain as best practices, companies can proactively address supply stability and quality issues from a different perspective.

Why Companies adopting Sustainable business environment?

There may be n number of reason to implementing or adopting the sustainability business like; related business objectives within the company, enhancing brand reputation, legal or regulatory compliance, reducing cost Product and service differentiation, to increase profitability and managing the sustainability risk. Besides these the customer retention and generating the shareholder value also be the reason of adopting the sustainability business environment. Sustainable business Process contains: Environmentally oriented materials selection

 Design to facilitate cleaner production Design for durability and extended product life Design for disassembly and recycling.

Sustainable business practices:

Energy saving: At the time of designing factory layouts, such as using larger diameter, shorter and straighter pipes to reduce friction, which reduced energy needs by more than 90%. Street lights, unnecessary use of light, can contribute in energy saving. Waste reduction: Waste from a business operation can be problematic in several ways. Disposal can be costly, more so if the waste is hazardous. If an industrial process is wasteful, it also means input costs will be higher. Many companies are beginning to view waste as a measure of inefficiency and several have set a goal of zero waste for their operations. This approach is also referred to as closed loop production, whereby output from one operation becomes input for another. Remanufacturing: Remanufacturing is a process several businesses are using to reduce waste and get more productivity from what they produce. Xerox, for example, developed a remanufacturing process for its copiers, using old parts and materials to make new units, generating new revenues and saving material inputs. Recycling the waste: Recycling involves the collection of used and discarded materials, processing this material and making them into new products. It reduces the amount of waste that is thrown into the community dustbins thereby making the environment cleaner and the air fresher to breathe. If recycling is done in a proper manner, it will solve the problems of waste or garbage. The main advantage of recycling is leads to less utilization of raw materials and makes the surroundings cleaner and healthier. Like Plastic bags, bottle, toys can be recycled. Reducing the Pollution: Pollution of air, land, water is the one of the main concern in todays time. Various toxic chemicals affect the health of plants, animals, and the people in different ways. Business owners need to familiarize themselves with applicable regulations and at minimum should consider adopting best management practices to reduce pollution from the enterprise.

SUZLON ENERGY
Originally a family textile business, Suzlon was one of those companies struggling with unreliable or expensive power. Finally it installed two wind turbines to secure its power supplies

and stabilize cost. The move worked so well that in 1995, the company moved out of textiles altogether and focused on wind power. Suzlon has since become one of the worlds biggest makers of wind turbines and a major player in the renewable energy sector, with revenues of US$ 4.6 billion in 2009. By manufacturing wind turbines and maintaining wind farms, it provides grid-connected, utility-scale wind power solutions that promote greater self-sufficiency in power. Suzlon has grown by an average of 10% annually over the past ten years. It now has about 17,000 megawatts installed in 28 different countries, which constitutes a global windpower market share of almost 10%. Practices Suzlon is committed to a sustainable solution to the energy challenges in India and the world at large. To expand its customer base, the company now provides end-to-end solutions, covering everything from site selection, building the turbine, setting up the project, to finally cashing the cheque for the power generated to the customer. Also, the company has consistently focused on reducing the cost per-kilowatt-hour of electricity from wind to make it more competitive against conventional sources, and to provide accelerated payback to its customers. Innovate Proactively The company invests in research and development to find new solutions to local power scarcities. One project led to a prototype for a windmill that, in addition to producing electricity, taps into the humidity in the air to produce water for drinking and agricultural use. To maximize its impact, Suzlon works with high-tech companies across the world and has set up its own R&D facilities in China, Germany, India and the Netherlands. In Belgium and Denmark, countries investing heavily in wind power, it goes further by co-operating with local universities and R&D centres. Embed Sustainability An integrated business model has allowed Suzlon to embrace sustainability in every aspect of its business, from strategy to investments and corporate culture, and to maximize the impact of its operations in the world. Its the whole piece working towards sustainability, said Chairman and Managing Director Tulsi R. Tanti. Thats the difference between conventional industries and our company. We are looking at the global economy and society and how we can promote affordable sustainability. At its headquarters, Suzlon has taken a whole campus approach to sustainability. It recycles all the water it uses and waste it creates, while power is supplied solely by zero-carbon wind and solar energies. Energy consumption is minimized through technologies such as low-energy airconditioning. The beauty of this campus is that the capital expenditure investment was 10% less

than for conventional buildings, said Tanti. So its not expensive, yet it is among the greenest campuses of its type in the world. Tanti believes the companys emphasis on sustainability can also encourage employees to think and act differently, fostering innovation. In its international expansion, the company fills senior positions overseas with local hires, rather than Indian expatriates. This helps Suzlon not only to absorb new technological, engineering and management expertise, but also to build an enterprise more closely identified with sustainability as a whole rather than with its origin as an Indian company. Building this culture of sustainability both inside and outside the company has not always been easy. Tanti stresses the need to change mindsets, educate people and invest heavily in human resources and talent management. The culture should start within the company, so that the employees can bring an innovative approach to the business. Shape the Environment Externally, Suzlon sees a huge challenge in getting the right policies in place to foster the development of renewable power, particularly in the United States. To address this, the company uses its knowledge and experience to inform and educate citizens and policy-makers. Internationally, Suzlon helps shape the debate on sustainability and renewable power through organizations such as the European Union, the World Economic Forum and the United Nations, as well as by talking to the media. For Tanti, spreading the word even among competitors is critical. He views competitors as potential customers, and supplies many of the top wind companies in the world with Suzlon technology. In a market that Suzlon believes has room to grow, it does not fear competitors, but rather sees opportunities for all players to benefit, expanding the global market for sustainable energy. Impact Business In developed markets, where Suzlon has achieved a significant brand reputation but where access to the grid is not an issue, the company provides infrastructure for a cleaner form of energy. Its acquisition of REpower Systems in 2007, the German wind turbine maker known for its leadership in offshore wind technology, has given it a significant foothold in Europe as well as access to export markets. And, with growth recently slowing in the United States and Europe, it wants to expand in emerging markets such as China and Brazil. Impact Environmental and Social

By distributing power generation, increasing affordability and reducing associated emissions Suzlon directly benefits its society and customers, many of whom were previously unable to access the national grid or had unstable access to power. This also means that Suzlon can make electricity affordable to previously excluded communities. We are helping directly and indirectly to build a sustainable India, said Tanti. Suzlon invests in research and development to find new solutions to local power scarcities. One project led to a prototype for a windmill that, in addition to producing electricity, taps into the humidity in the air

Challenges that can arise in the process and their Solution Seven sustainability challenges
Challenge 1: Thinking That Leads to a False Sense of Security Employees do only what management orders, and the organization strictly follows government mandates. Employees and the organization as a whole seldom, if ever, go beyond the requirements of their superiors. No one meaningfully challenges the linear economic paradigm or mechanical organizational designs that control thinking. This is the most serious of the seven challenges, because it creates an addiction to the directives of higher authorities and an abdication of personal responsibility. Challenge 2: A Silo Approach to Environmental and Socio-Economic Issues

In most organizations, different functions, such as environmental and labor relations, are usually assigned to separate units. Executives see sustainability as yet another special program and dont understand how it affects design, purchasing, production, and all other units. Because no single unit can identify all of the ways in which processes or products affect the environment or social welfare, the status quo is perpetuated.

Challenge 3: No Clear Vision of Sustainability Organizations struggling to adopt a sustainable path usually lack clarity about what they are striving to achieve. Without a clear vision, they often assume that being in compliance with the law is the sole purpose of their policies. But compliance is a backward-oriented, negative vision focused on what not to do. It depresses human motivation. Sustainability is a forward-looking vision that excites people and elicits their full commitment and energy. Challenge 4: Confusion over Cause and Effect

The prevailing mental models held by most executives lead them to focus on the symptoms, not the true sources, of sustainability challenges. Organizations spend millions to mitigate emissions and discharges, never recognizing that these are the results, not the causes, of their problems. Emissions and discharges stem from the ways processes and products are designed and the kinds of toxic materials, chemicals, and energy used to make them. Pollution controls temporarily mask these problems and keep organizations focused on managing effects rather than on designing out root causes. Challenge 5: Lack of Information People need a tremendous amount of clear and easily understood information to comprehend the downsides of the linear production paradigm and the benefits of the circular cradle-tocradle approach. However, most organizations fail to communicate effectively about the need for and the purpose, strategies, and expected outcomes of their sustainability efforts. Trainings, sign postings, and a few scattered events are insufficient to convey what a commitment to sustainable development involves or why employees should participate. Challenge 6: Insufficient Mechanisms for Learning When employees are given limited opportunities to test new ideas, and when they receive few rewards for doing so, not much learning occurs. Organizations struggling to become sustainable rarely institute mechanisms that allow workers to continually test new ideas, expand their knowledge base, and learn how to overcome barriers to change. Challenge 7: Failure to Institutionalize Sustainability The ultimate success of a change initiative occurs when sustainability-based thinking, perspectives, and behaviors are embedded in everyday operating procedures, policies, and culture; for example, when an organization links bonuses, promotions, new hiring, and succession planning to performance on sustainability. However, few organizations have incorporated sustainability in their core policies and procedures. Until they do so, employees will remain unconvinced of their employers commitment to this crucial issue.

The Seven Sustainable Solutions are :

Solution1: Change the Dominant Mindset Through the Imperative of Achieving Sustainability The false sense of security that people feel when they are in compliance with regulations must be undermined before employees will open themselves to circular cradle-to-cradle thinking and action. Disrupting an organizations controlling mental models is the firstand most important step toward the development of new ways of operating. Little change will occur if this step is unsuccessful.

Solution2:

Rearrange the Parts by Organizing Transition Teams

Once business-as-usual thinking has been shattered, the next step is to rearrange the parts of the current system. Doing so requires the involvement of people from every function, department, and level of the organization and key external stakeholders in analysis, planning, and implementation. Solution3: Change Goals by Crafting an Ideal Vision and Guiding Sustainability Principles The third key leverage point for cultural change toward sustainability is to alter the organizations goals. Change the goals, and different kinds of decisions and outcomes will result. Doing so requires a clear depiction of the new ends the organization seeks to achieve and guidelines for how decisions should be made to achieve them. Solution4: Restructure the Rules of Engagement by Adopting New Strategies After the organization has adopted new purposes and goals, the next Solution involves altering the rules that determine how work gets done. Doing so involves developing new strategies, tactics, and implementation plans. The organization should come up with both operational and governance strategies in this process. Solution5: Shift Information Flows by Tirelessly Communicating the Need, Vision, and Strategies for Achieving Sustainability Even when all other interventions have been successful, progress will stall without the consistent exchange of clear information about the need for the sustainability initiative and its purpose, strategies, and benefits. Effective communication engages people at an emotional level. Sustainability visions and strategies become internalized as people ponder what these changes will mean to them personally. Transparent communication opens the door to honest understanding and sharing. Solution6: Correct Feedback Loops by Encouraging and Rewarding Learning and Innovation Even with excellent strategies, obstacles will surface. To overcome the barriers to change, the organization must alter its feedback and learning mechanisms so that employees and stakeholders are continually expanding their skills, knowledge, and understanding. The adoption of new learning mechanisms leads to wholesale changes of traditional feedback systems that are oriented toward maintaining the status quo. Solution7: Adjust the Parameters by Aligning Systems and Structures with Sustainability Because internal systems, structures, policies, and procedures should not be altered until the right kind of thinking and behaviors have been identified and implemented, changing these parameters

is the last step in the change process. At the same time, the effort never actually ends at this stage. Change toward sustainability is iterative.