CONTENTS
01
About Us
02.
Global Compact Sri Lanka Message
The Sustainability Edge
06.
Mencafep Sri Lanka Ultimate Challenge
10.
Sri Lankan Cares Wins Asia Responsible Entrepreneurship Award
13.
SOS Children’s Villages Dinushika’s Life Change
16.
United Tractor & Equipment Skilled Youth
18.
LTL Holdings Global Presence. Local CSR
21.
British Council - Colombo The Gates Problem Futures - Social Innovation Forum
24.
Virtusa Sustainability
26.
Holcim Lanka Building Sri Lanka’s Future
28. 31. 35. 39.
Nestle Lanka Creating Shared Value Going beyond CSR Fashion Bug Small Brand. Big Business Edex A unique Social Enterprise Janashakthi Insurance Inspires Community Confidence
42.
Sustainability Tips
44.
Metropolitan Office Electronic Waste
45.
The Sustainability Ideas Four Ways to Green Your Office Environment
46. 50.
Singer Sri Lanka Electronic Waste MAS Holdings Less Choices Best Place Experience
60.
Tokyo Cement Group Biomass Energy
64.
Parakrama Jayasinghe Renewable Energy
69.
Majestic Electric Company Sustainable Lighting
70.
Hayleys Consumer Products Lighting and Safety
72.
Orel Corporation CFL Recycling Plant
75.
EasyGrow (Guarantee) Growing Plants without Soil
76.
Eco Friendly Volunteers Eco-Friendly Birthday Parties
77.
The Sustainability Thoughts Letter from a Mother to a Daughter
78.
Ceylon Tobacco Company Touching Lives Through Sustainable Agriculture
82.
Riaz Cader Yala - A Flawed Success Story?
88.
Ravi Fernando Strategic Corporate Sustainability
52.
Stafford Motor Company Sustaining Blue Skies
54.
The Sustainability Thoughts The AA - Hybrid Cars
56.
Jetwing Hotels As Green As They Come
92.
Prof. Uditha Liyanage Socially Responsible Business
59.
The Sustainability Thoughts Power - Light bulb for a year?
96.
Bandara Rajapakse Sustainability Reporting Practices The Sustainability Edge
HELLO!
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CHRISTOPHER STUBBS Chief Editor
C
hris Stubbs has been involved in teaching, social work and development work for over 40 years, in Europe and Asia. He came to Sri Lanka with ‘Voluntary Service Overseas’, a charity in the UK that sends professionals to share their skills. He fell in love with the beautiful island and a lovely lady, he is married with two grown up children.
He founded Mencafep in Sri Lanka 27 years ago. He has a Degree, Masters Degree, and Doctorate in Social Work and Disability. He has written many articles and papers about disability in Sri Lanka and the developing world. For his work with children, young people and their families in Sri Lanka, he was awarded an M.B.E. by Queen Elizabeth II.
NALAKINI WICKREMASINGHE Deputy Editor
Experience in the fields of market research, public relations and content management.
T
he importance of Environmental Sustainability was instilled in me at a very young age by my father, who truly believed in creating a sustainable future. Through this initiative we hope to enlighten individuals about the many sustainability efforts across the country, while also emphasising the need to further improve our environmental literacy. Thus, this initiative will be of great value for Sri Lanka to move forward as a Sustainable Nation.
RAVITH PERERA Chief Executive Officer
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here is a strong recognition that not very far into the future, business as usual will no longer be able to support human wellbeing because planetary boundaries are being exceeded at an exponential ratio. In order to cease our planet from reaching this point, structural changes will have to be made in our economic and social models. Through ‘The Sustainability Edge’ magazine, we aim to act as a mode of communication and also provide knowledge exchange in sustainable activities in Sri Lanka and across the globe. While, stimulating and encouraging creative thinking on how best to adapt sustainability in a multi–dimensional and development context, we hope to spur new investments and activities for sustainable outcomes. Thus, promoting and encouraging sustainable business models holistically, whilst concentrating on shifting the current economic-led growth models. Sustainable development is a fundamental factor that is going to reshuffle the entire deck. There are companies today that are going to dominate the future markets, simply because they recognise this key factor. Let us all rally towards a sustainable future!
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The Sustainability Edge |1
Sutheash Balasubramaniam Network Representative
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he UN Global Compact is a voluntary policy initiative for businesses that wish to advance sustainable markets and business models.
It is endorsed by chief executives, providing a practical framework to develop, implement and disclose sustainable corporate policies and practices. Launched in 2000, the UNGC has more than 10,000 corporate signatories from over 130 countries and is the largest corporate initiative in the world. The Global Compact Network Sri Lanka is a local body of the UNGC, which strives to ‘sustainably drive Sri Lanka’s economic growth’ and position Sri Lankan businesses committed to incorporating UNGC principles into their practices onto a global platform. Global Compact Network in Sri Lanka was the winner of the Asia Pacific Local Network in 2009 and the Top 10 Best Performing Local Networks in 2012. The UNGC recognises and addresses the need for sustainable development on a daily basis. Globally 93 percent of CEOs believe that sustainability is imperative in order to secure the future of their company, and 96 percent felt that sustainability issues must be fully integrated into strategy and operations (UNGC-Accenture CEO Study). Many Asian countries, like Singapore, Japan and South Korea have taken leaps in sustainably recreating products and markets, and redefining productivity in the value chain. The Global Compact Network Sri lanka congratulates and supports The Sustainability Edge magazine to inspire and facilitate stakeholders in Sri Lanka to embrace and implement corporate sustainability to drive reliable growth for organisations and the country.
2 | The Sustainability Edge
Š UNDP
A growing number of businesses in all regions recognise the importance of reflecting environmental, social and economic considerations in their operations and strategies.
Ban Ki-moon, United Nations Secretary-General
SOCIAL RESPONSIBILITY
ULTIMATE CHALLENGE AUTHOR : CHRISTOPHER STUBBS - FOUNDER MENCAFEP | EDITOR : ‘THE SUSTAINABILITY EGDE’ MAGAZINE
The ‘Ultimate Challenge’ for any society!
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umankind has taken up many awesome challenges, ranging from space travel and uncovering the origins of the Universe to unlocking the secrets of life in the DNA double helix; from polar exploration to design of computers which perform more calculations in an hour than the entire human race has performed since its beginnings. The technical virtuosity employed would have been unbelievable to the savants of previous centuries; indeed, it is amazing even to its practioners in the second decade of this century. One area of life still challenges mankind in a way that would be understood without difficulty in most times and places of human history; a challenge to which the response by 20th and 21st
6 | The Sustainability Edge
century humans is little further advanced than that of human ancestors and has indeed at times regressed to barbaric depths. It is the challenge of profound mental disabilities, in which the normal assumptions of human growth and developing individual autonomy do not hold good, even allowing for extra time and effort. MENCAFEP’s philosophy for the multiple disabled child and young person is as follows. “It is better to have some motion than lie still, it is better to sit than to lie, it is better to stand than to sit, it is better to walk than stand and it is better to run than to walk.” Profoundly disabled children and young people fulfilling their potential.
In Sri Lanka, there are people in one-room huts made from tin and tarpaulin. What happens to a disabled child in this situation?
What can be done? What should be done? What understanding and response is to be given by the individual, the local community and society at large, to persons with profound disabilities. What can and should be done? What can be recommended to such countries as Sri Lanka that are seen as a developing country?
M
ENCAFEP does not have all the answers to the above questions, but since its inception MENCAFEP has been the only organisation in Sri Lanka and some say in South Asia to work with profoundly disabled children and young people in the community with their families. Families with children with profoundly disabled children have moved their homes to be near a MENCAFEP centre so that their children can attend a school!
pairment, incontinence, no mobility, no speech severe learning difficulties and understanding of their environment. An individual can have all the above disabilities or a combination of them to be seen as profoundly disabled. Through the phase ‘profoundly disabled’, there are classifications from
moderate to high through too severe. However, MENCAFEP has a philosophy of working with the severely handicapped child. MENCAFEP believes the purpose of the profoundly disabled is to be joyful. That is what they are there for, to bring joy, to give joy.
Working with children/young individuals with profound/multiple disabilities have been called the ‘ultimate challenge’ for professionals, parents, family and the community at large.
Children with profound disabilities should have a voice, MENCAFEP clinic in which severely disabled child are motivated.
MENCAFEP DISABLED CHILD CLINIC MENCAFEP has learnt that it needs help to understand what these children and young people want. Parents and MENCAFEP again have taught each other how this communication can take place. MENCAFEP, its parents and community can communicate through movements or by watching the person’s breathing. MENCAFEP can communicate with symbols and pictograms. But MENCAFEP is also aware that these children must be included in the life of society! Children and young people with pro-
found disabilities are easily overlooked or even forgotten. In many developing countries, they may not live very long, because of the absence of medical technology, which will keep babies alive in Western Countries. Even abler children with Down’s Syndrome are rarely found in many African and Asian countries, if they do survive, they are often hidden from view by their families or by society; very few of them are likely to receive help, to attend any form of school or to find any form of work or training in adulthood. Their families rarely receive any support or assistance in helping their relative to be accepted by the local community. The Sustainability Edge |7
AUTHOR : CHRISTOPHER STUBBS - FOUNDER MENCAFEP | EDITOR : ‘THE SUSTAINABILITY EGDE’ MAGAZINE
What is profound disability? This is a multiple handicap in one individual, a person with severe brain damage, causing non/partial sight, hearing im-
H.R.H. PRINCE CHARLES THE PRINCE OF WALES VISIT The Prince visits to witness disabled children, young people and their families, live in and be part of their communities, to promote equal rights and opportunities for the disabled.
AUTHOR : CHRISTOPHER STUBBS - FOUNDER MENCAFEP | EDITOR : ‘THE SUSTAINABILITY EGDE’ MAGAZINE
It is the disabled child that is the last to get resources when they are handed out.
T
he future King of the United Kingdom and the Commonwealth, H.R.H. The Prince of Wales, Prince Charles empathised with MENCAFEP’s work, when he visited MENCAFEP – Nuwara Eliya on November the 16th 2013. Talking with the Founders of MENCAFEP (Chris and Ranji Stubbs) he expressed his concern for the lack of facilities for disabled children in the developing world. Praising and complementing the work MENCAFEP is trying to do for the disabled in Sri Lanka, especially the profoundly disabled. However, let us be honest, MENCAFEP’s work with profoundly disabled children is a ‘small voice in the dark!’ There can be little doubt that without a good measure of Government, INGO/ NGO and Corporate Responsibility financing, the distribution of knowledge, equipment, techniques and strategies
8 | The Sustainability Edge
will remain confined to a few isolated spots (like MENCAFEP) with a handful of beneficiaries. To have any realistic chance of ‘getting anything done’ for the profoundly and multiple disabled child and their families, together with interested professionals in Sri Lanka, need to plan a campaign over a five or ten year period, having clearly defined objectives and a hard boiled plan for reaching such children and families. ‘Society’, ‘Government’, ‘INGO/NGO’, ‘Financing’, are in most cases large, profoundly amorphous blobs which can absorb random impacts without any visible or practical effect. But they can be shifted and reshaped a little by a carefully organised and well-timed input.
Christophier Stubbs shows HRH Prince Charles around Mencafep in Nov 2013
TOGETHER TO BUILD TRUST - HAPPINESS - SUSTAINABILITY MENCAFEP relies totally on donations to keep its work functioning. With MENCAFEP being a community based project, it is now looking at the wider community within Sri Lanka to assist with it’s very unique work. What MENCAFEP needs help with is the direct costs, the costs that directly affect the disabled children, young people and the families that MENCAFEP works with. Partnering with a charity like MENCAFEP, business has the opportunity to make a difference in communities. For MENCAFEP this isn’t about just making an open-handed donation, it’s about sharing resources, skills and ideas.
MENCAFEP and outside resources provide ongoing training and learning experiences for all MENCAFEP staff members, who in addition to being Teachers, also serve as Social Worker(s), Healthcare providers and friends of the child(ren), families and community.
Play Time at Mencafep
Schooling and singing at Mencafep
Christopher Stubbs Founder MENCAFEP Editor ‘The Sustainability Edge’ Magazine Founded Mencafep in Sri Lanka 27 years ago. He has a Degree, Masters Degree and Doctorate in Social Work and Disability. He has written many articles and papers about disability in Sri Lanka and the developing world. For his work with children, young people and their families in Sri Lanka he was awarded an M.B.E. by Queen Elizabeth II.
The Sustainability Edge |9
AUTHOR : CHRISTOPHER STUBBS - FOUNDER MENCAFEP | EDITOR : ‘THE SUSTAINABILITY EGDE’ MAGAZINE
M
ENCAFEP was created to address the needs of disabled children, especially mentally disabled children and their families, firstly in Nuwara Eliya and then Batticaloa, Sri Lanka. Before the inception of MENCAFEP, there were no facilities at all for disabled children in the Nuwara Eliya District with a one million plus population. MENCAFEP is one of the few schools and centres in South Asia which works with disabled children and young people in a very unique way. MENCAFEP is a resource centre for training and for supporting other groups interested in communitybased rehabilitation of disabled children.
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I ADVERTORIAL
n recognition of the continuous efforts in developing and enhancing child healthcare across the country, SriLankan Cares, the community development arm of SriLankan Airlines was recently awarded the prestigious Corporate Social Responsibility Health Promotion Award, in the category of ‘Impactful Healthcare’ at the Asia Responsible Entrepreneurship Awards 2014. The award was presented at a special function held at the JW Marriot Hotel in New Delhi. The event was organised by Enterprise Asia; a non-governmental organisation in pursuit of entrepreneurship development across the region. The Asia Responsible Awards (AREA) programme recognises and honours Asian businesses for championing sustainable and responsible entrepreneurship
10 | The Sustainability Edge
through green leadership, investment in people, corporate governance, health promotion, social empowerment, corporate social responsibility and responsible leadership. As a responsible corporate entity, SriLankan Cares has been seeking ways to enhance and develop child welfare since its inception in 2003. Touching the lives of thousands of children through a number of social services, SriLankan Cares has been actively engaged in child healthcare projects that intend to transform the lives of children across the country. The award presented by Enterprise Asia highlights the projects carried out by the organisation in 2013 to uplift child healthcare in Sri Lanka.
As Sri Lanka’s national carrier, we have continuously been mindful of our larger role and have always been devoted to every community that we serve; be they our employees, customers, shareholders, suppliers and everyone who belongs to the SriLankan Airlines family. We are pleased to offer the world not only a friendly and affordable service but also a service that comes from the heart. Kapila Chandrasena CEO - SriLankan Airlines
Nishantha Wickremasinghe Chairman - SriLankan Airlines
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riLankan Cares dedicated 2013 to focus on child healthcare, in the areas of reducing child mortality, improving maternal health and other social concerns such as disability and heart diseases. Extending an arm towards guiding the next generation, our on-going and successfully completed healthcare projects initiated in 2013 include: the setting up of a Multi-Disciplinary Child Psychiatry Ward at the Lady Ridgeway Hospital in Colombo, implementing the Heart project in collaboration with Lady Ridgeway Hospital, Colombo and also the ‘Disability is Possibility’ awareness building campaign.
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Seeking ways to create a positive social transformation, SriLankan Cares strived to create an attitudinal change in society with the ‘Disability is Possibility’ project which enlightened people on the talents of differently abled individuals. The project aimed at shedding the prejudices set against the differently abled with special projects carried out through the year. The highlight of the project was the December Charity Concert which showcased the talents of Emmanuel Kelly to the Sri Lankan audience. The profits of the concert were invested on improving the Preethipura Children’s homes, which is an on-going project under SriLankan Cares.
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Identifying child mental health as an area that needs to be given extra attention, SriLankan Cares sketched the initial blueprints for a Multi-Disciplinary Child Psychiatry Ward in 2013 with the signing of a MOU (Memorandum of Understanding) between SriLankan Cares and the Ministry of Health. A total of LKR 8 million was invested on the project and this marks the first instance where a corporate entity in Sri Lanka initiated a project of this magnitude in developing child mental health. Endeavouring to create a better life for children with heart defects, SriLankan Cares also facilitated the visits of two separate paediatric cardiac teams from the Southampton University Hospital, UK. This was part of an exchange programme where visiting cardiologists and cardiothoracic surgeons shared their professional expertise and acumen with local medical officers.
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Taking an extra leap to help little one’s in need, SriLankan cares also initiated a special programme to assist children of low-income families who do not possess the financial strength to sustain medical treatments in overseas hospitals. SriLankan Cares came forward to assist these families by providing free air tickets and the finances required for critical surgeries in overseas hospitals.
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munities with proposals already being made to establish a Multimedia Health Promotion Unit at the Maharagama Cancer Hospital and also a project for the prevention of child violence and sexual abuse among the children in Sri Lanka.
As SriLankan Cares embarks on its next decade of services, we intend to broaden our scope by extending our arms towards a wider segment of com-
ADVERTORIAL
SriLankan Cares brings together and institutionalises the national carrier’s many programmes that have each been independently working towards the company’s goal of uplifting the needs of children throughout Sri Lanka. We have consciously involved ourselves in several infrastructure development projects, scholarships, seminars and workshops which have greatly enhanced the quality of health and education for children.
The Sustainability Edge |11
Dinushika’s life at SOS began when she was 10 years old. Upon inquiring about her life prior to joining the SOS family, Dinushika said that she actually has a biological mother, sister and brother, but that she had never met her father. Dinushika’s mother being the sole provider for three children was forced to enter at least one child to an orphanage. Dinushika being the eldest was the first to be considered. Fortunately for Dinushika, she was referred to the SOS Children’s Village in Piliyandala. “At first, it was very difficult for me to adjust to life at the SOS home, as all the other children who were there had already settled in. The children who my SOS mother was looking after were already calling her ‘Amma’ but I found it very odd to call another person by that term. However, my SOS mother never forced me to call her ‘Amma’. I was enrolled in the 4th grade at school even though I was supposed to be in grade 6 since I was 11 years old at the time. But since I had only attended school up to grade 1, they had no choice but
DINUSHIKA’S LIFE CHANGE Ready to Face any Challenge with her SOS Family beside her to enrol me in the 4th grade. When I was struggling with my schoolwork and when I was scared of going back to school after so many years, it was my SOS mother who was always beside me to comfort and support me and helped with my school work.”
My SOS mother has supported me so much throughout the years and I could clearly see how much she was sacrificing for me. As time passed by, I had no trouble calling her ‘Amma’ and the first time I called her that, it came out so naturally without any effort. Dinushika
Dinushika emotionally recalls with tears in her eyes, the time her biological mother came to watch her first netball practices after school, along with her other brothers and sisters. Her mother had waited in the playground till she finished her practices, because she was upset, in tears and refused to leave the premises. Currently, Dinushika is preparing to sit for her GCE Advanced Level examinations and is very much involved in extracurricular activities including netball. Every time she brings a medal or a certificate home, her SOS mother sheds tears of happiness and tells her that this is not the end of the journey and that she is capable of achieving so much more. Her mother also mentioned that there is more space in their home to keep the medals and certificates she is bound to win in the future. Dinushika wipes tears from her face while proudly stating the fact that she has brought home 151 certificates and several medals. This was all possible because of the strength and courage her mother has given her.
The Sustainability Edge |13
AUTHOR : NELKA ALEXANDER - ASSISTANT DIRECTOR
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am very excited to share a few pages off Dinushika’s life story as the road she is gliding through clearly goes to show how a child can bloom with proper guidance and support. Her SOS mother has been the key to this positive frame of mind, and Dinushika values the wise words of her SOS mother to this day, which has undoubtedly positioned her to achieve great heights in life.
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hen I asked Dinushika if she is ready for her GCE A/L exam, she recalled what her mother said to her when she passed her GCE O/L exam, which was that there is another big step ahead for her and that she should prepare for it without being satisfied with only one achievement. Heeding the wise words of her SOS ‘Amma’, Dinushika is well prepared for the next set of challenges ahead of her.
We invite you/your organisation to be a part of the lives of children like Dinushika and to help them lose their fear of abandonment. Thus, they would no longer have to be scared, knowing that there is someone is out their to catch them if they fall.
Nelka Alexander Assistant Director
As long as I know that my SOS mother and my SOS family are with me, I’m ready with a smile on my face, for any challenge which life brings me.
AUTHOR : NELKA ALEXANDER - ASSISTANT DIRECTOR
Dinushika
14 | The Sustainability Edge
Skilled
YOUTH
UTE reinvigorates training infrastructure, paving the way to attain solid careers for the youth of Sri Lanka
AUTHOR : NALIN MANORATHNE - GM-MARKETING & ADMINISTRATION
I
n a proactive bid to overcome the dearth of competent technicians in the field of construction and heavy machinery, United Tractor and Equipment (UTE) inaugurated a state-of-the-art training facility recently. UTE has also upgraded its Caterpillar service workshop into a star level facility with an investment of over a hundred million Sri Lankan Rupees. The training facility, affiliated to internationally reknowned Caterpillar training programmes, is a giant leap in the Sri Lankan construction industry. UTE has been one of the foremost providers of industrial training in Sri Lanka and the UTE Training Centre is also affiliated to the National Apprenticeship and Industrial Training Authority (NAITA). Since the early 1960’s UTE has trained hundreds of young school leavers in the fields of Construction Machinery and Power Generation. Many wellknown professionals in the industry can trace their beginnings to UTE. Many youngsters often coming from rural and challenged backgrounds 16 | The Sustainability Edge
have risen in their careers, uplifting their families along with themselves. Due to the high quality of performance and work skills displayed by UTE’s past trainees, the competencies of UTE’s training is well recognised both locally and internationally. The new UTE training facility located at Mabole, Wattala is comprehensively equipped to provide well-rounded training programmes. The facility comprises of six Engine Workstations, two Machine Workstations, two Generator Workstations, a Hydraulic and Transmission Workstation and Electrical and Computer Labs among its facilities. One of the unique features of this fa-
cility is the fault simulators lab, which is the first of its kind in the country. It has also attracted interest from other Caterpillar Dealers in the South Asian region, who are interested in replicating the technology. Armed with the expertise of Caterpillar certified trainers, the latest UTE training centre enrols school leavers in several batches every year. The duration of the training period will be three years, including 9 months of on the job training and 3 months for Caterpillar Certification Tests in the first year. As they progress to the 2nd and 3rd years of the training programme, the trainees will spend more time on practical
...improve the skill levels of technicians in the construction industry and to uplift the local community...
training. The first 2 batches of technical trainees have already commenced an Accelerated Basic Course in the new facility. At the completion of the training period the top performers will be absorbed into UTE’s permanent cadre. Commenting on the new training centre H. R. Ranasinghe, GM-Product Support of UTE said, “We are proud to be the pioneers in private sector training for technicians on construction machines and power generators. International level training is vital to the Sri Lankan construction industry, as there is a lack of professionally qualified technicians in the country. We hope to fill that gap and produce professionals who are able to quickly adapt to the rapid developments on the technological innovation front. Our training programmes follow the curriculum developed by Caterpillar University. Not only could our technicians, but our customers’ technicians also benefit from the training facility.”
Speaking further Ranasinghe said, “We believe this to be a timely venture of national level importance. Parallel to the economic resurgence of Sri Lanka, the construction industry has grown rapidly of late and the industry is adapting the latest technological innovations at the same speed. In this backdrop the country needs industrial training of a global level to stay abreast of the forecasted growth targets. We consider this a great opportunity to improve the skill levels of technicians in the construction industry and to uplift the local community”. UTE is the sole authorised dealer for Caterpillar Construction Equipment and Power Generators since 1947 and the first Sri Lankan company to market these products. CAT is currently, the leading brand of Construction Equipment locally as well as globally.
Nalin Manorathne GM - Marketing & Administration United Tractor & Equipment (Pvt) Ltd.
The Sustainability Edge |17
AUTHOR : NALIN MANORATHNE - GM-MARKETING & ADMINISTRATION
...pioneers in private sector training for technicians on construction machines and power generators...
Global Presence Local CSR A Truly Inspiring Sri Lankan Enterprise with a Global Presence
A AUTHOR : SRILAL MITHTHAPALA | CONSULTANT - BUSINESS DEVELOPMENT | LTL HOLDINGS (PVT) LTD
cursory visit to a plush setting at Park Street, adorned by a beautifully manicured lawn would give a casual visitor the impression that the property is a luxurious villa or is owned by an avid gardner with a green thumb. However, the striking premises is actually home to LTL Holdings. At grass root level an Engineering ‘outfit’ where one expects a very basic environment with little to no greenery and landscaping. In this splendid environment a dynamic and innovative group of minds meet to create and execute some of the most successful power projects this country has seen post-independence. LTL Holdings (Pvt) Ltd was established in 1982 with the help of European ex-
100% of Sri Lanka’s power transformers are produced by LTL. 20% of the current power generation of the country is from the LTL constructed and managed power station. Total capacity of 22.3 MW renewable power generation by LTL. 18 | The Sustainability Edge
pertise. Today, we are a wholly owned Sri Lankan corporation in the Power Sector. Currently, we are a multinational enterprise increasing our global presence.
A significant achievement is that
LTL Holdings is engaged in manufacturing, construction and servicing of power generation plants in strict compliance with the relevant international standards (IEC, BS, ANS) and also conforming to ISO standards (ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007)
the country is from power stations
What pushes our team to greatness is their unwavering dedication under the direction of its visionary CEO - U.D. Jayawardana . This driving force has seen LTL Holdings reach the pinnacle of success in the power sector over the past 30 years.
In the generation of, • Thermal Power • Hydro Power • Wind Power
100% of all power transformers in Sri Lanka are supplied by LTL Holdings (Pvt) Ltd. Approximately 20% of the power generating capacity of constructed and managed by LTL. Today, the LTL Group is a power-house; In the manufacture of, • Transformers • Steel Fabricators • Hot dip Galvanizing equipment
A constructor and service provider for, • Transmission Lines • Substations
OUR SUCCESS RECIPE The recipe for our success was sown in those early years by young professionals with strong Sri Lankan roots, a combination of skills and a flair for innovation which has reaped many benefits for the company.
Wind Power Plants
Hydro Power Plants
• Pawan Dhanavi Wind Power Plant, Norochcholai – installed capacity 9.8MW, commissioned in August 2012. • Naladhanavi Wind Power Plant – Thalawila – installed capacity 5MW, commissioned in August 2013.
• Nividhu Hydro Power Station – Belihul Oya – installed capacity 2.2MW, commissioned in April 2002. • Nividhu Asupiniella Power Station – Aranayake – installed capacity 4MW, commissioned in May 2005. • Lemasthota Power Plant - Badulla – installed capacity 1.3MW, commissioned in June 2011.
• Lakdhanavi Power Station – Sapugaskanda – The first Independent Power Producer (IPP) using heavy furnace oil with an installed capacity of 24MW and commissioned in November 1997. • Heladhanavi Power Station – Puttalam – Using heavy furnace oil with a capacity of 100MW and commissioned in 2004. • Yugadhanavi Power Plant – Kerawalapitiya – Tri-fuel combined cycle plant using heavy furnace oil with an installed capacity of 300MW and commissioned in 2010. • Thermal Power Plant – Megnahat, Bangladesh – Thermal power plant using heavy furnace oil with an installed capacity of 2x100MW and 1x50MW commissioned in April 2011/2013. • Thermal Power Plant – Shiddhirgani, Bangladesh – Thermal power plant using heavy furnace oil with an installed capacity of 100MW commissioned in Sept 2011. • Thermal Power Plant – Nature, Bangladesh – Thermal power plant using heavy furnace oil with an installed capacity of 52MW commissioned in January 2014. • Uthuru Janani Power Plant – Chunnakam, Jaffna – Construction of diesel power plant with an installed capacity of 3x8.3MW in 2013.
Transmission Lines Projects
Grid Substation Projects
• Vavuniya Kilinochchi Transmission Line Project (Lot B) – Design, Procurement and Construction of new 132kV Double Circuit Transmission Line with OPGW from Vavuniya to Kilinochchi & one galvanized ground wire for 2km each from Vavuniya & Kilinochchi ends (73km). • Upper Kothmale Hydro Power Plant (Lot 5) - Design, Procurement and Construction of new 220kV ACSR Zebra Double Circuit T/L from Upper Kothmale Power plant to Kothmale Grid Substation including one OPGW and one Galvanized Steel Earth Wire (15km).
• Vavuniya Kilinochchi Transmission Line Project (Lot A) - Design, Procurement and Construction work related to the new 132/33kV Grid Substation at Kilinochchi, and augmentation of the existing 132/33kV Grid Substation in Vavuniya. • North East Power Transmission Development Project (Lot A) - Design, Procurement, Construction and commissioning of the new Grid Substations in Polonnaruwa, Vavunativu, and Monaragala. Augmentation of Existing 132/33kV Grid Substation in Ampara.
The Sustainability Edge |19
AUTHOR : SRILAL MITHTHAPALA | CONSULTANT - BUSINESS DEVELOPMENT | LTL HOLDINGS (PVT) LTD
Power Generating Stations
Global Presence LTL Holdings has now cast its imprint globally in over 25 worldwide locations in Africa, Middle East and South East Asia. LTL Holdings has always been an environmentally conscious enterprise, committed to sustainability. Every available measure is taken when installing power plants to ensure that fauna and flora are protected. The company prides itself on maintaining its gardens with the same rigid standards applied to ensuring the quality of its power plants.
Corporate Social Responsibility
I AUTHOR : SRILAL MITHTHAPALA | CONSULTANT - BUSINESS DEVELOPMENT | LTL HOLDINGS (PVT) LTD
n keeping with its corporate vision, LTL Holdings has not been content with undertaking engineering feats alone. The company has been in the forefront of CSR and hopes its actions will have a lasting effect on local communities. The organisation’s very first CSR project was at the historical Ruwanweliseya in Anuradhapura in 1998, and this no doubt set the tone for a continuous and substantial funding of many similar religious sites and shrines within the country. The most impressive CSR project by LTL was the lighting of the Abhayagiriya Stupa in Anuradhapura, completed in 2009. Other noteworthy CSR projects: • Lighting of the Sri Maha Bodhi Sacred tree, the Bodhi Maluwa and street lighting of the ‘Perahera Mawatha’ at the Sri Maha Bodhi, Anuradhapura in 2002. • Lighting of the Stupa, Stupa Maluwa, Shrine Rooms and street lighting of the temple premises at the Kelaniya Raja Maha Viharaya in 2008. • Electrical rewiring and lighting of the Sri Dalada Maligawa, Kandy and the surrounding area in 1999. 20 | The Sustainability Edge
• Somawathiya Viharaya, lighting work in 2003. • Lighting work at Seruwawila Viharaya, in 2007. • Building and construction effort of the Paniadiya Kovil at Paniadiya, Noraichcholai, in 2011. • Building and construction work at St. Joseph’s Church, Paniadiya, Noraichcholai in 2013. • The entire construction and supply of medical equipment for the High Dependent Unit in Ward No 4 at the Lady Ridgeway Hospital, Colombo in 2014.
We have spent approximately Rs. 27 million overall on CSR activities in the recent past. We take pride in its support for such worthy ventures. We will keep striving to achieve our social responsibilities, as a way to give back to all Sri Lankans for the confidence placed with us.
THE GATES PROBLEM
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ill Gates’ definition of development is understandably old-school. You can’t expect a generation of people who over-succeeded in the golden-age of capitalism to change their linear-world-view and appreciate the new world problems with its new, complex and chaotic dynamics. With all due respect, and in no way disrespecting the great work they have accomplished, many of our corporate sector seniors fall into this category. They have been so successful in the old paradigm of business; it’s simply unimaginable for them to comprehend the new paradigm. In terms of explaining this paradigm with the aid of an example: Bill Gates argues that the ‘Green Revolution’ has increased agriculture productivity and that is a positive factor because it gives people
more food and money. But as we all know, the reality is that the ‘Green Revolution’ has polluted soil and water to the extent that almost everything we consume are contaminated with dangerous chemicals. It has created far worse problems in health leading to economic crisis in agriculture based economies around the world. While child mortality is declining, infertility is rising. The fact is that the engine of the so called ‘Green Revolution’, are the companies that make ‘hybrid’ crops, chemical fertilisers, pesticides and insecticides that are exploiting the situation. Just like with Microsoft products, when you’re solving one problem, 10 new, bigger problems arise. I can provide multiple counter-examples for Gates’ indicators of development. The new world’s biggest problems cannot be solved by single, linear solutions. CSR needs to radically change if you are genuinely interested in ‘solving’ social and environmental issues. Donation of books, sports gear, computers, ECG machines and water filters are very noble deeds, but that’s not going to solve most problems in the long term. This opens up a whole new space for innovation. Companies now have the challenge of innovating their products and services, business models and supply-chains to simultaneously solve social issues and create value for their shareholders, which is an exciting proposition. FUTURES – Social Innovation Forum address these challenging topics and find ways forward, towards a breakthrough vision. It’s an ongoing discourse between people from diverse backgrounds who believe that we need to make radical changes in ‘how we do business and everyday living’.
Here are three practical and immediate factors Sri Lankan companies can look into: 1. Appoint at least two board members who are less than 35 years old (millennials) and are active in solving social issues which are strategically relevant to your business. 2. Form an internal team that is dedicated to experimenting and developing socially innovative products and services, and can implement methods to lower your company’s negative impact. 3. Audit your suppliers at least three levels down your supply chain to identify any negative impact caused by their operations (e.g. labour, raw material, ethical etc). My intention in this article is to not in anyway undermine the great work done by Bill and Melinda Gates Foundation, but to highlight the urgent need to solve social issues in a radically changing world. Share your views: #beyond2020. The views expressed in this article are solely of the author.
Eranda Ginige Head - Partnerships & Business Development British Council Colombo
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AUTHOR : ERANDA GINIGE - HEAD PARTNERSHIPS AND BUSINESS DEVELOPMENT
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ill Gates in this year’s letter from the Bill & Melinda Gates Foundation said that “by almost any measure, the world is better than it has ever been”. His intention (which is a good one) is to influence the US government not to further cut their international development aid. His argument is that through aid and CSR type activities, the world’s biggest problems like extreme poverty and disease can be solved. Many of Sri Lanka’s corporate sector leaders think exactly like the world’s richest man, at least on the CSR front. In Gates’ view, more high-rise buildings, ‘partly’ polluted air, higher life expectancy, higher agricultural productivity, lower child mortality and higher GDP per-capita are the prime indicators of the “world being a better place”. I call this the ‘Gates Problem’.
Ravith Perera - ‘The Sustainability Edge’ Magazine
Vidhura Ralapanawe - MAS Intimates
Michael de Soyza - Dialog
Prithiviraj Perera - UNESCO - National Commission
The Sustainability Edge |23
AUTHOR : ERANDA GINIGE - HEAD PARTNERSHIPS AND BUSINESS DEVELOPMENT | PHOTOGRAPHS © : DIGIT IT MAGAZINE (DIGIT.LK)
Samanthie Gunasekara - Millennium IT
VIRTUSA SUSTAINABILITY Sustainability Framework
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s a leader in the IT industry, Virtusa prides itself with not only in the work we do, but also when it comes to giving back and caring for the environment. Taking special consideration and paying attention to our impact on the planet and its people, Virtusa has in place several key factors in place which take sustainability to the next level. Virtusa aspires ‘to reduce our environmental footprint, demonstrate ethical maturity and respect all’. Premised on our corporate values of: Pursuit of Excellence, Integrity, Respect and Leadership (PIRL), we believe in doing more, and better, with less. Accordingly, we leverage unique and industry leading tools to increase ‘right first time’ and ‘reduce cycle time’ by aggressively measuring and improving quality and reuse at the source. By doing so, we effectively reduce the carbon footprint of the products and services offered to our clients.
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AREA
FRAMEWORK
CURRENT STATUS
1
Health & Safety
OHSAS 18001
All offices in India and Sri Lanka Certified
2
Environmental, Water & Waste Management (Code Green)
ISO 14001
All offices in India and Sri Lanka Certified
3
Business Continuity Management
ISO 22301
All offices in India and Sri Lanka Certified
4
Information Security
ISO 27001
All offices in India and Sri Lanka Certified
5
Labor Standards
SA 8000 & GS 18
New policies and guidance under review
6
Anti-Bribery and Corruption
BS 10500
Policy signed in line with FCPA 1977 and UKBA 2010
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Climate Change Management (Code Green)
ISO 14064 CDP Reporting
Quantification is being done under the GHG protocol
8
Energy Reduction (Code Green)
ISO 50001 Guidance
Energy management targets being set and monitored
9
Management Engagement
ISO 26000 Guidance
Outline being prepared to incorporate aspects of these standards
10
Social Impact & Diversity
ISO 26000 Guidance
Digital Reach – Creating a digitally inclusive society. Campus Reach – Supporting the next generation of IT professionals to be workforce ready. Tech Reach – Using technology for good through software devolopment projects.
AUTHOR : RASIKA WITHANAGE - HEAD - MARKETING & SUSTAINABILITY
Our sustainability programme is based on the core elements shown in the adjoining table.
Code Green
Denver DeZylva, Director – Shared Services, receiving Gold Trophy in the Private Institute category at the National Green Awards from H.E. President Mahinda Rajapaksa
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ode Green, Virtusa’s environmental management system, was initiated in 2009. Code Green encompasses measures to manage the significant environmental aspects of our business operations: emissions, energy and water usage and disposal of waste material. In 2010, we initiated a process to obtain the ISO 14001 certification, which resulted in our Sri Lankan Advanced Technology Centre
(ATC) being certified in 2011 and all our Indian ATCs being certified in 2012. In October 2013, our Campus facility in Hyderabad was LEED Gold certified by the Indian Green Building Council. Since our baseline year in FY11, we have reduced our carbon footprint per full time employee (FTE) by 25%, our energy consumption per FTE by 25% and water consumption per full time employee by 14%.
Key Performance Indicators from FY11 to FY13
We have been submitting our data to the Carbon Disclosure Project since 2011. Our 2013 disclosure score was 74 against the global supply chain average of 49. The disclosure score measures the quality and completeness of a company’s response.
25%
Carbon Footprint * per FTE * Scope 1 and Scope 2 emissions
25%
14%
Energy Consumption per FTE
Water Consumption per FTE
VIRTUSA IN THE COMMUNITY
We believe in using our skills and knowledge to create a digitally inclusive society. Our strong culture of volunteerism means that many Virtusans volunteer their time, knowledge and skills to drive our corporate social responsibility projects and contribute to projects that benefit society.
IT for Good
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hrough our Tech Reach initiative we utilize our software development and consulting expertise to contribute to projects of social benefit. Tech Reach projects include Sahana, a disaster management system, developed by Virtusa for the government of Sri Lankan after the Asian Tsunami. Sahana has since been donated for public good and has been deployed around the world including the United States, Japan, Pakistan, and the Philippines.
Collaborating with Academia
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irtusa also believes in helping academia groom the next generation of IT professionals to be workforce ready. Through our ‘Campus Reach’ initiative, we provide internships, the ‘Virtusa Academic Excellence Awards’, the ‘Placement Engineer Scholarship’ program, advice on curriculum development, knowledge sharing sessions, teacher training, and mentoring for final year projects at university level.
Sustainability Recognition • Finalist - US Secretary of State Award for Corporate Excellence 2008.
Supporting National Integration
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irtusa developed a software application to help the government of Sri Lanka to manage the integration of ex-combatants with the civil society in a transparent manner and manage their vocational training needs. Virtusa also developed a Digital Learning Center (DLC) in Vavuniya to help provide IT training to ex-combatants. Now that the rehabilitation process has concluded, the DLC has been handed over to the Vavnuniya Campus of the University of Jaffna to offer IT education to university students in the area. This initiative was included as a case study in the Responsible Business Advancing Peace publication of the UNGC Business for Peace initiative, and also won the Special Award for Emergency Response at the 18th Annual Japan Sri Lanka Cultural Association (JASTECA) Awards (2013).
• Bronze trophy at the National Green Awards of Sri Lanka - 2012.
Rasika Withanage
• Case Study - UNGC Business for Peace - 2013.
Head Marketing & Sustainability
• Special Award for Emergency Response at the 18th Annual Japan Sri Lanka Cultural Association (JASTECA) Awards - 2013.
Virtusa (Pvt) Ltd
• Gold trophy at the National Green Awards of Sri Lanka 2013/2014.
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AUTHOR : RASIKA WITHANAGE - HEAD - MARKETING & SUSTAINABILITY
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irtusa has been a signatory and member of the United Nations Global Compact (UNGC), since 2008. We embody and practice the 10 principles through our management approach to sustainability and sustainable business.
BUILDING
SRI LANKA’S FUTURE Holcim Lanka Proudly Launches the Fourth Holcim Village in Akmeemana, Galle
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AUTHOR : ASELA IDDAWELA - VICE PRESIDENT, SUSTAINABLE DEVELOPMENT & EXTERNAL AFFAIRS
y laying the foundation for this new Holcim Village in early 2014, Holcim Lanka demonstrates its commitment towards its strategic sustainable development following its vision of focusing on the triple bottom line concept which encompasses economic return, social responsibility, and environmental protection. It follows up three previous projects carried out in Medirigiriya, Eluwankulama and Puttalam comprising over 50 houses. The Holcim Villages is a major highlight of the Holcim Lanka CSR calendar and targets the fulfillment of community wellbeing by providing housing for low income and underprivileged families. The Holcim Village in Galle specifically addresses the needs of the community surrounding area of Ruhunu Cement Works. In order to be able to serve the real needs of the community, Holcim follows the guidance and direction of the Community Advisory Panel (CAP), which consist of Holcim’s key Community stakeholders, consisting of community Bodies and Government officials of the area, who are fully aware of the needs of the community. Through the CAP, Holcim Lanka hopes to make a long term impact on alleviating the
26 | The Sustainability Edge
living standards of the community. This project follows closely in alignment with other social upliftment projects carried out by Holcim Lanka. Holcim Lanka has taken on the responsibility of facilitating the design, construction and supervision of the Holcim Village initiative. The Rs. 12 Million project will house 13 homeless families upon completion in fully fledged housing units with electricity, water, and road access. In addition to empowering the community, Holcim Lanka has also made a commitment to lower the carbon footprint of the project by ensuring the practice of ecofriendly principles in the design architecture of the houses. The recipients of the homes were selected by the Akmeemana Divisional Secretariat, by taking to account the criteria of low income, no ownership of property and families with more than three members, irrespective of ethnicity and religion. The government provisioned land was identified and granted for the project under the direction of MP, Dr. Ramesh Pathirana, who greatly assisted the implementation of the project.
FOUNDATION LAYING CEREMONY
Mr. Philippe Richart, CEO of Holcim Lanka, Hon. Gunarathne Weerakoon, Minister of Resettlement, and Dr. Ramesh Pathirana, MP, Galle District participated as distinguished guests at the foundation laying ceremony.
HOLCIM LANKA Holcim Lanka is part of the Holcim group, one of the leading global construction materials company. The company currently operates one fully integrated cement plant in Puttalam, and is also in the process of more than doubling its grinding plant in Galle to meet the demand growth of the Sri Lanka market. Today, Holcim Lanka provides a range of application-based cement products alongside the provision of technical expertise through the Holcim Innovation and Application Centre, which help defining with customers the optimum solution. The company currently operates island wide with an established network of distributors, united under the vision of ‘building Sri Lanka’s future’.
Dilaw Manjula receives home ownership deed from Hon. Gunarathne Weerakon
Philippe Richart CEO - Holcim Lanka
Dilaw Manjula A Selected Recipient
Asela Iddawela Vice President Sustainable Development & External Affairs
Hon. Gunarathne Weerakon Minister - Resettlement The Sustainability Edge |27
AUTHOR : ASELA IDDAWELA - VICE PRESIDENT, SUSTAINABLE DEVELOPMENT & EXTERNAL AFFAIRS
Holcim Lanka is actively seeking to uplift the lives of the community that surrounds us, as a responsible business and a sustainability conscious company of the country. Under our vision of sustainable development, and as a private company we are committed to assisting in meaningful projects and contribute to the development of the country.
I am very proud to be a part of this Holcim initiative. Most companies do their CSR for promotional purposes. However, Holcim has gone to great lengths to execute their commitment to the communities they operate in, resulting in 3 other villages which I wasn’t aware of until this day. We have faced many problems over the years; in order to grow as a country, we need partnerships like this where we leave race and religion aside and work together. Holcim has approximated the project to be completed in 06 months and to be of great contribution to the empowerment of the community.
Today, is the luckiest day of my life. Everyone else who is selected to be this lucky also live like me and with no proper shelter. This is like a dream, come true. It is truly a dream, I am very thankful to Holcim and everyone who is helping to provide shelter for me and my family.
CREATING SHARED VALUE GOING BEYOND CSR
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t Nestlé, the concept of Corporate Social Responsibility has evolved into what they call ‘Creating Shared Value’ (CSV).
Nestlé Healthy Kids Programme
The concept of CSV begins with the understanding that in order for a business to prosper, the community it serves must prosper as well. It encourages businesses to focus on the social issues that they are uniquely capable of addressing, in order to be able create value for society over the long term.
As a company, we are best positioned to create shared value (or joint benefit) in three areas; nutrition, water and rural development. These activities are core to our business strategy and operations and vital to the welfare of the people in the communities where we operate. Ganesan Ampalavanar Managing Director Nestlé Lanka PLC
NUTRITION
ADVERTORIAL
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s the world’s leading nutrition, health and wellness company, Nestlé believes that its future lies in helping people achieve a healthier and balanced diet and live an active lifestyle. It recognises that in addition to providing consumers with products that offer ‘tasty nutrition’, empowering the public to understand nutrition has equal importance in enhancing overall nutritional status. 28 | The Sustainability Edge
Key amongst the company’s many nutrition education initiatives is the Nestlé Healthy Kids Programme. The Nestlé Healthy Kids Programme is designed together with the Ministry of Education Services and the country’s premier higher education institution, the University of Peradeniya, to raise awareness on nutrition, health and wellness and promote physical activity amongst school age children. The programme addresses key areas identified by an assessment of local community needs and a nutritional gap analysis. Nestlé Healthy Kids was launched in September 2010 and is currently rolled out to a minimum of 2,000 children across the island each year. The programme was endorsed by Madam Shiranthi Rajapaksa, First Lady of Sri Lanka in 2011 and in late 2013, was officially incorporated into the Government’s island wide “Poshanayai Suwadiviyai” nutrition awareness campaign for school children. This enables the Nestlé Healthy Kids Programme material on nutrition education and healthy living to extend its reach to over 7,500 secondary, public schools across the country.
Working together with health professionals and stakeholders, we aim to be part of the solution to help families improve their nutrition, health and wellness. Ganesan Ampalavanar
RURAL DEVELOPMENT
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estlé’s approach to rural development aims at ensuring thriving farmers and thriving communities. The company works at farm and community level to provide education, training and technical assistance to improve yields, safeguard incomes and improve the quality of life via employment and economic development. As a result Nestlé indirectly impacts the livelihood of over 23,000 rural based Sri Lankan farmers and their families. As Sri Lanka’s largest private sector buyer of fresh milk, Nestlé plays a big role in helping to develop the local dairy industry and increase local fresh milk production. The ‘Good Food, Good Life’ company is also Sri Lanka’s largest exporter of value added coconut products and one of the world’s leading exporters of Coconut Milk Powder. 2013 saw Nestlé contribute almost Rs. 5 billion to the rural economy. The company procured 62 million kilograms of local fresh milk from 18,000 Sri Lankan farmers for its dairy based products, marking its highest ever milk
Nestlé Dairy Farmers
collection in Sri Lanka. It also procured 56 million coconuts for its Maggi Coconut Milk Powder. In 2013, the company’s rural development efforts in Sri Lanka was recognised by a UNGC (United Nations Global Compact) publication on “Responsible Business Advancing Peace”, which featured a case study on Nestlé Lanka’s work in developing the dairy industry in the North and East regions as a best practice.
We believe that in order to prosper, we need the communities we serve in to prosper as well; and that over the long term, healthy populations, healthy economies and healthy business performance are mutually reinforcing. Ganesan Ampalavanar
Nestlé Drinking Water Fountains
WATER
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n the area of water, Nestlé’s efforts are centred around the six elements of the UN Global Compact (UNGC) CEO Water Mandate.
With every Nestlé Clean Drinking Water project that is implemented in a school, ‘water education’ becomes a part of the school curriculum, creating awareness on water conservation and the link between clean water, hygiene, health and wellness.
For a company like ours to prosper, we must take a long-term view based on respect: respect for people, respect for cultures, respect for the environment and respect for the future of the world we live in. We will continue to uphold our commitments to go beyond simple compliance; Creating Shared Value for all our stakeholders in all that we do. Ganesan Ampalavanar
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ADVERTORIAL
In order to provide safe drinking water, Nestlé has built clean drinking water projects in schools, hospitals and places of worship, benefitting over 18,500 children and hundreds of thousands of people in rural communities. These units are built by drilling bore wells or using existing deep wells and installing water pumps and storage tanks.
SMALL BRAND BIG BUSINESS
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ashion Bug was founded in 1994 in Bandarawela with a 7 member team. The first shop being a mere 300 square feet in the Bandarawela town. The founders of the company are: Rizal Subian, Ashan Subian, and A.C.M. Tharick. Today, Fashion Bug has evolved into a household brand that boasts of 17 outlets island-wide.
When Fashion Bug opened its doors 20 years ago amidst the chilly town of Bandarawela in a 300 square foot shop space, little did we know that we were about to embark on an inspiring journey to the pinnacle of fashion retail in Sri Lanka. A truly Sri Lankan brand in essence, Fashion Bug empowers over 2000 small and medium size Sri Lankan entrepreneurs, taking pride in providing the latest clothing designs.
Sisu Dirimaga Foundation
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Another CSR initiative by Sisu Dirimaga Foundation of Fashion Bug has organised a series of island wide career guidance workshops together with the Provincial Education Offices for students, who are sitting for their Advanced Level examinations. The foundation will be conducting these programmes in over 120 schools island-wide and over 100,000 students will benefit as a result of this. We have already conducted these programmes in a total of 13 schools, with over 2250 students having participated in them. The resource officer in charge of these workshops is Ajith Jayawardana – Senior Career Counselor at the Univer-
Sisu Dirimaga Foundation is a sustainable CSR platform as opposed to miscellaneous one-off projects that lack long term objectives. The Sisu Dirimaga programme will ensure that all the projects will stem from one key platform, establishing a clear CSR identity for Fashion Bug as a responsible corporate citizen, as well as give our customers the satisfaction of being part of a noble national cause. This was initiated by Shabier Subian - Director of Fashion Bug; under his guidance and support, we will be continuing for the further betterment of the school children. Dr S.H.M Faraaz Deputy General Manager
sity of Colombo, who is supported by the respective educational ministries of each province. Some of the topics discussed in the program are: effectively coping with academic and social pressures, time management, and self-assessment. The achievements of successful leaders and professionals are presented to the students, which serves as further motivation to achieve their goals.
AUTHOR : SHABIER SUBIAN - DIRECTOR
he drinking water project that was completed and presented to the Ovitigamuwa Maha Vidyalaya, is by far the most important project initiated by Fashion Bug. Students of the school are determined performers in spite of their difficult circumstances. They have been drinking water with high levels of iron for the past several years. Water that was deemed unsuitable for human consumption by Public Health Inspectors and continued usage would result in long term health adversities. Fashion Bug Sisu Dirimaga Foundation installed a tube well and a system that distributes pure drinking water throughout the school by a filter system, fulfilling the dire need for pure drinking water.
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OUR IT COMMITMENT
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n contributing to information technology (IT) literacy at a regional level, a computer lab was presented to the Thumbe Kanishta Vidyalaya; a school with just over 200 students representing all ethnic groups, situated in the rural surroundings of Kamburupitiya, located in southern Sri Lanka.
Children are our future and with that in mind, we are very delighted to touch their hearts by providing them with the little things that matters the most to them. The computer lab presented will enable students to prepair themselves with the basic IT knowledge and skills required for entering the technological workplace. Improving the computer skills of students is earmarked as a primary goal by the Information and Communication Technology (ICT) sector in Sri Lanka, with initiatives taken to provide computers and online access for children to improve their learning with educational software. Sisu Dirimaga Foundation is proud to be a part of the Sri Lankan ICT sector’s primary goals, in assisting rural schools like Thumbe Kanishta Vidyalaya that was in need of a computer lab with internet access.
We reached many organisations that visited us and noted down the school’s shortcomings but never really did anything about it. Fashion Bug responded to our request within a week and two weeks later we were presented with the computer lab. The students are very excited as they haven’t seen a computer in their lives before. Pushparani
AUTHOR : SHABIER SUBIAN - DIRECTOR
Principal Thumbe Kanishta Vidyalaya
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he Government, Public, and Private Institutions are taking a series of initiatives to develop the Information and Communication Technology (ICT) sector in Sri Lanka. It is with no doubt that the country will be able to increase its computer literacy to 75 percent by 2016 from the present 30 to 35 percentile.
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DAMMIKA KITHULGODA SCHOLARSHIP FOUNDATION Sisu Dirimaga Co-Sponsors Dammika Kithulgoda Scholarship Foundation
Chief Guest - Prime minister Hon. D M Jayarathna
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n event was organised by the ‘Parliament Sevaka Sangamaya’ to grant scholarships to students who sat for the GCE (O/L), GCE (A/L) and Grade 5 scholarship examinations islandwide who achieved distinctions and merit passes in the year 2012-2013. Dammika Kithulgoda and Sisu Dirimaga foundations were proud to be the main sponsors for the event. More than 600 students were honored at the event which was held at the parliament complex. The Chief Guest for the event was the Prime minister Hon. D M Jayarathna, and other parliamentary officials were also present at the event. Ms. Visharada Deepika Priyadarshani who graced the event, gave the audience a special performance.
Shabier Subian Director Fashion Bug (Pvt) Ltd.
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AUTHOR : SHABIER SUBIAN - DIRECTOR
Children are our future and with that in mind, we are very delighted to touch their hearts by providing them with the little things that matter the most to them.
EDEX EDEX – A Unique Social Enterprise DARE TO DREAM
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he world is moving towards a knowledge based economy, where the ‘right knowledge’ with ‘market relevant skills’ would be ‘key’ to achieve economic success, for citizens and nations.
Several years ago, a group of members from the Royal College Union aspired to create a single platform to showcase the vast options and opportunities available in the global education market while providing the necessary requirements to attain the relevant skills development and training. Thus, leading to multiple employment opportunities. Envisioned to ‘Empower Sri Lankan Youth to be Globally Competitive’, EDEX was launched in 2004 as Sri Lanka’s pioneering and largest educational expo. With several layers of value additions introduced over the years, EDEX today is a multi-faceted platform and a premier brand living up to its vision. EDEX is a multi-stake holder CSR initiative facilitated by the Royal College Union. Its activities are supported by many of the senior students at Royal College, specially the dedicated Senior Prefects, who passionately contribute as volunteers for all our events.
LIVE YOUR DREAM PROGRAMME
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DEX launched the ‘Live Your Dream’ programme in 2012 to mark ten years of service to the nation. The programme is aimed at helping aspiring youth to gain the necessary educational and skills development to attain a job in the field they desire, which would also benefit their communities. The youth of our country conceptualise many dream projects of invaluable benefit to the communities they belong to, yet there is little help to see them through, mainly due to lack of financial backing and resources. These projects distinctively focus on communities with actual needs, as they emanate from direct beneficiaries themselves. Most of these projects may never be conceptualised due to the lack of leadership, guidance, suitable managerial capacities, fiscal and physical resources, etc.
EDEX ‘Live Your Dream’ facilitates the implementation of such projects with the use of minimal resources irrespective of the location. Projects catered to include assistance with providing quality education to rural schools, promotion of inventiveness and creativity, soft or technical skills development, vocational training, promotion of green sciences, green energy and re-cycling or similar practices, while also minimising depletion of natural resources. Thereby, leading to sustainable living. By now, more than 46 such projects have been completed by the programme. Projects implemented include: upgrading of school libraries and IT facilities, completion and construction of new school buildings, career guidance and leadership development programmes, donation of sporting goods, etc. The ‘Live Your Dream’ concept spreads across all 25 districts of the island. The initiative offers opportunities for corporate citizens and philanthropists to join hands to support their civic responsibility. The Sustainability Edge |35
AUTHOR : KAMAL ABEYSINGHE - CHAIRMAN
Many youth in Sri Lanka face numerous challenges and inequalities, mainly due to restricted opportunities and the lack of awareness of available choices. Even those graduating from local universities have their share of challenges. In the absence of credible career guidance, these youth waste a lot of time, effort and money leading to, perennial frustrations and even making the wrong career choices.
Virtual Platform www.edex.lk EDEX has a greater role to play for the benefit of aspiring youth, especially for those in rural areas with limited access to knowledge. EDEX reaches them through its comprehensive website www.edex.lk, launched in 2007, which is a virtual interface of the entire programme. By partnering with the SchoolNet portal initiated by the Ministry of Education and Nenasala project implemented by the Information and Communication Technology Agency of Sri Lanka (ICTA) , the website reaches a vast segment of rural youth.
EDEX Job Fair
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ntroduced at the EDEX Expo in 2014, the Job Fair was a colossal step taken with the objective of becoming a conduit between the seekers of ‘right employment’ and the ‘right employers’. The job fair catered to the demand and supply of the job market all under one roof and turned out to be a great success during its inaugural year.
EDEX Careers
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nitially while starting up as EDEX’s career guidance arm, the EDEX Careers initiate now lights the path as a national career guidance programme.
EDEX Careers provides youth with an insight into diverse career paths that are available. A trained career guidance team caters to the needs of the youth, empowering them to make the best choice for their career.
EDEX Magazine
AUTHOR : KAMAL ABEYSINGHE - CHAIRMAN
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here is a significant gap in career guidance, with certain segments of the population being unable to reap the full benefits available due to various restraining factors. The EDEX Magazine was launched as a quarterly edition since October 2010, to provide career guidance to Sri Lankan youth to share emerging new knowledge with all the communities. Endorsed by the Ministry of Education, this trilingual magazine is sent free of charge to all post-secondary schools island-wide including government assisted schools, all state universities, technical colleges and selected public libraries. The magazine also available for sale at selected bookshops and super markets. 36 | The Sustainability Edge
EDEX Careers Speech at rural school
The website consists of a job seekers portal where any individual can upload their CV on-line and the data is collated to a central database. Prospective employers are able to access the database and filter the data and identify skilled youth according to their requirements. This offers the unique advantage of an individual’s CV being seen by many prospective employers, which benefits the applicant as well as the potential employers. Additionally, the website also contains a section with the list of youth who have been awarded the National Vocational Qualification (NVQ) offered by the Ministry of Youth Affairs and Skills Development and the list is uploaded with the assistance of the Vocational Training Authority.
EDEX Sithuwam
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ife skills mould a person to navigate one’s life as a fulfilled human being. Extending itself beyond career guidance, EDEX launched a nation-wide art competition in 2008 to support the creative art community of the country by launching, EDEX ‘Sithuwam’. The exhibition is pivotal in championing many youth from all walks of life to express their thoughts, ideas and feelings on a canvas, while being empowered with best choices, options and opportunities in careers. The programme is also endorsed by the Ministry of Education.
EDEX – For Youth
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DEX, with its multi-faceted value additions, empower youth to be globally competitive, by giving them the opportunity to attain the best options for higher education, vocational training and skills development whilst making them environmentally responsible individuals. The EDEX programmes are endorsed by the Presidential Secretariat and Ministries of Education, Higher Education, Youth Affairs and Skills Development, Environment and Renewable Energy, Labour and Labour Relations.
It is a unique social enterprise run by a passionate group of volunteers who contribute with all their might, by being motivated and passionate to make a difference. The strategic partners of EDEX are: the Ceylon Chamber of Commerce (CCC), The Information and Communication Technology Agency of Sri Lanka (ICTA), and the Sri Lanka Association of Software and Service Companies (SLASSCOM).
EDEX Think Green This initiative includes skills development, job and business opportunities through emerging aspects of green education, green skills and green enterprise. The EDEX Green Zone was initiated as an integral part of the annual EDEX Expo in 2009 to reveal these emerging trends and by empowering the youth to take timely advantage of the ‘green’ economy.
We believe that through simple, responsible behaviour shifts, together we can protect human health through environmental stewardship. Kamal Abeysinghe Chairman EDEX
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AUTHOR : KAMAL ABEYSINGHE - CHAIRMAN
R
ealising the need for sustainable living, preserving natural resources and protecting the environment for many more generations, EDEX launched its green initiative themed EDEX ‘Think Green’, striving to educate, activate and engage youth towards sustainable living.
‘Around the Pearl’ - 10 day bicycle tour
Janashakthi Inspires Community Confidence with our Commitment to Social Responsibility
A
s part of our commitment towards the local community, Janashakthi has sponsored many initiatives, from special kidney screening programmes to the sponsorship of young athletes from rural areas. The company has also undertaken Dengue prevention programmes and special eye care programmes. Janashakthi has made a firm commitment towards uplifting the rural youth, through its athletic sponsorship programme, which is now in its 6th consecutive year. At present, 12 School athletes receive sponsorships under the programme, as well as 6 individuals who are in the employee category. In addition, there are two Tennis Players who are a part of the sponsorship programme as well. The programme includes monthly compensation as well as an incentive scheme to reward outstanding performance. Financial support is also provided to athletes who represent the country in an international level.
Beyond financial sponsorship, Janashakthi Insurance goes the extra mile for its young athletes by providing technical guidance and motivational programmes. The performance levels of these athletes are continually monitored. In addition, Janashakthi Insurance offers these athletes the opportunity to become full time employees, while continuing to sponsor their sporting careers.
R.K.A. Kelum Weerasinghe Manager Brand Activations
AUTHOR : SHEHARA DE SILVA | GENERAL MANAGER - SALES & MARKETING
Inspires Community Confidence
Our goal has always been to inspire confidence in the community. This is just one of our many active projects. We are proud to work together with the Anuradhapura Teaching Hospital in order to contribute to the good health of the community. Moving beyond just providing a security blanket in times of distress, we hope this programme will also help to prolong the lives of the residents of Anuradhapura.
The individuals have proved the programme to be a clear success as many of the young athletes have excelled at both local and international level championships. Last year, one of our athletes, Shivanthi Rathnayake was re-appointed Captain of the Junior Women’s Athletics team, representing Sri Lanka at the SAARC Junior Athletics Championships in Randhi, India. The team put on their best performance yet, with Shivanthi winning the Gold in the 400 metre event, while her participation in the 4 x 400 relay event propelled the team The Sustainability Edge |39
to win a 2nd Gold medal. Rumeshika Ratnayake won two bronze medals in the 100m and 200m races and gold in the 100m relay, Samith Lakmal won bronze medals in the 100m and 200m events and a gold in the 100m relay, and Malin Udaya Kumara won a silver in the hurdles event and a bronze in Long Jump. Harshini Wathsala won gold in the 400m race, while Akila Ravishanka won a silver medal at the 110m
hurdles event at the 2013 Asian Junior Championships held in China. Rumeshika Ratnayake and Medhani Wickramasinghe brought home several medals after participating in the First Asian School’s Athletics Championships in Malaysia last year while Rumeshika and Samith represented Sri Lanka at the 2013 World Youth Championships, held in Ukraine.
Most recently, Janashakthi Insurance stepped forward to sponsor ‘Around the Pearl’, an initiative which consisted of a 10 day bicycle tour to raise funds for those diagnosed with Cerebral Palsy (CP). CP is a neurological condition affecting the movement and coordination of children. It is caused by abnormal development or damage to the motor control centers of the brain. The event was held from the 10th to the 20th of April 2014. Twelve well known business professionals took part in the event led by Ajith Fernando, CEO / MD Cal Group set out from Colombo and traversed the country on a 1400km bicycle ride along Sri Lanka’s coast. The ride ended at Colombo’s iconic Independence Square. Supporters were able to follow the cyclists on the event website - www.aroundthepearl.lk and pledge donations. The project was initiated to raise awareness for Cerebral Palsy and with the goal of collecting funds for 1000 wheelchairs for children with CP.
AUTHOR : SHEHARA DE SILVA | GENERAL MANAGER - SALES & MARKETING
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round the Pearl was established by the ‘Wheels for Wheels’ orgnisation. The programme is being conducted in partnership with the Cerebral Palsy Lanka Foundation (CPLF) and WrooM - a project which focuses on promoting cycling in Sri Lanka, as an alternative transport mode and also promotes the awareness of road safety rules.
Following reports of an estimated 400,000 people affected by Chronic Kidney Disease in the North Central province alone, Janashakthi collaborated with the Anuradhapura Teaching Hospital to especially provide special medical clinics in order to identify those at risk or already suffering from chronic kidney disease, so that they could receive the much-needed treatment required.
This is not the first time Janashakthi has stepped forward in response to an urgent community need. We are also a part of the fight against chronic kidney disease which has affected many individuals in Sri Lanka.
Residents of Senapura, Kahatagasgigiliya, Mihintale, Talawa, Ipalogama, Rambagalawindunu Wewa and Rambewa benefited from the medical clinics, which included free screening programmes by consultant nephrologists Dr. Rajiva Dassanayake and Dr. Nalaka Herath. More than 3000 residents benefited from the 6 clinics, with as many as 10-20% of the individuals being diagnosed with chronic kidney disease.
First detected in the early 1990s, this deadly disease has spread from the Anuradhapura and Polonnaruwa district in the North Central Province to the Eastern, North Western, Uva and Central Province. The affected area now covers 17,000 kilometers, a vast tract of land occupied by over 2 million people. 40 | The Sustainability Edge
Majority of those suffering from cerebral palsy are in dire need of funds in Sri Lanka and in some cases, parents are even unable to acquire a wheelchair, which can greatly improve the mobility of a child diagnosed with cerebral palsy. Many of the children are ostracised due to the stigma associated with having a differently-abled child, with parents keeping their children out of the public eye.
Shehara De Silva General Manager Sales & Marketing Janashakthi Insurance PLC
PLANT A NOTION ‘Going Green’ doesn't have to be a daunting task which includes sweeping life changes. Simple adjustments can make a big difference. The contents of this list might not be new, but sometimes it takes a few reminders for things to take root.
LET YOUR FINGERS DO THE WALKING—ONLINE Do you really need a printed phone book? No -- Call to stop phone book delivery and use an online directory instead. It is estimate that telephone books make up almost ten percent of waste at dump sites. And if you still receive the book, don't forget to recycle your old volumes.
BUY LOCAL Consider the amount of pollution created to get your food from the farm to your table. Whenever possible, buy from local farmers or farmers' markets, supporting your local economy and reducing the amount of greenhouse gas created when products are flown or trucked in.
CHOOSE MATCHES OVER LIGHTERS Most lighters are made out of plastic and filled with butane fuel, both petroleum by-products. Since most lighters are considered ‘disposable’, over 50 million end up in landfills each year in Sri Lanka. When choosing matches, pick cardboard over wood. Wood matches come from trees, whereas most cardboard matches are made from recycled paper.
GO TO A CAR WASH Professional car washes are often more efficient with water consumption. If everyone in Sri Lanka who washes their car by themselves took just one visit to the car wash, we could save nearly half a billion gallons of water.
42 | The Sustainability Edge
USE BOTH SIDES OF PAPER Sri Lankan businesses throw away 1.5 million tons of paper each year. For a quick and easy way to halve this usage, set your printer's default option to print double-sided (duplex printing). When you're finished using with your documents, don't forget to take them to the recycling bin.
GO VEGETARIAN ONCE A WEEK One less meat-based meal a week helps the planet and your diet. For example: It requires 2,500 gallons of water to produce one pound of beef. You will also save some trees as well. For each hamburger that originated from animals raised on rainforest land, approximately 55 square feet of forest have been destroyed.
TURN OFF THE LIGHTS Always turn off incandescent bulbs when you leave a room. Fluorescent bulbs are more affected by the number of times it is switched on and off, so turn them off when you leave a room for 15 minutes or longer. You'll save energy on the bulb itself, but also on cooling costs, as lights contribute heat to a room.
RECYCLE OLD MOBILE PHONES The average mobile phone lasts around 18 months, which means 8.7 million phones will be retired each year in Sri Lanka. If they go into landfills, the phones and their batteries release toxic substances into our environment. There are plenty of reputable programs where you can recycle your phone, many which benefit noble causes.
RECYCLE GLASS Recycled glass reduces related air pollution by 20 percent and associated water pollution by 50 percent. If it isn't recycled it can take a million years to decompose.
ENVIRONMENTAL SUSTAINABILITY
ELECTRONIC WASTE Metropolitan’s solution for workplace electronic waste Over the last few decades, Sri Lanka’s offices have seen an influx of machinery that have replaced large quantities of equipment that are fast becoming obsolete in the midst of speedy technological advancements. While the life span of equipment has become shorter, the products piling up in store rooms and office dumps have increased.
AUTHOR : TASLIM RAHAMAN - MANAGING DIRECTOR - CONSUMER
As a pioneer in Sri Lanka’s workplace products and services supply and as a company known for introducing some of the advanced technologies in the industry to local workplaces, Metropolitan embarked on a corporate social responsibility project to manage the electronic waste collecting in Sri Lanka’s offices. Since then, Metropolitan has received two awards for the project which has created awareness and facilitated the recycling of electronic waste in Sri Lanka. These challenges have been overcome with the assistance of the Central Environmental Authority (CEA) through awareness creation on the need for disposing electronic waste in a safe manner and through awareness on the government‘s national e-waste management mandate. Metropolitan is also proud to be Sri Lanka’s first corporate to initiate and hold Sri Lanka’s first public electronic waste collection day in collaboration with the CEA in April 2011. The initiative attracted the public and other companies from all spheres and sectors, who brought in
44 | The Sustainability Edge
their electronic waste for managed disposal and recycling. The public can hand over their e-waste at select strategic locations of our Metropolitan branches. Companies can also email us with information regarding their e-waste, and we will make suitable arrangements for collection.
This project was initiated to provide a solution to the electronic waste problem and to create public awareness of the dangers caused by the unmanaged disposal of electronic waste. Thereby creating greener environment, that are safer and healthier, while establishing productive workplaces with efficient resource usage.
We had two main challenges when implementing this project. One was the lack of awareness on the dangers of electronic waste management amongst the public. The other was the state and private sector procedures in releasing redundant equipment for proper disposal and subsequent recycling. Taslim Rahaman
Chamintha Thilakarathna Group Corporate Communications and CSR Manager
Managing Director – Consumer Metropolitan Office (Pvt) Ltd.
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ELECTRONIC WASTE Singer brings Environmentally Responsible Products to the Masses REDUCING THE CARBON FOOT PRINT
AUTHOR : CHITRAL PERERA - DIRECTOR - HUMAN RESOURCES
A new standard was initiated in the industry with the goal of conserving the environment, as Singer introduced its range of R600 gas refrigerators manufactured through the Regnis Lanka factory. This standard was initiated in an effort to reduce the adverse effects of global warming caused by the R134 gas that is currently used. Singer is one of the first companies in South
Asia to initiate this change that was set for the year 2040. This option provides the consumer with greener refrigeration and a cost effective alternative that can reduce their electricity bill by a staggering 50%. In addition to this, the refrigerators come fully equipped with the nutri-seal feature that ensures the freshness of food and seals out unpleasant odours naturally.
Singer Sri Lanka implements its Strategic CSR activities by focusing on sustainability across the spheres of the environment and the corporate sectors. The company has placed these strategies at the very core of its business activities. Accordingly, Singer has engaged in several meaningful ventures aimed at adding value not only to the industry but also to the community at large.
SPREADING THE GREEN MESSAGE FAR AND WIDE
COMMUNICATION IS KEY
As an organisation, Singer believes that our awareness pertaining to the environment must not only be a mere part of the equation but it must reach the very core of our being. During the years Singer has also focused on maintaining a greener environment at their factories. The factories only consume corrugated cardboard and have also invested in research for the utilization of biodegradable material in all its packaging. The management is responsible for maintaining high standards of environmental conservation as well as ensuring that the organisation meets the standards of the Central Environmental Authority. The factories also consist of a dedicated saw dust collection system in order to recycle debris from the factory in an environmentally friendly manner.
A large scale communication project was undertaken in 2013, with the aim of educating the population of Sri Lanka about the importance of conserving our natural treasures. In line with this thought, billboards would be displayed in significant sights across the country, which are fast approaching ruin, due to human negligence and indifference. Through this venture the company hopes to instill a sense of responsibility to the people who visit, utilise and enjoy what Sri Lanka has to offer. The first of these billboards was displayed at the Bambarakanda waterfalls in the Badulla District. The astounding 863 feet natural waterfall attracts thousands of visitors, both local as well as foreign each day and is subject to pollution and destruction daily. Similar educational campaigns are being carried out island-wide spanning across 15 districts and encompassing 50 national heritage sites. The project will extended its message to thousands of Sri Lankans and foreigners alike and is carried out in cohesion with the National CSR Project Task Force.
Singer makes every effort to ensure that the environment is protected and conserved for future generations. 46 | The Sustainability Edge
REDUCE-REUSE-RECYCLE
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CLEANER RIVERS... CLEANER WATER
As a proud representative of the Central Environmental Authority of Sri Lanka, Singer has undertaken a project that is aimed at recycling the electronic waste (e-waste) in Sri Lanka. Singer Sri Lanka has volunteered all its point of sale locations, as collection centers for this venture and as of December 2013, over 300 Tons of electronic waste have been collected. The project engages all the employees of the Singer family and ensures that everyone contributes to the collection. On many occasions showroom staff have travelled door-to-door educating the locals on the benefits of recycling e-waste and encouraging them to hand over their used products. The Central Environmental Authority awarded Singer for its outstanding contribution towards the project, as a forward thinking endeavor that allowed Sri Lanka to reach international standards in the conservation and protection of the environment.
We believe that by recycling electronic waste the world could reduce its expenditure on electronics and manufacturing by half, thus reducing the current pollution levels by half as well
inger displayed its dedication towards the wellbeing of the society by investing in the purification of the Nachchimale River in Ingiriya. The employees of Singer volunteered to dedicate their time and effort into providing a cleaner environment for the river and also assisted in implementing a waste management system to ensure the sustainability of the purification project. This approach ensured that the hard work vested in the project maintains itself throughout the years as opposed to only showing short term results.
Despite the fact that 71% of our globe is covered in water, the lack of clean water is one of the world’s biggest problems.
HEALTH IS WEALTH city as well. In order to achieve this goal the company allocated Rs. 100 from the sale of every Singer Water Filter or Purifier and accumulated the Rs. 4 million in funding required to provide the dialysis machines. The organisation intends to continue this CSR venture in the coming months based on the needs of the people in each region. Singer has specifically dedicated its resources toward ensuring that it provides sustainable solutions towards combating pertinent issues relating to the environment and healthcare. It has long been the belief of the organisation that providing short term solutions to problems that have long term effects are of minimal impact and a long term
solution is always key. This formula will continue to ensure that Singer creates a strong and lasting impact on the lives of people across the country.
Chitral Perera Director Human Resources
The Sustainability Edge |47
AUTHOR : CHITRAL PERERA - DIRECTOR - HUMAN RESOURCES
S
inger also diversifies its ventures into the areas of healthcare. A project was implemented to donate two dialysis machines to the Polonnaruwa Base Hospital. The project was initiated due to the awareness efforts made by the Health Ministry of Sri Lanka on the growing rate of Kidney related diseases in Sri Lanka. Independent research depicts that the majority of patients living outside of the western province in Sri Lanka travel to the National Hospital in Colombo in order to receive the required treatment, which is an immense inconvenience to the patients. Singer understood the importance of providing equal access to healthcare for individuals who reside outside the
We did not inherit the earth for our
ancestors, we borrow it from our
children. Native American Proverb
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LESS CHOICES BEST PLACE EXPERIENCE Why did my mindset and behaviour change to enthusiastically focus on Environmental Sustainability?
D
oing the right thing has always been a way of life at MAS Holdings, with focused attention on Corporate Social Responsibility. A growing concern of the impact on the environment and a deeper understanding of evolving stakeholder expectations motivated MAS in 2010, to adopt a more structured approach to driving environmental sustainability. New and visionary thinking are the drivers of MAS’ progressive philosophy, and our leaders from Chairman Deshamanya Mahesh Amalean onwards embody this.
AUTHOR : SHAMAL BOYAGODA - OPERATIONS MANAGER
The company has invested on lean manufacturing concepts to eliminate waste out of the manufacturing process and has been working aggressively to minimise the environmental impact of operations and products. We are also working towards wider stakeholder engagement and disclosure. Annually, on average 30,000 employees participate in awareness and training programme on environmental sustainability. Significant investments are also made on technical training. But this year MAS also did something rather unconventional to progress sustainable leadership.
MAS Learning and Development Strategy
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believe MAS’ learning and development strategy extends beyond conventional techniques of classroom learning or on-the-job training, with experiential learning forming an important aspect of tapping into the latent potential of employees. MAS is also transforming into a learning organization. Part of being a leader or Manager at MAS is about teaching others. Dian Gomes, Group Director MAS Holdings, was instrumental in facilitating a visit by Sir Robert Swan to Sri Lanka in November 2012, where a lecture was conducted for MAS manage-
50 | The Sustainability Edge
ment on Sustainable Leadership. The idea of nominating a MAS leader for the Antarctic Sustainability Leadership Programme came from there. For us it is not a one-off investment to brand ourselves in the space of environmental sustainability. It’s all about creating a culture of changed behaviour to be sustainable. As the first person to walk to the South and North Poles, Sir Robert Swan went through a mind shift when he went to the Antarctic. It was first about achievement but in the end, it was all about a responsibility to the planet.
Having decided to send an individual to the Antarctic to experience that mind shift, MAS finally chose me from a group-wide open application process. 80 individuals from across 28 countries participated in the 10th Antarctic journey including Nobel peace prize winners, vice chancellors of prestigious universities, corporate heads, environmentalists, social work groups, media
companies and representative from the United Nations. It was a huge programme, rightly so, since the demand from the planet is gigantic. Having left Sri Lanka on 27 February 2013, we reached Buenos Aires and later came to Ushuaia, Argentina, considered the southernmost city in the world.
AMAZING PLACE FOR SURVIVAL SKILLS
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ir Rob Swan has named the Expedition 2041. In 2041 the Protocol on Environmental Protection to the Antarctic Treaty could potentially be modified or amended. It is the aim of Swan and the team to work towards continuing protection of the Antarctic Treaty, so that the last great wilderness on earth is never exploited. Their mission is to inform, engage and inspire the next generation of leaders to take responsibility, be sustainable, and know that now is the time for action in policy development, sustainable business generation and future technologies.
M
y Antarctic experience caused a sea change in my behaviour, and coming back with a deep awareness of what is in store for future generations. At MAS, I can make a change. I have the freedom to use my learning to implement change, not only across systems and processes, but also spread the message to my 60,000 colleagues, their communities and the nation. My commitment is to change the behaviours and mind-set of people, to actively and enthusiastically focus on environment sustainability with urgency by telling the exciting yet tragic story of Antarctica’s plight.
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AUTHOR : SHAMAL BOYAGODA - OPERATIONS MANAGER
I
ntensive training on survival skills, hiking in snow and safety, was enhanced by bonding amongst the group of explorers and of course getting a whole new appreciation for the fauna and flora of the region. The first challenge was to cross the Drake Passage which is the roughest sea in the world, saw us arrive at the Antarctic Peninsula. Travelling to designated points by ship and trekking across the snow, the explorers had many experiences, physical and visual. It brought home sad truths about the situation of our planet and a harsh awakening of the mind.
New and visionary thinking are the drivers of MAS’ progressive philosophy... ...Mahesh Amalean onwards embody this
SUSTAINING BLUE SKIES THE DREAM FOR THE WORLD - BLUE SKIES - FOR OUR CHILDREN AND THEIRS THE HONDA DREAM
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In 1948, the Founder of Honda Motor Company, Soichiro Honda dreamt of providing individuals the freedom that comes with personal mobility. That dream became a reality when Honda coupled an engine with wheels. Hence, the Honda Motor Company was born.
Soichiro Honda’s dream of “Blue Skies for our Children” initiated a journey of intensive technological research and application and constant innovation. Thus, creating an unwavering commitment to make this dream a reality. Honda’a environmental initiatives have reached great heights since its inception in the 1960’s.The topmost priority in the list of sustainability projects was the companies ‘Environmental and Safety Vision’ programme headed by the Company’s President and CEO.
In 1966, Soichiro Honda declared his goal of sustainability, which was to sustain the blue skies we all enjoy for our future generations as well.
Leave Blue Skies for our Children Soichiro Honda Founder - 1966 Honda Motor Company Limited
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THE HONDA ENVIRONMENTAL AND SAFETY VISION
AUTHOR : TARINDRA KALUPERUMA | EXECUTIVE DIRECTOR
n 2010, Honda announced its direction for the decade upto 2020: “good products to customers with speed, affordability, and low CO2 emissions.”
The Honda Environmental and Safety Vision: To realise “the joy and freedom of mobility and a sustainable society where people can enjoy life.”
To realise this vision we will lead the industry in offering outstanding environmental and safety performance and technologies that proudly bare Honda’s identity. Honda puts climate change and energy at the top of the list of global environmental issues that it needs to address. Expanding this approach beyond CO2 emissions to include all types of environmental pollutants, improving monitoring accuracy and realising further reductions, will be our environment management policy for the years ahead.
Takanobu Ito
Chairman, Honda World Environment and Safety Committee
H
onda’s direction towards the vision of ‘Blue Skies for our Children’ is through the Honda Triple ZERO Concept, to address and
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overcome - the triple challenges of Climate Change and Energy issues, Resource problems, and Biodiversity concerns. Honda participates with communities
to clean up beaches, and developed a lightweight, compact Beach Cleaner, that is simply designed, easy to operate and towed along by Honda’s 4-wheeled electric scooter - Monpal.
The Honda Triple ZERO Vision Towards ZERO Impact Operations ZERO CO2 Emissions
ZERO Waste
ZERO Energy Risk
A few examples of the initiatives taken by Honda to implement the Triple Zero concepts:
•HONDA INNOVATION AND PRODUCT DEVELOPMENT: By the end of 2013, we introduced 191 new HEPS-compliant models, which consisted of: 83 automobiles, 66 motorcycles and 42 power products. Outstanding examples being the FCX Clarity fuel cell automobile, ‘Miimo’ the robotic lawn mower, the Honda automobile Plants, the Salad rotary tillers running on household butane gas and the GP propane gas-powered portable electric generator which emits 15% lower CO2 emissions than gasoline powered generators of the same output. Honda constantly carries out research on next generation technologies which can assist to maintain a cleaner world. Honda’s Electric Mobility Synergy and Smart Home System are two such areas that assist in this venture. Reducing fossil fuel usage results in a cleaner environment, therefore Honda has developed highly fuel-efficient engines with low friction. The Honda CTX (Comfort, Technology, and Experience) motorcycle series incorporates fuel technology that uses 40% less fuel than conventional engines. In Brazil, Honda has six models of flex-fuel motorcycles which run on gasoline and environmentally responsible bio-ethanol which heavily reduces the percentage of CO2 emissions and gasoline consumption. We implemented the redesign of our engines focusing on Sound control. The exhaust systems and transmissions of Honda automobiles, motorcycles and power products have greatly reduced their sound levels. ‘Miimo’ the robotic lawn mower functions at a sound level lower to that of tree leaves rustling in the wind. •HONDA ENVIRONMENTAL PERFORMANCE STANDARDS (HEPS): Our product classification and certification system designed to optimize Honda’s product standards to highly efficient and revolutionary products.
•HYDROGEN POWER: Honda views fuel cells as the ultimate clean energy solution. With this in mind, we produced the Honda FCX Clarity fuel cell electric vehicle (FCEV). The power generation of this vehicle can supply an average Japanese household with six days of electricity and the FCEV can function as a mobile power generation source as well. •CHILDREN AND COMMUNITY: Promoting the ‘Blue Skies for our Children’ project and to increase the level of environmental literacy among children, Honda’s ‘Nature Wagon’ programme mainly visits primary schools located near the seaside or mountainous areas.. Honda’s team personally interacts with these children giving them hands-on experience about the environment and how best to care for it. •YORII AUTO PLANT (JAPAN): An outstanding model as a world-leading energy efficiency system and active in biodiversity conservation. The Yorii Auto Plant was the model used by Honda during the construction of the other manufacturing sites spanning 27 countries. 28% of the plant energy needed is generated by solar and gas power, which produces 2.6MW of energy and is the highest producer of solar and gas power of any automobile factory in Japan. Innovation is a continuous process at Honda; therefore Product development, new paint technologies and the custom machinery used, saves up to 30% of energy and emits 40% less CO2. Over 30% of land near the plant is devoted to vegetation and riparian habitat. Rare animals and plant species flourish in this area and we consider it a primary goal to conserve this area of the land. •SAO PAULO AUTO PLANT (BRAZIL): Honda Automovels do Brasil Ltda (HAB), Honda’s automobile production and sales subsidiary located in Brazil is a two time winner of the ‘Gold Seal’ which is awarded for achieving the best results in the ‘Greenhouse Gas (GHG) Protocol Programme’. In order to gain an alternate energy source, a wind farm is being built at the Sao Paulo Auto Plant which will be able to generate 100% of the plant’s annual energy requirement. Honda is the first automaker in Brazil to undertake a wind power project and will fully switch its energy requirements by mid-2014.
Tarindra Kaluperuma Executive Director Stafford Motor Co. (Pvt) Ltd
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AUTHOR : TARINDRA KALUPERUMA | EXECUTIVE DIRECTOR
•HONDA FIRST: The world’s first automaker to comply with the 1970 Clean Air Act - a challenge thought by many to be insurmountable was achieved by the revolutionary Compound Vortex Controlled Combustion (CVCC) automobile engine. We were also the first Japanese automaker to sell recycled parts and to collect and recycle oil filters and bumpers. First Automobile manufacturer to implement a production scale rare earth recycling system. The rare earth elements are extracted from used hybrid vehicles, and the nickel-metal hydride batteries are processed and reused in new batteries. The company was the first automaker to install a solar-powered hydrogen station in Japan (near Tokyo).
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COPYRIGHTS © : THE AA - UK
The Sustainability Edge |55
Our Commitment Known as Sri Lanka’s premier hospitality brand, we at Jetwing have constantly pushed the boundaries of the tourism industry. With over 20 properties spread over the island: a mix of resorts, hotels, and villas, we pride itself on the experience of true, traditional Sri Lankan hospitality complemented by a firm commitment – towards local communities, sustainable practice, and the environment.
AS GREEN AS THEY COME JETWING HOTELS, AN ONGOING COMMITMENT TOWARDS SUSTAINABILITY
T MEDIA RELEASE – JETWING HOTELS
he Jetwing Eternal Earth Programme, known as JEEP, is the umbrella term used for all community and naturebased projects as well as sustainability initiatives undertaken as a responsible tourism initiative by Jetwing. JEEP is split into the following four sections – Community Outreach Initiatives, Sustainability, Eco Projects and Humanitarian Programmes. Through Community Outreach, we focus on the development and mutually beneficial relationships with local individuals, families and communities. The internationally renowned Jetwing Youth Development Project (JYDP) is a shining example, where talented yet uneducated youth are given opportunities to create a career in the hospitality industry. The first ever JYDP was held at Jetwing Vil Uyana, Sigiriya, and was awarded the Pacific Asia Travel Association (PATA) Grand Award under Education and Training for its novel approach to the issue of youth unemployment. Other initiatives in the Community Outreach category include the Lighthouse Community Pool in Galle, 56 | The Sustainability Edge
set up after the tsunami to provide valuable and essential instruction in swimming, and the Tuk Tuk Line! which offers an opportunity for three-wheeler drivers in the vicinity to fulfill a visitor’s transport needs. Sustainability focuses on practices and technology implemented within the hotels themselves, such as dependence on solar panels and biomass boilers for power generation, which provide hot water and steam power for innovative measures such as absorption chillers for air conditioning as in the case of Jetwing Lagoon. In addition, hotels feature 100% LED lighting and recently, Jetwing Yala began to generate its own electricity needs through a solar panel farm. Water recycling and purification is undertaken through treatment plants, and used within the grounds of the properties – all measures strictly according to a Green Directory, prepared by an independent expert. Family owned and in the tourism industry for the past 40 years, we have surpassed expectation at every aspect.
Building on our foundation of passion, as well as the experience of true, traditional Sri Lankan hospitality, constantly pioneering discoveries captures the essence of our brand. Such a strong statement and direction have enabled us to imagine, create and manage marvels and masterpieces, where distinctive design and elegant comfort complement each other and the environment. Considered a priority, sustainable and responsible practice is implemented through the award winning Jetwing Eternal Earth Programme; with energy efficiency, community upliftment, and education of earth saving measures to schoolchildren being a few tenets of the Programme.
Media Relations Jetwing Hotels 31 May 2013 Angie Samuel - Marketing Communications Manager Prasanna Welangoda - Senior Events & Media Executive
POWERED BY LARGEST PRIVATELY OWNED SOLAR PARK Producing 1.5 MWh Per day With zero Greenhouse Emissions Saving more than 250 Tons of CO2 Per Annum is now in operation.
ALPHA SOLAR ENERGY SYSTEMS (PVT) LTD No.121, Castle Street, Colombo 08 | Tel: 011 4938957 | Hot Line: 0770460520 Email: alphasolar@solartherm.lk | Web: www.solartherm.lk
© BP UK
BIOMASS ENERGY A sustainable alternative to offset our dependence on fossil fuels
WHAT MAKES IT AN ALTERNATIVE ENERGY SOURCE? Biomass is carbon base and converting biomass to sustainable energy is a carbon-neutral process. Great care is taken to process and burn the material as cleanly as possible during the production of energy. Further, new organic material can be planted to replace what’s consumed and that new material consumes carbon in the form of carbon dioxide through photosynthesis.
WHAT IS BIOMASS?
B
iomass is any organic material, which is mainly derived from materials such as: trees, wood chips, pulp sludge from wood-processing facilities, agricultural crops, food waste and organic waste.
AUTHOR : PRAVEEN GNANAM - SPECIAL PROJECTS CORDINATOR
The type of biomass we primarily use at Tokyo Power is paddy husk, which is an agricultural waste product that is traditionally burnt or thrown away once separated from rice during milling. We also use Gliricidia, a fast growing tree legume from which fuel wood is obtained. We work in collaboration with farmers to grow Gliricidia and buy it back from them once ready for use. Thus, maintaining a consistent supply of our biological fuel. The materials which were selected on the basis of availability and has the ability to generate 3,000 – 4,500 kilocalories per kilogram when dry, are obtained in Sri Lanka’s dry zone, particularly in the North, Eastern, and North Central provinces. These areas feature an abundance of rice mills and are ideal for growing Gliricidia. 60 | The Sustainability Edge
A peak into the clean burning biomass furnace
The Trincomalee cement factory produces over 2 million tonnes of cement per annum runs purely on clean energy
TOKYO POWER CLEAN AND CONSTANT ENERGY
T
okyo Cement is widely-considered a pioneer in biomass power generation in Sri Lanka as our current 10MW biomass power plant in Trincomalee successfully powers the entirety of our manufacturing facilities. In 2012, we took another step forward in the application of renewable energy solutions to our manufacturing process. Encouraged to expand our efforts through a request by the Ceylon Electricity Board (CEB) we initiated a 5MW biomass-dendro power plant in Mahiyanganaya. The plant is a permanent solution for the low voltage situation that cripples the Mahiyanganaya area by meeting the increasing demand for electricity. The Rs 1.5 billion power plant has been built in consultation with the CEB and the Sri Lanka Sustainable Energy Authority. The plant was commissioned on the 5th of April 2014 and is expected to generate electricity for the next 25 years, in an eco-friendly manner.
Communities in the surrounding areas will benefit through the supply of electricity and also through a new source of income. The power plant requires a daily supply of 200 tonnes of Gliricidia sticks as fuel. We expect to meet this requirement from farmers in the Badulla, Matale, Polonnaruwa, Ampara and Monaragala districts, wihch is supplemented through an out-grower system. Accordingly, we will further supply saplings and educate farming families about commercial cultivation of Gliricidia. We have already planted 1 million Gliricidia trees in 2012. We will be investing Rs 150 million on planting 10 million trees, which will contribute towards greening the environment. Thus, 200 young men and women in the area will gain direct employment at the plant. The new Mahiyanganaya plant generates and electrifies 30,000 rural homes, of which, 20,000 farming families aid in the growing and supplying of the plant’s fuel.
Farmers weigh Gliricidia sticks for collection. They cooperate with Tokyo Power’s out-grower program and can sell their crops directly to the company
SURPASSING STANDARDS No stranger to being ‘the first’, Tokyo Cement set up the country’s first automated cement factory. Coupled with Tokyo Cement’s silent mantra of ‘setting the standard’, surpassing local standardisation to become the first local corporation to achieve ISO 14001 Environment Management Systems certification, and the first cement manufacturer to achieve the ISO 9000 Quality Management Systems certification. Also while, going beyond the UNFCCC’s strict protocols to accomplish 40,000 tons of Certified Emission Reductions per year.
AUTHOR : PRAVEEN GNANAM - SPECIAL PROJECTS CORDINATOR
A Tokyo Power engineer records the data that ensures the biomass plant continues to produce optimum energy output
The Sustainability Edge |61
TOKYO POWER ENVIRONMENTAL IMPACT 15MW Biomass Energy Generation
Tokyo Power currently generates 120GWh of energy per annum through clean, consistent biomass plants in Trincomalee and Mahiyanganaya
EQUIVALENT 82,746 Metric Tons of Carbon Dioxide Equivalent NOT being emmited into the atmosphere. Taking 17,420 passenger vehicles off the road Driving 317,064,218Kms less every year 29,658 Tons of waste NOT being sent to a rubbish dump 35,245,655 litres of Gasoline NOT being consumed 40,314,725 Kgs of coal NOT being burned
AUTHOR : PRAVEEN GNANAM - SPECIAL PROJECTS CORDINATOR
Will require 67,825 acres of forest to sequester the amount of CO2 that this plant is not emitting
PRAVEEN GNANAM SPECIAL PROJECTS CORDINATOR
Control systems engineer monitor the automated power activities in the control room
62 | The Sustainability Edge
RENEWABLE ENERGY
SUSTAINABILITY & SECURITY Renewable Energy for Long Term Sustainability and Security of Energy Supplies
T
Abstract he oil import bill has reached dangerous proportions during the past few months with less than 15% of the total power generated coming from hydro resources. The oil bill now is 33% of the total import bill. The official plans still opt increasingly for fossil fuel based power generation and no attempts are being made to find alternatives to the transport fuels. Even now however, nearly 50% of the total prime energy needs comes from indigenous renewable resources, primarily from
biomass. Sufficient attention however is not being given towards the expansion and profitable utilisation of indigenous sources of energy, thereby enhancing sustainability and energy security of the country. It is imperative to recognise that the national energy security can be enhanced and the negative impacts on the Balance of Payment, Parity Rate and the economy in general could be reduced, only by maximising the contribution made by the indigenous sources of energy. The contribution made to the national grid by the Non Convention-
al Renewable Energy (NCRE) sources, which now stands at 6.8% with 367 MW installed is a beacon of hope. Energy security is achieved by ’non dependence‘ on external sources, and it is well within our means and Sri Lanka’s energy sources. There is also an advantage in using indigenous sources as it enables the achieving of a low carbon energy portfolio and the process of harnessing the indigenous energy will have multiple spin off benefits for the other sectors of the economy as well.
Preamble
T
he debate on and the need for sustainability of all human activities have been going on for several decades now. This is driven by the limited availability of the earth’s resources and the inexorable and escalating demand for such resources. This is further compounded by both the increasing population and the growth of consumption due to ever increasing affluence of the world population. Thus the belief that one world is inadequate to meet such increasing demand has led to the need to find innovative means of meeting the aspirations of the world population with the available resources. The World Commission on En-
vironment and Development which was established by UN in 1983 elaborated the concept of Sustainable Development by defining it as ’Development that meets the needs of the present without compromising the ability of future generations to meet their own needs‘. In this scenario, the energy sector is at the centre of focus of many discussions, mainly because of the fact that the traditional forms of energy which are based on fossil fuels are undoubtedly a limited resource. In addition, the world has realised the many negative impacts caused by the excessive use of fossil fuels, particularly the global
warming and climate change. The developing countries in particular, aspiring to raise the standard of living of their people, to the levels prevailing in the developed world, which were achieved years ago by utilising cheap fossil fuels, are also faced with the issues of affordability and security of future supplies, when they depend on this diminishing resource. Thus, the concept of sustainable development hinges on the three pillars of triple bottom line.
AUTHOR : PARAKRAMA JAYASINGHE - ENGINEER
References •
Abeygunaarda, Witharana, Joseph, Meeting the electricity demand in Sri Lanka by 2020 - A Way Forward
•
Ceylon Electricity Board Statistical Digest, 2010, 2011
•
Ceylon Electricity Board, Long Term Generation Plan 2011 - 2025
•
Central Bank of Sri Lanka Annual Report 2011
•
National Renewable Energy Laboratory (NREL) USA – Sri Lanka Renewable Energy Assessment Report 2006
• - -
Sustainable Energy Authority - Corporate Plan 2008-2012 Annual Report 2011 Sri Lanka Energy Balance 2010
•
Wickremaratna MTAP and Jayathilake EMTG, Forecasting Load Curve Shape for Predicting the Possible Capacity of Pumped Storage Power Plant, SLEMA Journal Vol 2 No 2 September 2011
•
World Bank pink pages- http://www.worldbank.org/html/peccp/pink.html
64 | The Sustainability Edge
Parakrama Jayasinghe Engineer
Hony. President - Bio Energy Association of Sri Lanka, Member of Board of Directors, National Engineering Research and Development Centre, Former Director Engineering – Haycarb PLC (Retired)
THE WAY AHEAD FOR SRI LANKA Given the fact that Sri Lanka has no proven fossil fuel resources so far, the priority should be given to maximising the development of its indigenous sources of energy to achieve the desired goals of Long Term Sustainability and Security of Energy Supplies.
The environmental impact
U
N report on climate change published by the Inter-governmental Panel on Climate Change (IPCC), recently has given a dire warning of the current status of the global warming scenario and suggests that the world must rapidly move away from carbon-intensive fuels. There must be a “massive shift” to renewable energy. Sri Lanka too has to recognise its responsibility in this regard, even though our contribution to the problem is negligible. We cannot expect the freedom to add to the problem at will. An issue that has been ignored in general is the sources of pollution from coal power
generation other than carbondioxide. The discussion on environmental impacts of the Norochcholai coal plant has been mainly on the issue of emission of oxides of sulfur and particulates. However, the danger of other emissions, control of which have not been addressed are the heavy metals and radioactive components of the ash. There is no data on the extent of the emissions of these pollutants which have been freely emitted to the Sri Lankan environment since 2011. However it is interesting to note the recently enacted standards on these pollutants in the USA compared with the current levels from typical coal power plants as shown.
Metal Emitted
Emission Standard g/GWh
Emission Rate g/GWh
Lead
9.1
220
Mercury
1.4
117
Chromium
3.2
114
Nickel
1.8
110
Arsenic
1.4
76
Cobalt
0.9
29
Cadmium
0.2
05
Table 1 – Standards and Actual Measurements of Heavy Metals – Coal Power Plants in USA (Source – USEPA & IEA)
Primacy for Energy Security
T
he National Energy Policy adopted by the parliament as far back as 2006 highlights the importance of both future energy security and the promotion of indigenous resources. However these policies are largely ignored by the state institutions involved in the energy sector. The government has set a target of achiev-
ing by 2020, 20% of the electricity generated to be from Non Conventional Renewable Energy Sources. The reality of climate change decrees that many more challenging targets will need to be set out in the years to come. Most surprisingly in total variance with the stated policy of the government and the National Energy Policy, the state owned utility
has no targets or action plans at all in the long term generation plan for the development of renewable sources of energy. The National Energy Policy document also calls for development of bio fuels as an alternative to transport sector and fuel diversification by utilising off peak electricity for rail and road transport. No progress had been made to date.
S
ri Lanka is now faced with grave issues of both energy security and affordability in the coming years which has a direct impact on the sustainability.
Sri Lanka as recently as 1995 spent only about 9.5% of the import bill of the country for petroleum imports. (CBSL 2004). According to Central Bank sources, the oil import bill jumped from US$ 1.8 Billion in the year 2011 to US$ 4.8 Billion, in the year 2012 and was responsible for eroding the favorable
external resources which had reached over US$ 8.0 billion for the first time in history. This increased drain of foreign exchange would no doubt have contributed to the pressures which resulted in the drastic devaluation of the rupee recently. In 2012, over 30% of the import bill was due to oil and coal imports amounting to over US$ 6 Billion, far exceeding the total export income from the three traditional exports viz., tea, rubber and coconut. (CBSL 2011). Sri Lanka continues to subsidise the price of certain fossil fuels even now, and the large
subsidy provided to the Ceylon Electricity Board (CEB) and the private power producers, creates an impression of artificially low cost of power generation, well below the real costs. This skewed price is used to show that the cost of generation using indigenous resources is more expensive. Against a declared average cost of generation of about Rs 22.70 per kWh, the real cost of generation using some oil based power plants is in excess of Rs 50.00 per kWh. This will hardly be a sustainable situation under any circumstances.
The Sustainability Edge |65
AUTHOR : PARAKRAMA JAYASINGHE - ENGINEER
The Long Term Affordability of Fossil Fuels
Means of ensuring sustainability and security of energy supplies
S
ri Lanka can be proud that even now nearly 50% of its total prime energy needs comes from indigenous renewable resources, primarily biomass. (SEA 2012). While 72% of the thermal energy needs of the industry is derived from biomass, nearly 200,000 tons of oil is still used to generate steam or hot air, easily obtained from biomass using commonly available equipment and technologies.
Not sufficient attention is being given by the policy makers in charge of the energy sector to work out strategies to utilise indigenous sources of energy properly and profitably, thereby enhancing the country’s energy security. The energy sector contains sub sectors of electricity, transport, industry and commercial and domestic thermal energy needs. Needless to say, a properly formulated energy policy will have a substantially positive impact on the balance of payment which is currently under severe pressure.
Avoid ill conceived policies
T
he future plans set out to meet the energy needs are moving in the same ill conceived direction. Plans are afoot to install more and more coal power plants and now there are proposals to import liquefied natural gas (LNG). The decades long support for coal was based on the assumption that coal is cheap and is not linked to and is independent of the price of petroleum. This assumption was shattered even before the first coal power plant was commissioned with coal being imported at more than US$ 147 (Rs 16,222) (CEB 2011) per ton, whereas its price was only US$ 20 per ton at the planning stage of the coal power plant. In spite of this, the long term generation plan of the CEB is promoting even more plants, with as much as 88% contribution expected by coal by the year 2025 (CEB 2013). Although it is considered as the cheapest source of power, the comparison of specific
fuel consumption and the calorific value of coal with those of biomass will show that given a fair comparison not skewed by subsidies, tax and duty free benefits at point of import, for coal, biomass power will prove to be the cheaper option (Abeygunewardena 2006). Furthermore, oil and coal are imported fuels and will have to be paid for in foreign exchange. The Sri Lanka rupee has depreciated at an average of 2.8% annually over the past 30 years despite some short term improvements. Thus the picture would be even bleaker in rupee terms as evidenced by the price trends of oil and coal shown below (World Bank 2012). It would indeed be fool hardy to assume that LNG option would not have the same effect, although LNG is a much better option than coal, at least from the environmental point of view. Even now the price of LNG on equivalent energy content is of the same order as
that of oil. A GJ of LNG in the current spot market costs US$ 16 and the energy equivalent of a GJ diesel oil will cost US$ 21 (World Bank 2012). The cost of extracting Shale Gas in North America which is viewed as the panacea for all supply problems will be significantly more. If the much talked about gas resources from the Mannar becomes commercialy viable, then Sri Lanka will be able to take a very singificant step towards achieving energy security and sustainbaility of supplies, even at a price. An interesting comparson has been made of the price movement of power generated using coal Vs the ingegenous resources, using the feed in tariff figues published by the Public Utilities Commission of Sri Lanka (PUCSL) in 2012. It is clear that based on the preducted cost escalaltion of coal the renwables will become the more economical option in a short time, contrary to the myth currently propogated.
AUTHOR : PARAKRAMA JAYASINGHE - ENGINEER
Coal and Crude Oil Price Trends 1995 - 2013
Fig 1 - Price Trends of Fossil Fuels
66 | The Sustainability Edge
Coal & NCRE Electricity Cost Trends
T
hus, the future energy security of all sectors of energy consumers can only be achieved by the maximisation of the use of indigenous sources.
Sri Lanka is indeed fortunate in that all our indigenous sources of energy are also renewable and environmentally friendly. Thus, we will be insulated from any external pressures on their usage and moreover the very process of development of these energy sources and other related activities will create a multitude of other economic activi-
ties. These will be in the areas of food production, poverty alleviation, rural economic development, environmental enhancement, employment generation, gender equality, reversal of urban drift, etc. These will contribute to achieving the true sustainability as already explained.
S
ri Lanka is primarily faced with the problem of meeting the increasing peak hour demand only, as the installed capacity now and in many years to come will be more than adequate to meet the day time demand. Thus, if some means are found to lower the demand during peak hours from 6.30 PM to 9.30 PM, then there will be no need for any more power plants for many years.
There are two ways that this can be achieved without depriving the consumers of the lifestyle that they aspire to who have improving affluence and greater access to the national grid. • Energy Efficiency in utilisation and use of more efficient equipment. • Self generation by consumers; thus, reducing the demand on the national grid.
The first of these strategies is being addressed by the Sustainable Energy Authority and is reported to have achieved a commendable degree of success. As much as 448 GWh of energy has been saved in 2011 by these measures. The peak demand has been reduced by about 300 MW mainly due to the introduction of CFL bulbs. (SEA 2011). A new opportunity is now available to utilise LED lights which are even more energy efficient and long lasting.
Trimming the peak demand
O
n the other hand, if measures are taken to encourage the consumers to generate their own power, at least during the peak hours, on a formalised and sustainable basis, the peak demand could be reduced or at least the rate of its increase could be managed to obviate the need for any more coal power plants.
In this regard, it is imperative that the self generation is done using indigenous energy resources and through this the country at large will be benefitted together with the CEB. Sri Lanka is fortunate to have such resources which are both indigenous and renewable. It is also important to note that the
main contributor to the peak demand is the domestic users. Therefore, they are the best placed to make the proposed change. Thus, the available hydro and dendro power can be used to serve the reduced peak demand without any further coal power plants as proposed in the long term generation plan of the CEB.
The Sustainability Edge |67
AUTHOR : PARAKRAMA JAYASINGHE - ENGINEER
The problem of peak power demand
Transport Fuels
T
he transport sector at present is entirely dependent on oil, consuming 2,336,000 tons of oil which is 51% of total oil imports (SEA 2010). Since the use of food grains for generation of bio-fuels as an alternative is frowned upon and is not sustainable, the adoption of electric cars may be a more appropriate solution. This is even more advantageous if incentives are introduced to charge the vehicles using renewable resources during off peak hours. It is encouraging to note the plug-in electric cars are now being marketed in Sri Lanka too.
Energy Security and Food Security
AUTHOR : PARAKRAMA JAYASINGHE - ENGINEER
A
nother important consideration is the issue of food security. Sri Lanka has been successful in recent years in being self sufficient in rice production. However, this has been achieved at the cost of a huge subsidy costing Rs 50 Billion annually, given to the farmers to use Urea, a fossil fuel based inorganic fertiliser. The enhanced use of nitrogen fixing and totally renewable, Short Rotation Coppicing (SRC) species of biomass such as Gliricidia for energy, will have the important benefit of generating very large quantities of foliage rich in nitrogen capable of enriching the soil due to their nitrogen fixing ability. These can serve the dual purpose of feeding the livestock as well as providing a nitrogen rich fertiliser to reduce our dependence on imported inorganic fertiliser. Thus, any efforts to maximise the use of indigenous sources, particularly biomass will have the dual effects of ensuring not only energy security, but food security as well.
68 | The Sustainability Edge
Scope for Renewable Energy in Sri Lanka: Potentials and Present Use
T
he potentials for the development of major renewable energy sources and the recent 2011 consumption in Sri Lanka are given in the following table (for comparison purposes all values are converted into GWh/a of electrical energy). The national total renewable energy potential is more than 20 times the present consumption. Such an opportunity is inconceivable for most countries.
The solar power potential is practically infinite and should be viewed as the major source of energy for Sri Lanka in the coming decades. (SEA 2008). In the meanwhile, the biomass resource provides a valuable interim solution, without the problems of intermittency of supply and ability to dispatch at will. The Biomass resource also has the advantage of being usable in all forms of energy demand in addition to electricity generation.
Source
Present Consumption GWh/a
Reference
National Potential GWh/a
Reference
Biomass
13,000
SEA(1)
70,000
UNIDO(5)
Wind
66
CEB(2)
52,560
USAID(6)
Solar
5,400
Solar Industry Association(3)
584,000
USAID: Roof tops of all buildings (7)
Hydro
5,000
CEB(4)
6,000
ESMP(8)
Total
23,466
712,560
Decisions with participation of all stakeholders
A
s late Vidya Jothi Dr Ray Wijewardene always said, energy security and sustainability is achieved by ’non dependence’ (not necessarily total independence) on external sources. We are indeed fortunate that we have the potential to achieve a low carbon energy portfolio as all our indigenous sources are renewable and the very process of developing our own sources of energy will have multiple spin off benefits in other sectors of the economy and ensure sustainability and security of energy..
SUSTAINABLE LIGHTING Lighting Solutions for a Sustainable Future
In line with reducing energy consumption and waste, we believe that Light Emitting Diode (LED) based solutions are the way forward. The national interest of energy efficiency can be significantly tapped by adapting LED solutions, as it not only utilises very low levels of electricity but is mercury-free, highly durable and produces a minimum percentage of waste. Recent technical advances have created LED lighting that is far more superior than traditional lighting methods such as: fluorescent and halogen lighting, without compromising on the performance. While regular incandescent or low energy light bulbs potentially only emit 60-70% of light from a typical fitting. Alternatively, a LED can emit as much as 95% of light, which results in a brighter effect. LEDs offer a more natural source of lighting than tradi-
Carpark - BEFORE LED solution
tional lighting sources, which have an artificial feel. Therefore, LEDs provide a warmer and more pleasant environment, thus creating an enhanced experience to the user. Additionally, LEDs do not contain any environmentally harmful substances and also consist of an incredibly long life expectancy, which greatly minimises the impact on the environment. Majestic Electric has excelled in the fields of lighting and electrical engineering, with expertise spanning over 70 years. The disciplines involved in the design and manufacturing of the LED luminaire techniques include: optics, thermal management, power and control. Thus, LEDs maximise the quality, distribution and consistency of light output with a very minimalistic glare, whilst minimising energy consumption and reducing the level of carbon-emissions. We are in partnership with an American LED company to utilise their state of the art technology, to produce locally manufactured products, which provide greater efficiency and technological superiority. By the aid of this technology, we have managed to improve the efficiency of locally manufactured LED products by 84%, which adhere to local conditions and international standards. The adjacent table clearly depicts the efficiency level of LED bulbs when compared with other traditional lighting sources in terms of power consumption. The LED bulb
Carpark - AFTER LED solution
consumes 1/6 of the power in comparison to the traditional General Lighting Service (GLS) bulb. Furthermore, LEDs are 25 times more durable than a traditional GLS bulb. Therefore, by taking a long term holistic view, the investment on LED lighting would be clearly justified. Individuals in Sri Lanka and the world over are recognising the true potential of LED technology as a means of saving energy and improving environmental sustainability. Hence, we strongly believe that LED solutions provide a leap forward to achieve a sustainable future.
Type
GLS
CFL
LED
Life Time / hours
1,000
8,000
25,000
Lumen / lumen
850
850
850
Watt / W
60
15
9
Daily Use / hours
4
4
4
KWH / month
7.2
1.8
1.08
Jayamal Gunaratne Electrical Engineer & Business Development Manager Majestic Electric Company (Pvt) Ltd.
The Sustainability Edge |69
AUTHOR : JAYAMAL GUNARATNE - ELECTRICAL ENGINEER & BUSINESS DEVELOPMENT MANAGER
T
he society today has become very conscious of the impact they create on the environment. In order to ensure a sustainable future, it is imperative to make decisions on how best we can contribute to reduce the harmful effects on the environment. Energy consumption, CO2 emissions and waste are some of the key factors that lead to environmental depletion. Effectively working towards reducing the impact of these factors can greatly assist in the sustainability of our resources.
LIGHTING AND SAFETY Right to Light and Safety
T
hroughout the years lighting has become an integral part of our lives. Research has proved that lighting affects the quality of life as it has an effect on our productivity, sight and wellbeing. We spend the majority of our lives indoors and at times we spend as much as 8-15 hours under artificial lighting. This certainly rings true in terms of offices, apartments and condominiums, which generally require an artificial source of lighting almost the entire day. Harsh or even inadequate lighting which don’t meet the safety regulation can have a very negative effect on our lives which could even lead to health problems in the long run.
AUTHOR : RAHAMAN ZUBAIR - CHIEF EXECUTIVE OFFICER
ELECTRICITY COST
Today, with the escalating cost of living and the cost of electricity being a primary factor, people are constantly looking for ways in which they can cut down on their costs and reduce their consumption levels, while often compromising on quality to cut costs in the short run. Whilst saving is paramount, long term health and safety should be given equal or higher consideration. The effects on health and wellbeing have far more reaching consequences than saving, and Philips is a brand that truly believes in this aspect, which has lead to consumer centric innovation and carries the highest standards in product safety. 70 | The Sustainability Edge
A
s the saying goes “If wealth is lost nothing is lost, if health is lost something is lost…” Therefore, the public should be well informed of their various options so they may choose in a wise and sustainable manner. To overcome the escalating cost of lighting, most households and even organisations tend to purchase bulbs by only considering the cost factor and selecting the most cost effective bulb in order to lower their costs. But there are certainly more factors that need to be considered if safe usage is to be ensured.
O
BETTER SAFE THAN SORRY ne of the main factors that individuals need to be aware of is the UV radiation emitted by compact fluorescent lamp (CFL) bulbs. If the CFL bulbs phosphor coating is not upto the regulated standard, there is a very high risk of UV exposure to the user. This is further compounded by the fact that the permitted time of exposure to a CFL is only 8 hours at a stretch. Prolonged exposure to these harmful rays can cause many health issues in the long term, such as: migraine, photosensitive eye conditions, skin cancer and many other ailments. Therefore, simply considering only the cost factor of the purchase could prove detrimental to ones wellbeing. There are many importers and manufacturers of CFL who operate in the country but only a few avail themselves to standards that are stipulated locally and internationally. Therefore, it is always advisable to check the safety standards that the product conforms to in addition to the cost savings it would give prior to making a purchase decision. The decision made could result in far reaching consequences than a few rupees saved.
P
PHILIPS LIGHTING hilips Lighting products have won many international awards for design, performance excellence and for the positive impact they strive to achieve for the environment and society. Philips CFL surpasses the industry standard for permitted exposure time (PET) of 8 hours at a stretch to provide 24 hours of permitted exposure time. The ability to give extended PET value arises from the superior technology of Philips. The most recent award Philips received was the ‘Bright Energy Lighting Prize’ also known as the ‘L Prize’ for the 60 Watt replacement bulb category which was released to the market on Earth day in 2012. The award was presented by the US Department of Energy. Thus, Sri Lankans can now enjoy the benefits of energy saving and hazard free lighting technology made available by a world renowned brand that always strives to be a trail blazer, by introducing the latest innovations to the market.
Rahaman Zubair Chief Executive Officer Hayleys Lighting (Pvt) Ltd.
South East Asia’s Only CFL Recycling Plant Orange Electric Works to Prevent Harmful Mercury Poisoning
AUTHOR : KUSHAN KODITUWAKKU - MANAGING DIRECTOR
O
range Electric is the only company in Asia to own and operate a CFL recycling plant capable of extracting harmful mercury. The company which is Sri Lanka’s largest manufacturer and distributor of CFLs. Although the bulb considerably helps in saving energy and minimising costs, proper care needs to be taken in the disposal of used bulbs as they contain mercury which is damaging to health. This move by the company goes beyond mere corporate social responsibility as it stands out as a dire environmental need, which had to be met. The plant located at the factory premises in Pitipana, Homagama has the capacity to dispose of the entire numbers used in Sri Lanka and we are also willing to share the technology with the region. This initiative is 72 | The Sustainability Edge
combined with an island wide campaign by Orange who offers a discount on their CFL bulbs in return for the deposit of used CFL bulbs of any brand, encouraging consumers to return them for safe disposal at their plant. A CFL bulb broken by being thrown in the garbage or any other means, causes mercury to evaporate into the air contaminating the environment or even ground water. Exposure to mercury poisoning can cause serious damage to the human brain, kidneys and lungs. It could also result in several other conditions such as Infantile Acrodynia (pink disease), Hunter-Russell syndrome and Minamata disease. Contamination of ground water not only poisons drinking water, but can also result in polluting seawater, harming fish and other forms of aquatic life; which is
While CFL bulbs are an important component in reducing the use of electricity, its harmful by-product has to be carefully managed. Our company is a pioneer not only in Sri Lanka but in the whole of South East Asia when looking at this aspect.
The plant, operating under the name ‘Asia Recycling (Pvt) Ltd’, has the capacity to recycle up to 30,000,000 bulbs per annum, which is nearly three times the annual usage of CFL bulbs in Sri Lanka. Orange, invested 500,000 US Dollars for the plant, we hope that it would soon be used not only by Sri Lanka but other neighbouring countries, to effectively manage their mercury problem. Mercury, which is stored more like a
fume, inside the bulbs evaporates at a temperature of approximately 25 degrees Celsius, therefore it is important to stabilise the mercury. The plant effectively crushes the bulbs washing out, stabilising and separating the mercury in exact temperatures. The separated mercury is then sent to Germany where a technology has been developed for its proper disposal. The recovered glass is recycled for production and e-waste is collected by Sri Lanka’s Central Environmental Authority. Metal and plastic remains are also recycled for production, making the plant a wholly sustainable unit.
At Orange, we are looking forward to assisting other countries to manage this issue, creating a new opening for Sri Lanka to make headway in the green technology front. Kushan Kodituwakku Managing Director Orel Corporation Ltd.
The Sustainability Edge |73
AUTHOR : KUSHAN KODITUWAKKU - MANAGING DIRECTOR
why a robust mechanism is needed to ensure the safe disposal of used CFL bulbs.
16 businesses converge into 1 super power Switching on an electrifying future
Allied Accessories
Batteries
Switches and Sockets
Appliances
Lighting
Cables
Circuit Protection
Industrial
Data Networks
Building Automation
Generators
CFL Recycling
Machine Vision
Copper Recycling
Earth Compressed Bricks
Mobile Devices
As we began to realize the simplicity and the seamless processing of transactions by consolidating the power of one location by making everything under one roof. Now we have merged our manufacturing companies, distribution and project solution companies together to create Sri Lanka's biggest electric company. Henceforth, it will be known as Orel Corporation; short for Orange Electric Corporation. This transformation also allows us to create a multi-brand strategy for the local and global electrical industry. It enables us to launch and acquire multiple market segmentation strategies. www.orelcorporation.com
GROWING PLANTS WITHOUT SOIL Simplified Hydroponics for Urban Home Gardening
F
ood security is a growing concern worldwide. Urbanisation, land fragmentation, land degradation, effects of climate change and other issues demand food production technologies that are efficient in space, water and plant nutrients. At the same time; be affordable, appropriate and accessible to anyone interested in growing ones own food crops, while also being less of a pollutant.
Simplified hydroponics systems are built with low cost wooden or rigifoam boxes filled with inert growing media which is a mixture of rice hull and sand. The boxes consist of a hole which is placed about 1.5 cm above the bottom of the container wall, which helps to retain water and nutrients at a particular level. This serves as a water and nutrient store for the plants, minimising the wastage and also preventing environmental pollution as there is no water and nutrient run off. Hand watering the hydroponics nutrient once a day is sufficient to maintain the system.
The low input of labor and efficient use of space have enabled this technology to be used in balconies and is an ideal solution for urban gardening and also as a method for growing plants in flats and high rise buildings. The simplicity of this technology makes it amenable to be used by even differently abled as well as mentally challenged individuals. Based on more than 8 years of fundamental and applied research involving academic institutions and different community groups including, differetly abled individuals, we have developed a nationally patented and low cost, simplified hydroponics nutrient solution.
We are in the process of developing a production and marketing strategy for the simplified hydroponics system which includes; the growth medium, the plant insertion boxes made out of various materials and a low cost hydroponics nutrient solution. Simplified hydroponics can be recommended as a low cost technology suitable for anyone interested in growing their own home garden, from a busy office worker to an elderly or differently abled individual to grow vegetables in a cost effective and sustainable manner within a limited space.
Dr. Susil Liyanarachchi
... low cost technology suitable for anyone... to grow vegetables in a cost effective and sustainable manner within a limited space.
Founder & CEO EasyGrow (Guarantee) Ltd.
The Sustainability Edge |75
AUTHOR : DR. SUSIL LIYANARACHCHI - FOUNDER & CEO
‘EasyGrow’ is a social enterprise that promotes space and resource efficient, low cost home gardening systems based on hydroponics principles – growing plants without soil. The hydroponics system that we promote is called ‘simplified hydroponics’.
ECO - FRIENDLY BIRTHDAY PARTIES Geared to Promoting Environmental Literacy
W
ith the increasing rate of technological advancements, the current generation of children have grown up with smart phones glued to their hands from a very young age. While being tech savvy has its many advantages, Children have somewhat disconnected themselves from the environment and the outside world leading to ‘Nature Deficit Disorder’ (NDD), which refers to a hypothesis brought forward by Richard Louv in his 2005 book titled ‘Last Child in the Woods’. Louv very clearly points out that human beings, especially children, are spending less time outdoors resulting in a wide range of behavioral problems. Most developed countries have already taken vital steps to address this issue, and have launched programs to promote environmental literacy while encouraging the youth to engage themselves, with a higher level of outdoor activities.
AUTHOR : KANCHANA WEERAKOON - FOUNDER & PRESIDENT
In line with this growing trend to diminish NDD, Eco Friendly Volunteers (ECO-V), a voluntary environmental organisation have initiated a program known as ‘Nature Kids’ at the Good Market in Diyatha Uyana, Battaramulla. ‘Nature Kids’ is an interactive educational programme to help children understand the importance of engaging with the environment around them devoid of being constricted to only their gadgets.
ECO-V was established in 2001 with the goal of encouraging volunteerism towards Nature conservation through scientific research, training and educational programmes; www.eco-v.org
Kanchana Weerakoon Founder & President Eco Friendly Volunteers
76 | The Sustainability Edge
The program is a free venture conducted every Thursday. Initiated one year ago, this programme has seen great progression, but with no other financial backing we were facing difficulties to sustain the educational stall at the Good Market. In line with our goal of providing this service to as many children and parents as possible, the organisation came up with an innovative idea to generate the funds required to sustain the program. ECO-V established an event management company which organises environmentally friendly birthday parties for children. Most birthday parties consist of environmentally damaging products and unhealthy foods and beverages such as: plastic cups and plates, carbonated beverages, junk food etc.
I’m happy to see my kid’s happiness and feels great knowing that his birthday did not produce much garbage, and was free of fizzy drinks and junk food… all organic and sustainable. Thanuja Edirisooriya Mother of a 7 year old
We have come up with methods to diminish these issues by assisting parents to have healthier and more environmentally friendly parties. We look into each and every aspect of the party, while making sure that the party does not produce any non biodegradable waste. The food items provided are child friendly with healthy ingredients that do not contain any artificial food additives. The ECO-V team conducts several outdoor activities which includes an educational nature walk. We also provide the party guests with an eco friendly gift along with an environmental conservation message. By educating the youth about the environment and how to minimise waste, creates a group of children that can help to create a sustainable future, thus creating environmental champions in our country at an early age.
Letter from a Mother to a Daughter Checking out at the store, the young cashier suggested to the older woman that she should bring her own shopping bags because plastic bags aren't good for the environment. The woman apologised and explained, "We didn't have this green thing back in my earlier days." The cashier responded, "That's our problem today, your generation did not care enough to save our environment for future generations." She was right; our generation didn't have the green thing in its day. Back then, we returned milk bottles, pop bottles and beer bottles to the store. The store sent them back to the plant to be washed, sterilised and refilled, so they could use the same bottles over and over. Yes, they really were recycling. We refilled writing pens with ink instead of buying a new pen; and we replaced the razor blades in a razor instead of throwing away the whole razor just because the blade got dull. But, we didn't have the green thing back in our day. We walked up the stairs, because we didn't have an escalator in every shop and office building. We walked to the grocery store and didn't climb into a 1300-horsepower machine every time we had to go two blocks. But, she was right. We didn't have the green thing in our day. Back then, we washed the baby's nappies because we didn't have the throw-away kind. We dried clothes on a line, not in an 'energy gobbling machine burning up 220 volts;' wind and solar power really did dry our clothes back in our early days. Kids got hand-me-down clothes from their brothers or sisters, not always brand-new clothing. But, that young lady is right. We didn't have the green thing back in our day. Back then, we only had one TV or radio in the house, and we didn’t have a TV in every room. The TV had a small screen the size of a handkerchief (remember them?), not a screen the size of the Colombo district. In the kitchen, we blended and stirred by hand because we didn't have electric machines to do everything for us. When we packaged a fragile item to send in the post, we used wadded up old newspapers to cushion it, not Styrofoam or plastic bubble wrap. Back then, we didn't fire up an engine and burn petrol, just to cut the lawn. We used a push mower that ran on human power. We exercised by working so we didn't need to go to a health club to run on treadmills that operate on electricity. But, she's right. We didn't have the green thing back then. We drank water from a fountain or a tap when we were thirsty instead of demanding a plastic bottle brought in from another district. We accepted that a lot of food was seasonal and didn't expect that to be bucked by flying it thousands of air miles around the world. We actually cooked food that didn't come out of a packet, tin or plastic wrap and we could even wash our own vegetables and chop our own salad. But, we didn't have the green thing back then. Back then, people took the train or a bus, and kids rode their bikes to school or walked instead of turning their mothers into a 24-hour taxi service. We had one electrical outlet in a room, not an entire bank of sockets to power a dozen appliances. We didn't need a computerised gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza joint. But, isn't it sad the current generation laments how wasteful we old folks were just because we didn't have the green thing back then?
TOUCHING LIVES THROUGH SUSTAINABLE AGRICULTURE
AUTHOR : SENAKA DE FONSEKA - CSR MANAGER - CEYLON TOBACCO COMPANY PLC
Ceylon Tobacco Company’s Flagship CSR Project Sustainable Agricultural Development Programme (SADP)
C
eylon Tobacco Company’s (CTC) flagship CSR project, the Sustainable Agricultural Development Programme (SADP) was initiated in 2005 with the vision: ”to reach out to rural families that live below the poverty line and help them achieve self-sustenance by imparting knowledge and resources.” The key objectives of SADP are to improve the livelihoods and nutrition levels of villagers, empower women, enrich the environment and encourage maximum land utilisation. Families that enrol in the programme are introduced to home gardening and animal husbandry during a period of 30 months. This programme will ultimately enable the families to achieve economic independence and self-sustainability.
78 | The Sustainability Edge
As the project expanded, CTC’s CSR steering committee made a decision to set up a separate company for SADP to ensure better control and governance. In 2007, ‘Outreach Projects (Guarantee) Limited’ was incorporated with a Board of Directors, Chief Operating Officer, General Manager and a well-designed structure to achieve the project objectives. SADP is a unique programme that works on the philosophy of “helping those who are willing to help themselves”. Salient features such as voluntary registration, no cash hand-outs and the increment of input based on the commitment of the beneficiaries to rise above poverty have been the cornerstones of its success. Since 2005, SADP has evolved to meet new national challenges, resulting in hybrids of the original programme. As of today, SADP has reached 8,315 families which include 34,413 beneficiaries.
Touching the lives of 16,564 families and over 63,000 beneficiaries across 16 districts.
SADP PLUS
S
ADP PLUS was launched in 2009 in the districts of Trincomalee and Kilinochchi to assist the people of the area which was a national priority at the time. Famers in these areas have access to more land than their SADP counterparts in the south. Therefore, in addition to the programme’s home gardening practices, additional cash crops such as Maize and Ground Nuts were also introduced. This programme has benefited 2,700 famers which includes 11,140 beneficiaries.
SADP LITE
S
ADP LITE was initiated in 2010 at the request of the Ministry of Rehabilitation and Prison Reforms to assist the Army in the rehabilitation of 1,449 ex-LTTE combatants, by offering them vocational training on agriculture at the Kandakadu Farm in Polonnaruwa. This project was completed in 2011.
SADP MEGA ADP MEGA was launched in 2011 as a model farm in a 12-acre land in Sooriyawewa in the Hambantota District. The objective of the project was to share and exchange agricultural expertise and best practices with interested parties in the south of Sri Lanka.
SADP ULTRA
S
ADP ULTRA was launched in 2013 to introduce Leaf Farmers to better their crop management techniques and to promote the growing of other field crops. Spread across 07 districts, SADP Ultra has assisted 4,100 Individual Tobacco Farmers and over 16,000 beneficiaries in its inaugural year.
The Sustainability Edge |79
AUTHOR : SENAKA DE FONSEKA - CSR MANAGER - CEYLON TOBACCO COMPANY PLC
S
AUTHOR : SENAKA DE FONSEKA - CSR MANAGER - CEYLON TOBACCO COMPANY PLC
DISTRIBUTION OF FAMILIES DISTRICT WISE
By encouraging volunteerism and freedom through responsibility, CTC aims to develop the next generation of leaders who are committed to social upliftment. 80 | The Sustainability Edge
An independent study done in April 2014 revealed the impact of this programme on the beneficiaries.
INCOME OF SADP BENEFICIARY Indicators (Farmers)
Base Line (Rs.cts) (0-12 Months)
Mid Line (Rs.cts) (13-24 Months) SADP SADP Plus
End Line (Rs.cts) (25-30 Months)
Graduated (Rs.cts) (Over 30 Months)
A
Average monthly income from home gardening (From SADP)
3,204.00
11,327.00
19,108.00
13,285.00
10,906.00
B
Average monthly income from live stock (From SADP)
-
2,432.00
3,135.00
4,925.00
2,323.00
C
Average total income from (SADP) (A+B)
3,204.00
13,759.00
22,243.00
18,210.00
13,229.00
D
Average income from agriculture other than SADP
1,970.00
5,487.00
5,890.00
7,132.00
7,354.00
E
Total monthly average income from agriculture and live stock (C+D)
5,174.00
19,246.00
28,133.00
25,342.00
20,583.00
F
SADP Contribution to agriculture and livestock income as a % (C/E*100)
62%
71%
79%
72%
64%
G
Professional / Occupational income
5,980.00
9,630.00
9,150.00
9,427.00
9,219.00
H
Total monthly average house hold income (From all types) (E+G)
11,154.00
28,876.00
37,283.00
34,769.00
29,802.00
I
SADP Contribution to total house hold income as a % (average) (C/H*100)
29%
48%
60%
52%
45%
AVERAGE NUTRITION INTAKE RATIOS Per Day Calorie Intake
Recommended Daily Allowance
Base Line
Mid Line
End Line
Graduate
Energy (Cal)
3000 cal
0.92
0.95
0.98
1.02
Protein (g)
55g
0.91
1.07
1.31
1.19
Fat (g)
65g
1.09
1.31
1.22
1.03
Carbohydrate (g)
300g
1.92
1.62
1.73
1.51
Calcium (mg)
600mg
0.74
0.87
0.96
1.20
Iron (mg)
25mg
0.79
0.91
1.23
1.06
Retinal (µg)
750(µg)
0.34
0.39
0.41
0.32
b-Carotene (µg)
3000(µg)
0.63
0.95
1.39
1.45
Vitamin C (mg)
50mg
2.43
3.98
4.61
4.19
Formula = Per Capital Nutrient Intake
RDA
A
t the outset, a SDAP family earned roughly Rs 3,000 and at the time of graduation (completion of 30 months training) a family roughly earned Rs 18,000, which is a 500% increase of their original income.
AUTHOR : SENAKA DE FONSEKA - CSR MANAGER - CEYLON TOBACCO COMPANY PLC
Ref
‘1’ is ideal
T
he table above depicts the daily nutrient intake required as advised by the ‘WHO’. As a result of SADP, most families have achieved or exceeded the recommended daily nutrient requirement. In 2013, the SADP programme was recognised by the Ceylon Chamber of Commerce as a ’Project for Environmental Value Addition’ at the Best Corporate Citizen Awards 2013. The Sustainability Edge |81
YALA A FLAWED SUCCESS STORY?
Y
ala national park is now ranked among the world’s top destinations for watching leopards in the wild. As locals and foreigners continue to flock to Yala to glimpse these usually elusive big cats, the park is now plagued by overcrowding and visitor management issues. What is the impact over-visitation creates on the conservation of wildlife at Yala. Is it entirely a negative outlook or are there some positives which have been overlooked? The article concludes on leveraging on the iconic status of the Sri Lankan Leopard to develop a long term sustainable strategy for wildlife tourism in Sri Lanka.
Yala – A hotspot for Leopard watching
Asian Elephant are encountered on most game drives at Yala
AUTHOR : RIAZ CADER
Leopard cub atop a tree
82 | The Sustainability Edge
L
ocated in the south-east corner of Sri Lanka lies Yala National Park, undoubtedly the country’s most popular destination for wildlife viewing. With over 200 species of birds and a variety of larger animals including the Asian Elephant, Sloth Bear, Jackal, Mugger Crocodile, Sambar, Spotted Deer, Asiatic Buffalo, Wildboar, Grey Langur, Toque Macaque and Black-naped Hare, Yala can be regarded among Asia’s top national parks for viewing the larger mammals. The varied landscapes from lagoons to rocky outcrops immersed among the scrub jungle are a treat to the eye as you seek out the park’s wildlife. Ultimately though the majority of the visitors to Yala have one target in mind – Panthera pardus kotiya. Block I of Yala is one of the strongholds for the Sri Lankan Leopard, the country’s apex predator and the only species of big cats found on the island.
Therefore, there is a lot of merit in asserting the bold claim that Yala is the world’s top spot for watching leopards, a slogan now boldly carried by the tourism sector in promoting destination Sri Lanka. A number of coffee table and photographic publications, natural history documentaries aired internationally and reputed magazines have prominently featured the leopards of Yala. Internationally renowned film makers and big cat experts Jonathan and Angela Scott were so impressed by the number of good leopard encounters at Yala during their visit to Sri Lanka in 2011 proclaiming that, “If God created somewhere for leopards, it had to be Yala”.
As with lions in Africa, tigers in India and more recently jaguars in the Pantanal in Brazil, Yala is now internationally coveted as a leopard watching destination. Big cats can often mean big business; their beauty, grace and raw power symbolises the true essence of the wilderness, drawing visitors from all corners of the globe to get a glimpse of these magnificent creatures. The advent of digital SLRs and social media in the past decade has accelerated this effect as photographic encounters are now posted and shared across the globe.
If God created somewhere for leopards, it had to be Yala. Jonathan & Angela Scott Big Cat Experts
Vehicles line up to get a glimpse of a leopard at a distance
Overcrowding and poor discipline plaguing Yala’s reputation
Y
ala’s popularity is now starting to have detrimental effects on the park itself. Once a destination where the visitors would get away from the hustle and bustle, Yala is now often extremely over crowded. There are close to 1,000 bedrooms available within the outer peripheries of Yala around Tissmaharama, Kirinda and Kataragama in guest houses, hotels and bungalows. Over 600 registered safari vehicles now operate within Yala Block I. Poor discipline among the safari jeep operators and the use of mobile phones sharing locations of leopard sightings cause traffic jams at sightings and speeding within the national park, sometimes with tragic consequences. The wildlife is now at a very real risk of being run over and there have been at least two separate cases of leopards being killed due to collisions with vehicles inside Yala.
Despite the high density of leopards in Yala, they are animals by nature that do not easily reveal themselves. It often requires a minimum of 3-4 game drives to have good opportunities for close-up encounters, a fact which is over looked by most tour operators and safari jeep drivers. Tour groups are often bought in overnight for just a single game drive and false promises are made to guests guaranteeing leopard sightings. Quite often the sightings elude them or they are left frustrated stuck in a traffic jam lining up to see a speck of a leopard at a distance. The authorities are at present, helpless to restrict visitor numbers due to the external pressures generated from the tourism sector itself and the park is now operating at levels well above its ideal carrying capacity. Unsurprisingly, there have been an increasing amount of negative publicity in the local media and on online travel forums highlighting the issues at Yala.
The Sustainability Edge |83
AUTHOR : RIAZ CADER
A
cross Africa and India, the leopards are widespread however remain vulnerable to being against the larger and more dominant predators such as lions, hyenas and tigers and are often weary spending most of their time hidden. Sri Lanka’s leopards are the top predator of the land and are thus bolder and spending more time on the ground. At Yala, decades of visitation have ensured that leopards here are habituated to safari vehicles, providing ample opportunities for close-up encounters. Managed intervention such as the creation of additional waterholes supplemented by brief inter-monsoonal rains has enabled the animals to stay within the park year round, and to withstanding the long and harsh dry season. Due to decades of protection, poaching has been minimal at least within the central parts of the park, allowing populations of prey species to flourish. The rocky outcrops, scrub jungle habitat with large Palu and Malitthan trees along with numerous waterholes, provide excellent terrain for the leopards to hunt their prey. All of the above factors have resulted in almost perfect conditions for the leopard to thrive, enabling them to survive in much smaller territories. Yala Block I has the highest concentration of leopards in the world based on the findings of local researchers – A guestimate would probably be over 50 adult leopard and possibly another 15 – 20 sub-adults and cubs living in an area spanning just 140 square kilometres. That’s an average of one leopard per every 2-3 square kilometres!
Curious sub-adult Leopard approaches close to a vehicle
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Yala – A hotspot for Leopard watching
AUTHOR : RIAZ CADER
hile visitor management issues undoubtedly plague Yala, it is not necessarily a negative outlook for conservation. Fortunately in Sri Lanka’s national parks, the safari vehicles are permitted only within designated routes and the animals despite some harassment by the road side, are free to roam at leisure once they move away. In national parks where there is hardly any visitation (Lunugamvehera, Somawathiya Chaithiya and outer areas of Uda Walawe for example), poaching and laying of traps for bush meat are rampant, while the land is encroached with illicit agricultural activities and for cattle grazing. The concentrations of wildlife encountered in these areas are very low and the animals are very skittish, definitive indicators of disturbance to their environment. While minimal levels of poaching and other illicit activities do take place in the fringes of Yala Block I, the centre of the park remains well protected. Regular visitation is a natural deterrent for poaching. Prey species such as spotted deer, peacock and blacknaped hare are abundant and the leopard population also seems to be in good health with several sets of cubs scattered throughout the park. More importantly, the high visitor numbers to Yala, provides employment to thousands of families in towns such as Tissamaharama and Kirinda. Whether it is running a local garage repairing safari 84 | The Sustainability Edge
jeeps, being employed within a tourist hotel as a safari jeep driver, these locals are benefiting from the tourism to Yala and the leopard has played a pivotal role in drawing visitors to the area. Therefore it is in the interests of these communities to ensure that Yala’s wildlife is granted adequate protection otherwise in the long term its destruction would pose a grave threat to their own livelihoods. In today’s context, whether in Sri Lanka or any other part of the world, the long term conservation of a wilderness area can only be achieved if it provides local communities opportunities to enhance their livelihoods. If a wilderness area is perceived to have no economic benefit, it will gradually be destroyed. The loss of Handapangala in the 1990’s, an area of minimal visitation where herds of Asian elephant used to roam being converted to sugar cane plantations is one such example. Near the cultural triangle meanwhile, the presence of hundreds of elephants at Minneriya and Kaudulla tanks were recognised for its tourism potential, both have been declared with the national park status and the seasonal congregation of elephants dubbed as ‘The Gathering’ is now ranked among the world’s top wildlife spectacle (Ranked #6 by Lonely Planet in 2012). Hence eco-tourism or as I prefer to call it nature and wildlifebased tourism despite some of its drawbacksis globally recognised as one of the most successful means of aiding conservation efforts within wilderness areas.
Leopard can be seen more frequently around the waterholes in the dry season from June - September
Asiatic Buffalo are among the more numerous of Yala’s inhabitants
Thinking Ahead - Diversifying and Sustaining Sri Lanka’s Leopard Trail
In the upcoming years, it is vital that the facilities in some of these more unused parks are upgraded. Anti-poaching efforts need to be intensified; the existing routes need to be expanded so that visitors can cover more parts of the park. A number of man-made waterholes should be created and maintained during the dry periods so that
a higher density of animals can survive within protected areas similarly to Yala Block I and more recently at Wilpattu. Wildlife can be quite resilient and bounce back quickly if adequate protection is granted and once the density of prey species such as spotted deer, wild boar and sambar increase, the leopard numbers and sightings too will rise. There should be encouragement and perhaps concessions granted for the construction of small to medium sized safari lodges and bungalows to provide visitors options for accommodation. The locals living in the vicinities of these wilderness areas should be provided opportunities for deriving livelihoods from well managed tourism activities. As a nation, we as Sri Lankans can be incredibly proud that over 20% of the country is still demarcated as protected areas for wildlife having preserved a wealth of biodiversity to date. The
Riaz Cader
teachings of the Buddha have always historically placed a great importance on the protection of the environment and its inhabitants. Mihintale is believed to be the world’s oldest sanctuary, dating back to the 3rd century BC during the reign of King Devanampiya Tissa while Wilpattu and Yala were both declared as national parks as far back as 1938 when hunting was rampant. With tourism on the rise, it is vital that we reap the full benefits of protecting our wilderness areas by gearing them up to encourage visitation. Otherwise the less frequently visited parks will gradually be encroached upon and perish while overcrowding and indiscipline will worsen in the more popular national parks. As the country continues to develop its infrastructure and the population continues to grow, the next decade will be vital in understanding our long term fate and deciding on what is to be left for the future generations. Works in the field of wildlife and naturebased tourism and continues to visit Sri Lanka’s wilderness areas to pursue his passion of wildlife photography. Riaz strives to work with like-minded individuals in helping conserve Sri Lanka’s last remaining natural habitats and promote responsible wildlife watching practices.
AUTHOR : RIAZ CADER
A
s Sri Lanka targets 2.5 million tourists per year, the country is working collectively to promote different experiences and destinations. Wildlife tourism too should be analysed taking in a long term perspective. It is visibly clear that the leopard and the elephant are two of Sri Lanka’s most iconic species and there is an increasing demand to see these creatures in the wild. While elephants can be seen in most of Sri Lanka’s national parks located in the dry-zones, Wilpattu is the only other park alongside Yala where the leopards can be seen frequently where visitor numbers are on the rise. Leopards are also occasionally encountered at Kumana, Lunugamvehera and Yala blocks III-V in the south, Wasgamuwa and Somawathiya Chaitiya in the north-central province and forested areas near Mannar which at present have very few visitor facilities.
The Sustainability Edge |85
ECONOMIC SUSTAINABILITY
STRATEGIC
CORPORATE SUSTAINABILITY Strategic Corporate and National Sustainability
U
nlike at any other point in history, the planet is faced with a crisis of unimaginable proportions which the world’s leaders have intentionally rejected and ignored. Postponing decisive action as the ‘crises’ will not impact present generations but it is an act of betrayal for all future generations as its the present generation that has the responsibility and opportunity to secure the planet for future generations. The two most significant challenges the planet faces today are:
AUTHOR : RAVI FERNANDO - OPERATIONS DIRECTOR
- Poverty – A Social sustainability challenge confirmed by the emergence of the 99% vs 1% global movement and the fact that over half the 7 billion inhabitants live on under US$ 2 per day. Today the top 300 most wealthiest people on the planet own and control 43% of the planets US$ 226 trillion wealth and less than 1% control over 80%. This leaves the 80-90% of the 7 billion people of the planet in ‘survival’ mode. - Climate Change – An environmental sustainability challenge affected by Green House Gas (GHG) emissions which impact global warming and will contribute to a temperature rise of 2˚C degrees. The devastating impact of this issue will give rise to many nations and its people with impending water scarcity, which will cause the next phase of a global conflict. The last eleven years are said to be the warmest temperature levels recorded in history!
E
very Leader endowed with the stewardship of either a nation or business need to address the above two issues and develop strategies that pre-empt a catastrophe by facing reality like never before. The most worrying trend is that global GDP by 2010 reached US$ 62.2 trillion which had doubled in ten years since 2000. The projected 2020 figure is US$ 133t by 2020 and US$ 308t by 2030. From a mere US$ 32t in 2000 to projected to reach US$ 308t by 2030…an unprecedented increase which will require a level of resource utilisation that the planet cannot sustain and will definitely not be able to regenerate..
88 | The Sustainability Edge
Figure 1 – UK Govt Office for Science
The world economy is growing …..
with resource utilization at unprecedented & Growing World Economy unsustainable levels!!!!
Nominal world GDP since 1990 USD billions
World GDP (Nominal)
308,285
300,000 260,000
220,000
180,000 133,676
140,000 100,000 62,346 60,000
20,000
22,856
32,061
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Figure 2 – Global GDP Projections
The global population reached 7 billion people with 40-50% living on less than US$ 2 per day and ‘surviving’ at best, 11% have no access to safe water and 35% have no access to sanitation. In 2011 the economic cost of disasters hit an all time high of US$ 380 billion. Many of the global issues could have been addressed if the nations cut back the massive investment behind defense. The top three spenders being: USA US$ 739b, China US$ 89.8b, and UK at US$ 62.7b. The projected GDP growth is beyond the ‘regenerative’ capacity of the planet and will require an ‘unprecedented consumption of resources’ which in turn will ‘rob’ resources
Source: IMF, Standard Chartered Research
from future generations. Projections indicate that nothing short of two planets would be required by 2030 to meet the resources needed at the projected level of consumption and growth. The reality is that 20 years after the Rio conference in 1992 the percentage of the World’s energy needs met through renewable energy is yet under 15% and brands that impact sustainability or claim to be ‘ethical’ are even less. Finally nations and businesses which have embedded Strategic corporate sustainability in there National or business strategies are few and far between. The threshold required to bring about a tipping point globally is not in sight.
Why has sustainability not yet reached a tipping point?
I
n recent times national and business leaders seem to have acknowledged the need for ‘Sustainability’ more to meet the approval of organisations like the United Nations which is mainstreaming the agenda item than through conviction and commitment. Nations and Business have focused on ‘Doing good to look good’ with little respect for the need for strategic sustainability mind sets and embedding and mainstreaming sustainability into either national strategies or corporate strategies.
Until and unless the global reward system changes from its obsession with the short term and re-calibrates its focus from short term results for survival in both business and politics. No matter how much evidence exists the ‘Knowing – doing gap’ is so wide and will never be bridged unless we have leaders with a ‘Sustainability mind set and a commitment to Strategic Corporate Sustainability’. Otherwise a tipping point for sustainability will remain a concept at best.
Strategic decisions that impact sustainability can never be made by leaders in ‘transit’ or by leaders who focus on delivering the next quarter’s result at any cost.
The one emerging silver lining is a new breed of global leaders with a strategic sustainability mind set such as; President Barack Obama, Jeff Immelt of GE, Paul Polman of Unilever, Ray Anderson of Interface and organisations in the likes of: Toyota, Puma, Nike, Cadbury, Patagonia and even Nations such as: Denmark, Sweden, United Kingdom, Singapore and also key influencers like: John Elkington, Al Gore, David Suzuki, Jeffery Sachs, Nicholas Stern who have begun the journey to embedding Strategic corporate / national sustainability and advocating it against all odds.
Shaping Responses to Global “Mega” Trends
The approach has to be a ‘holistic’ one that addresses the ‘triple bottom line’ as mentioned below whereby each issue is engaged with in terms of its impact: • Energy and Fuel -Economic Sustainability and Environmental stewardship. • Material Resource Scarcity Economic Sustainability and Environmental stewardship. • Urbanisation - Social Sustainability and Environmental stewardship. • Food Security - Social Sustainability and Environmental stewardship.
One cannot develop a strategy for any of the above without taking into consideration both a Socio-Environmental and Eco-Environmental impacts. I.e. an Energy and Fuel strategy implemented should entail methods on how to reduce dependence on fossil fuels and to invest in a mix of renewable sources. A Food security strategy has to take into consideration both land and water utilisation. Material scarcity is best addressed by the optimum use of the natural resources especially with the new wave of science and nanotechnology which presents many opportunities for economic growth sustainably, where ‘less is more’. Amongst the new emerging modeling tools which will be available to national decisionmakers in the future, to make holistic Strategic Sustainability decisions is the ‘Foreseer’ tool which is in its early stages of development by a team at Cambridge University. A Tool for system thinking in the ENERGY, LAND & WATER NEXUS which provides data input which covers each of the areas identified and enables strategic forecasts of possible scenarios which in turn needs a targeted and strategic approach. Many Nations can benefit from this development in the future.
Requirements for Sustainability Government
For
Business
Sustainability
Consumers
to work…..
Sustainable Business /Economy
Figure 3 – Sustainability – Triple Bottom line
Sustainable Consumption
To do so, how many leaders have a sustainability mind set and have brought its constituents along towards supporting strategic decisions versus short term survival?
We simply cannot afford to wait any longer. Our planet’s natural resources are depleting at unprecedented rates. We are already seeing real leadership from some of the largest companies around the world. The time has come for all in the business community to stand up, take meaningful action, and become part of the solution. Frances Beinecke President Natural Resources Defense Council USA
Sustainable Policy
RAF INSEAD NOV 2010
Phase 1 - Governments need to have in place and implement ‘Sustainable policies’ as the first step in a journey towards sustainable development. These policies should secure the strategic interests of a nation from a sustainability perspective. The question is how many enlightened nations have a National Sustainability policy and strategy in place which addresses the economic, environmental and social challenges in a coordinated and strategic manner?
4
Figure 4 – Requirements for Global Sustainability (RAF © November 2010)
Implying that these future challenges cannot be tackled in isolation. But in a holistic and sustainable manner based on a strategic Sustainability policy.
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AUTHOR : RAVI FERNANDO - OPERATIONS DIRECTOR
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o bring about a tipping point, we need a global ‘mind shift’ towards sustainability beyond rhetoric and narrative commitment. We need more visionary leaders, enlightened consumers who have a ‘reality mind set’.
Phase 2 - If a National sustainability policy and strategy is in place, then and only then will business have the impetus to drive towards sustainable business and embed it in corporate strategy and thereby commit to ‘Strategic Corporate Sustainability’. Unlike at any time in history the sphere of influence of business impacts planet earth directly. If one looks at the global economy, business occupies an increasingly commanding position with no less 46 of the top 100 World’s largest economic entity rankings. In the past almost all of them were nations. This emerging sphere of influence needs to be harnessed for a sustainable planet. The silver lining is that in the past decade business leaders are striving to move in that direction at least in ‘narrative’ as confirmed
by the UN Global Compact - Accenture CEO Study 2010 titled ‘A New Era of Sustainability’. Over 800 CEO’s were interviewed and some of the results are as follows: • 93% of CEO’s believed that ‘sustainability’ as important to the company’s future. • 96% felt that Sustainability issues must be fully integrated to strategy and operations One cannot help but refer to this phenomenon as ‘narrative commitment’ to sustainable business! If this narrative commitment even remotely translated to action we would have gone beyond the 1% barrier of those listed companies in the world committing to Global Compact principles and embedding sustainability in strategy as demanded by Strategic Corporate Sustainability. Clearly
the ‘knowing – doing gap’ is wide and will take more than words to bridge. Phase 3 – If government policy was in place and business embraced and embedded the subject in strategy, it would be inevitable that products and services will be sustainably made and delivered. This will then engender ‘sustainable consumption’ as the ‘scale’ of products which are sustainable will increase and be made available widely. If this was to happen where 86% of the world’s consumption takes place today, we would have achieved a ‘tipping point’ for sustainable consumption. One of the pre requisites for this to happen is, if the end consumer is enlightened and educated of the urgent need to exercise ‘personal responsibility’ on how they can make a ‘sustainable choice’ every time.
Strategic Corporate Sustainability / Corporate Strategy Strategic Corporate Sustainability
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hilst organisation after organisation strives to increase stake holder value by impacting people, profit and planet in an acceptable way has given birth to the concept of the “Triple bottom line” and stakeholder value. Corporate/ National responsibility will no longer be an option but mandatory for all organisations / nations. Strategic Corporate Sustainability will become the way business organisations and nations commit to being responsible where doing good and doing well, will become the new normal. Sustainable business is increasingly becoming the aspiration of all business. The emerging new paradigm for sustainable business is Strategic Corporate Sustainability as a means to embedding sustainability in corporate strategy and creating Sustainable value. Strategic Corporate Sustainability requires a two step approach.
AUTHOR : RAVI FERNANDO - OPERATIONS DIRECTOR
Step 1 – Commit to Sustainable business The first step and prerequisite for any business to move towards Strategic Corporate Sustainability is to ‘commit to sustainable businesses’. Corporate responsibility is a business’s commitment to sustainable business. The world’s best are all moving in the direction of sustainable business as they know all their stakeholders which includes the emerging ethical consumer have begun to demand a new normal for corporate responsibility. ‘National responsibility could be paraphrased to mean the same, ‘A nation’s responsibility is to make a commitment to its sustainability by adopting a national sustainability strategy’.
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•Social •Economic •Environment
Corporate Responsibility = Commitment to Sustainability
Corporate Strategy = Competitive Differentiation
(C) Ravi fernando 2006 July
Figure 5 – Strategic Corporate Sustainability (© Ravi Fernando July 2008)
A commitment to implementing strategies for Sustainable Business which differentiates the organisation, whilst impacting all stakeholders which are in its sphere of influence. As illustrated that point is reached when an organisation / nation recognises that its corporate responsibility is to make a commitment to sustainable business and develops a Strategic Sustainability approach. Sustainability strategy will address everyone of the triple bottom line elements that the business or nations have within its sphere of influence and sustainability reporting will need to be mainstreamed. This is a key first step for most Business / Nations a recognition to do so considering the global agenda and emerging paradigm. Step 2 – Embed Sustainability strategy which differentiates the organisation Many business and nations have recognised the need to be committed to sustainability but the issue is committing to ‘the strategy’ by embedding sustainability in the corporate strategy is what is required.
In most cases Corporate / national strategy and sustainability strategy are two separate strategy streams which have very different priority and resources allocated. Corporate strategy is the main focus and is independent of the other and will override the sustainability strategy. The tipping point for sustainability will come when ‘Sustainable business/corporate strategy and Sustainable policy / national strategy are ‘ONE’. Strategic corporate sustainability is achieved when the future differentiation of its Business / Nation, are based on a sustainability paradigm. At step two those ‘enlightened’ Business / Nations make the transition from two separate strategies to one strategy, while mainstreaming a sustainability strategy and embedding it in traditional corporate strategy as they become one.
GE has never forgotten the importance of R&D. Each year, we put six percent of our industrial revenue back into technology – So much that more than half of the products we sell today didn’t even exist a decade ago. We’ve made a business decision to focus all the innovative powers of GE on solving the problems of energy use and environmental stewardship.
Mark Parker CEO & President Nike
Jeffrey Immelt CEO & Chairman General Electric
ncreasingly, the two elements available to doing so are narrowing down to either Environmental or Social sustainability as Economic sustainability is the equaliser and hygiene factor. The point at which sustainable business, corporate responsibility and corporate strategy interject is the organisations Strategic Corporate Sustainability.
Similarly Unilever’s ‘Sustainable living plan’ and Toyota’s drive towards Hybrid technology are setting the pace for ‘green products and vehicles’ changing the game by aligning sustainability strategy and corporate strategy to be one. For business / nations to migrate towards this second step, they need to understand the focus required in each of the triple bottom line elements as it makes that transition.
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Business and even enlightened nations are increasingly ‘differentiating’ on either Environmental sustainability where its innovation is focused on the emerging green business opportunity or social sustainability, where it could impact the organisations employee, community and society in a manner that sets it apart. Economic strategy decides the viability of an organisation and in sporting parlance gets entry to the game. The ‘Eco-magination’ initiative of GE, Unilever’s ‘Sustainable Living’ plan and Toyota’s commitment to hybrid automotives are amongst the few example of embedding sustainability strategy in corporate strategy. In each of these organisations, its leaders have demonstrated that ‘Strategic Corporate Sustainability’ is not only possible but makes strategic business sense. General Electric sold US$ 17 billion in ‘Ecomagination’ products in 2008 out of total revenues of US$ 182.5 billion. The company increased this figure to US$ 25 billion in 2010. GE has also set a target for R&D investment in cleaner technologies: The investment was increased to US$ 1.5 billion by 2010, up from US$ 1.4 billion in 2008 and US$ 750 million in 2005.
• Business needs to strive for Strategic Corporate Sustainability where by the commitment to sustainability should be followed by the embedding of sustainability in Corporate strategy. This process should be championed by the CEO and managed by the Chief Sustainability Officer. • Consumers the world over should be all enlightened on the need for making sustainable choices and empowered to do so by providing them with Sustainable options by both Governments and Business.
Prime requirements in the quest for achieving sustainability: • Nations need to embed Sustainability policy and set up National Sustainability steering committees which have the Key Ministers which impact – Economic, Social and Environmental issues reporting to the Nations Leader who should act as the Nations Sustainability champion through conviction.
Ravi Fernando Operations Director Malaysia Blue Ocean Strategy Institute
Ravi Fernando holds a MBA from the University of Colombo and is a Fellow of the Chartered Institute of Marketing (UK), he holds a Diploma in International Management and completed the Advanced Management Program at the INSEAD Business school in (France). He is an Alumni of the University of Cambridge Institute for Sustainable Leadership having completed both his Post. Grad. Certificate in Sustainable Business in 2008 with Distinction and a Masters in Sustainability Studies at Cambridge University in 2014. In September 2007 he won a “Global Strategy Leadership award” at the World Strategy Summit for his work on Ethical branding for the Sri Lankan Apparel and Tea sectors.
Figure 6 - Strategic Corporate Sustainability – Focus and Sphere of Influence © Ravi Fernando - April 2012 Strategic Corporate Sustainability
Strategic National Sustainability – Focus & Sphere of influence
Strategic Corporate Sustainability Focus & Sphere of influence
Economic Sustainability
Policy / Governance / Research & Development / Alliances & GDP / GNP growth
Strategy / Innovation / Differentiation / Governance / Collaboration / Profit / Cash
Social Sustainability
Policy / Society / Community
Strategy / Employee / Community
Environmental Sustainability
Policy / GHG Emissions Renewable energy / Water / Waste / Green Cover
Strategy / Carbon footprint / Water / Green Business & Sustainable innovation / Life Cycle analysis
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Integrating sustainability is not just a good opportunity for business. It is essential for success in a world of constrained resources. Right now every business has a choice to make. We choose to move fast, using sustainability as a force for innovation. We choose to embrace transparency, collaboration and advocacy as tools to unlock opportunity and enable us to thrive in a clean and green economy.
SOCIALLY RESPONSIBLE BUSINESS Strategy and Society: From CSR to SRB
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Abstract trategy is defined as the chosen direction a company undertakes in order to occupy a distinct position in the market, which inevitably impacts the society in multiple ways. When a corporation formulates and executes a strategy that is being cognisant of its impacts on the society, then the company’s actions are reckoned to be responsible.
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It is debated that a company’s responsible actions take four different forms or levels, based on the degree of the companies’ engagement with the society. At the basic level, Responsible Corporate Citizenship (RCC) relates to championing a social cause. This is the act of ‘social giving’. At the next level, through Cause-Related Marketing (CRM), the organisation gives back to the society and in the process, builds its reputation. The third level - Strategic Corporate
Social Responsibility (CSR) attempts to go beyond raising the profile of the corporation, and improves the competitive context in which it operates. At the highest level of the corporation’s engagement with the society, the corporation creates market space in which the socio-economically disadvantaged people are located. Here, the company is engaged in Socially Responsible Business (SRB) and in a sense makes CSR the very purpose and its reason for existence.
sued is the means by which the end of ROI and profitability is achieved.
tion in the market. Society is that which lies outside the company, but is directly or otherwise impacted by what the company does. This article exclusively focuses on the societal impact created by corporate strategy in terms of Corporate Social Responsibility (CSR) and Corporate Governance (CG). The former is defined as, achieving commercial success in ways that honour ethical values and respect for people, communities and the natural environment (Business of Social Responsibility). Corporate Governance is defined as the system which promotes corporate fairness, transparency and accountability. Although the principal beneficiary of CG would be the investor, corporate transparency and accountability will promote the ethical conduct of the organisation, which in turn benefits society. This article mainly focuses on the societal benefits of CG, rather than those that accrue to investors.
Introduction
AUTHOR : PROF. UDITHA LIYANAGE - SENIOR MARKETER
he subjects of strategy and society are placed within the context of business and its management. Strategies are pursued by business organisations with the central intent of taking a particular stance or position in the market. This position of the organisation must not merely be better, but rather, different to the positions taken by competing organisations. A strategic position represents the unique value proposition made by the organisation to its target market(s), which in turn results in the organisation acquiring a set of value-associations that is both unique and distinct. In summary, the organisation now stands for ‘something’ that sets it apart from the others in the industry. Clearly, the strategic pursuits should lead to acceptable rates of return on investment (ROI) and levels of profitability. From a purely shareholder perspective, this is the end goal, and the strategy that is pur-
From a broader stakeholder perspective, the organisation’s rate of return on investments and levels of profitability must go beyond the benefits that accrue to shareholders. They must shape the larger society, comprising of multiple communities, and the environment – the people and the planet. Hence, from a stakeholder perspective, the success of a business strategy is measured from the vantage positions of multiple stakeholders. Here, strategy and society cannot be viewed as a dichotomy, but rather as one, that reflects the other, forging an inseparable nexus between the two. In this article, strategy is defined as the chosen direction of the company, which enables it to take a unique and distinct posi-
TREATMENT OF CSR AND CG
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t has been argued that the dominant perception of both CSR and CG, especially in developing countries, which treats them as ‘nice to do’ endeavours, whose costs do not typically outweigh their benefits to the organisation (Tsoutsoura, 2004). Consequently, many corporations have either failed to pursue both CSR and CG with the purpose and rigour they deserve, or approach them in a way that is markedly disconnected with business and strategy, i.e., as a purely philanthropic endeavour.
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If the impact of CSR and CG are seen to create on the society are seen as activities that incur costs that outweigh the benefits to the corporation, then such activity will be carried out either because they are mandatory, as enforced by a regulatory authority or out of a sense of sympathy with a social cause, leading to charitable action and philanthropy. It is discussed that such ‘must do’ actions, compelled by regulation or ‘feel good’ initiatives, propelled by a sense of compassion in the name of CSR will at best
remain in the fringes of corporate endeavours. Moreover, such attempts at CSR are extremely unlikely to stand the test of time. CSR activities of companies that do not take centre stage, and remain incidental and disconnected to its core businesses; such companies are likely to slowly, but surely die off.
CSR VERSUS BUSINESS
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ccording to Friedman (1970), in a free society, “there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits, so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” Friedman further claims that the state should address social problems without passing the responsibility to companies. He points out that corporates who ideally hire an executive to manage this issue, takes the company’s money and resources and allocates the funds but the executive may fail to serve the interests of his or her employer. The individual given this responsibility would spend the resources on ‘social’ initiatives which he or she deems fit, whereas the executive may not have neither the skills nor jurisdiction to do so.
On the other hand, there are many appeals by others for corporate adoption of CSR principles. Although the government is mainly responsible for addressing those issues, the contribution of private firms can be substantial. There is also the argument that there is a shift in the balance of power. According to the Organisation for Economic Cooperation and Development (OECD), of the 100 largest global economies, as measured by GDP, 51 of them are US corporations and only 49 are Nations. Thus, economic power has clearly shifted to the corporations. Therefore, they should have an increasing role and responsibility for addressing social problems. For example; the government sets the regulations and the minimum standards for the workplace, but a company can further improve the work environment and the quality of life of its employees. A firm cannot ignore the problems of the environment in which it operates. The
poverty of a Nation citizens, political unrest, and the exhaustion of natural resources can have destructive effects on an organisation. For instance; resources that are used in the production process and which, at the beginning of the industrial revolution were abundant are now in many regions of the planet, scarce, polluted or diminishing. Naturally, this imposes an extra cost to the corporations and may force them to relocate or to cease operations. From one perspective, companies may be poorly equipped to address some of the social or environmental problems, but from another perspective, no matter how poorly equipped, companies may still be best positioned to ameliorate the problems. (Tsoutsoura, 2004) It is argued that CSR (including the social benefits of CG), and its relationship with business – the Strategy / Society duality takes four distinct forms or levels as follows:
Responsible Corporate Citizen
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n Level 1 of the pyramid illustrated, the corporation takes two positions. At first, it does not want to take deliberate action towards ‘not taking anything away from society’ (including the environment and the people). Such action is exemplified in the non-recruitment of child labour and the installation of water systems, management of waste disposal and environmental degradation. Here, corporations adopt damage control measures to minimise or mitigate harmful effects on the people and planet.
Well conceived good citizenship and philanthropic initiatives involve far more than writing out a cheque and forgetting about it. They specify clear, measurable goals and track results over time. Porter (2006) cites the example of General Electric (GE) in the United States. GE launched a program to adopt underperforming public high schools near several of its major U.S facilities. The company contributed between US$ 250,000 to US$ 1 million over a five year period to each school and made several other donations as well. GE managers and employees play an active role by working with social administrators to assess needs and mentor or
Figure 1: “Strategy Vs Society” Pyramid tutor students. In an independent study of ten schools in the program, between 1989 and 1999, nearly all showed significant improvement, while the graduation rate in four of the five worst performing schools doubled from an average of 30% to 60%. Effective corporate citizenship and philanthropic initiatives such as that of GE, creates goodwill and improves relations with local governments and other important constituencies. GE’s employees feel a sense of pride when participating in these initiatives. The second part of Responsible Corporate Citizenship is mitigating the harm arising from a firm’s value chain activities. This is an operational challenge because, there are a myriad of possibilities the value chain impacts within each business unit. Many companies have adopted a checklist approach to RCC, using standardised sets of social and environmental risks. The Global Reporting Initiative, which is rapidly becoming a standard for CSR reporting, has enumer-
ated a list of 141 CSR issues, supplemented by auxiliary lists for different countries. A proactive approach is adopted by B&Q, an international chain of home supply centers based in England. The company has begun to analyse systematically tens of thousands of products in its hundreds of stores against a list of a dozen social issues – from climate change to working conditions at its supplier’s factories, to determine which products pose potential social responsibility risks, and how the company might take action before any external pressure is brought to bear on it (Porter, 2006). In essence, RCC behaviour in mitigating harmful social and environmental effects are about best practices. However, RCC remains incidental to the corporation’s core business. It is about the corporation ‘giving’ as in charity / philanthropy, and ‘not taking away’, in the case of removing or mitigating harmful effects on the people and the planet.
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AUTHOR : PROF. UDITHA LIYANAGE - SENIOR MARKETER
Secondly, the Responsible Corporate Citizen (RCC) may attempt to, ‘give something back to society’, in the belief that it takes a great deal from the society in the form of resources and markets. The company believes that it is only right that some of the bounty is given back, for good measure. Such intent leads to charity and philanthropy. Importantly, the Responsible Corporate Citizen is ‘giving’ without the manifest intent of being compensated for such giving. It is an attempt at ‘do good’ and being responsible.
Cause Related Marketing
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t Level 2, the corporation does ‘give’ something of value to the society. It is about ‘doing good’ but with a sharp eye on ‘getting back’ value for the corporation. Cause-Related Marketing (CRM) emerged as a veritable tool of Marketing Communications in the early 1980’s. CRM activity brings forth a shift in the corporation’s focus, from consumer needs to consumer interests. Traditional marketing conceives that the central endeavour of marketing is to identify, anticipate and satisfy customer needs or requirements profitably. CRM, placed within the larger context of societal marketing attempts to embrace the consumer’s interests and wellbeing, rather than mere customer needs and desires. CRM is defined as: the public association of a for-profit company with a non-profit organisation, intended to promote the company’s product or service and to raise money for the non-profit. CRM is generally considered to be distinct from corporate philanthropy because the corporate dollars involved in CRM are not outright gifts to a non-profit organisation, hence not tax-deductible. The term ‘Cause-Related Marketing’ was first used by American Express in 1983 to describe its campaign to raise money for the restoration of the Statue of Liberty. American Express made a donation of US 1 cent to the restoration efforts of the Statue of Liberty, every time someone used their charge card; the number of new card holders soon grew by 45%, and card usage increased by 28%. In their efforts to diversify and enhance their funding base, non-profits have embraced CRM. The practice has evolved to include a wide range of activities from simple
agreements to donating a percentage of the purchase price for a particular item or items to a charity for a specific project or longer, more complex arrangements. Corporations too have been drawn to CRM due to the competition of the expanding global marketplace and the need to develop brand loyalty. A number of recent studies have documented that consumers carefully consider a company’s reputation when making purchasing decisions and that a company’s community involvement boosts employee morale and loyalty. CRM has become a controversial topic among grantseekers, as non-profits entering into CRM activities, debate the ethics of lending their name and reputation to corporations. Some of the common criticisms of CRM are that it undermines traditional philanthropy, that non-profits are changing their programs in order to attract CRM dollars and that only well-established, noncontroversial causes can attract CRM dollars. (http://foundationcenter.org/getstarte) According to a report published by Philanthropy, cause-marketing sponsorships by American businesses are rising at a dramatic rate. According to the data collecte in 2005; US$ 1.11 billion was spent in 2005, an estimated US$ 1.34 billion was be spent in 2006, and the number was expected to rise further in 2007. CRM is a powerful marketing tool that businesses and non-profit organisations are increasingly leveraging. According to the Cone Millennial Cause Study in 2006, 89% of Americans (aged 13 to 25) would switch from one brand to another brand of a comparable product (and price) if the latter brand was associated with ‘good cause’. The same study also indicated that a significant percentage surveyed would prefer
to work for a company that was considered socially responsible. This can be linked to the increase in ‘workplace-giving’ programs. Earlier studies by Cone indicate an upward trend in the number of Americans who associate their own buying habits with causemarketing, as well as an expectation that companies should to be good corporate citizens. These studies also show a substantial increase from just before to just after the September 11, 2001 attacks. Numerous other studies have also been conducted to show that Cause-Related Marketing has helped to increase a company’s profits. For example, in the cause marketing campaign initiated by American Express (to which the term “cause-marketing” is attributed), the company saw a 17% increase in new users and a 28% increase in card usage. The possible benefits of cause-marketing for non-profit organisations include an increased ability to promote the non-profit organisation’s cause via the greater financial resources of a business, and an increased ability to reach possible supporters through a company’s customer base. The possible benefits of cause-marketing for business include positive public relations, improved customer relations, and additional marketing opportunities. (http://en.wikipedia.org/ wiki/Cause_marketing) CRM, as is evident, attempts to integrate its activity with the organisation’s business strategy. However, its scope remains essentially in the domain of Public Relations and Marketing Communications. The principal outcome of CRM is the shaping of a favourable image of the company in the eyes of customers and other stakeholders, while improving its profile.
AUTHOR : PROF. UDITHA LIYANAGE - SENIOR MARKETER
Strategic CSR
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t Level 3 of the pyramid as illustrated, Strategic CSR activities are integrated with the company’s business strategy, which goes beyond its Public Relations and Marketing Communications activities. Strategic CSR moves beyond good corporate citizenship or RCC behaviour, as it has an eye on ‘getting something back from what it gives’, in a way that reinforces the strategic position of the corporation in a competitive context. For example, Toyota’s Prius, the hybrid electric / gasoline vehicle, is the first in a series of innovative car models that have produced a competitive advantage and environmental benefits. Hybrid engines emit as little as 10% of the harmful pollutants conventional vehicles produce, while consuming only half as much gas.
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Voted the ‘Car of the Year’ in 2004 by Motor Trend Magazine. The Prius has given Toyota a lead so substantial that Ford and other car companies are licensing the technology (Porter, 2006). Microsoft’s working connections partnership with the American Association of Community Colleges (AACC) is another case in point, as cited by Porter (2006). The shortage of IT workers is a significant constraint on Microsoft’s growth. Microsoft invested US$ 50 million on a five-year initiative to address three key constraints that limited the supply of trained IT graduates into the market. Microsoft helped collages to standardise IT curricula, upgraded the technology used in classrooms and provided systematic professional development programs to keep the faculty up to date.
Figure 2: A Convergence of Interests (Source: Porter and Kramer, 2002) The convergence of interests, between those of society and the corporation, as discussed, occurs at the intersection between the company’s value chain and the society, while developing a competitive context (as in Toyota, and Microsoft cases).
CSR and Rewards Does strategic CSR pay-off in tangible and financial terms?
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t the outset, we defined CSR as “achieving commercial success in ways that honour ethical values, and respect people, communities and the natural environment. For a start, what evidence exists that suggests that honouring ethical values and practices are reflected in responsible Corporate Governance (CG)? In a Harvard Law Review article published in January 2005, Lucian Arye Bebuhuk and others noted that “evidence indicates that the quality of governance arrangements affects firm performance and shareholder value.” Similarly, the article published by Deutsche Bank in April 2004 concluded that “investments in companies with the highest quality of governance structures and behaviours have significantly outperformed those with the weakest governance.” In fact, Deutsche further found that “companies
that have taken action to improve their governance standards have outperformed those that have taken negative actions over the past two years.” The Centre for Business Ethics examined the relationship between business ethics and the bottom line. The study examined this relationship by analysing and reclassifying existing literature and research conducted over the past 25 years. Of the 51 reclassified studies, 33 show a positive relationship between ethics and corporate financial performance. This comprehensive study suggests that companies that follow a code of ethics attract customers who value the reputation of the company as a ‘fair player’ in the market. Moreover, the ‘employer brand’ of such corporations tends to develop in a way that attracts and retains talent, which is the lifeblood of any corporation. What are the pay offs of CSR? Here again, research is clear on the benefits of CSR.
Companies perceived to have a strong CSR commitment often have an increased ability to attract and retain employees (Turban and Greening, 1997), which leads to reduced turnover, recruitment, and training costs. Employees too often evaluate their companies’ CSR performance to determine if their personal values are congruent or conflict with those of their employers. Mangolis and Walsh (2002) examined 122 published studies between CSR and financial performance. Mixed results were found with respect to a short-term financial impact, and the majority of studies showed a positive relationship between CSR and long-term financial performance of the corporation. The findings of the extensive study of Tsoutsoura (2004) indicate that CSR is positively related to better financial performance and this relationship was statistically significant, supporting, the view that socially responsible corporate behaviour can be associated with a series of bottom-line benefits.
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Socially Responsible Business f the CSR activities of a business are the very purpose and the existence of the business, by not just being incidental, but central to it. Then, it is considered that such a corporation is engaged in Socially Responsible Business (SRB).
Figure 3: Contrasting Paradigms Serving the world’s poor, constitutes a vivid example of SRB. A formal definition of SRB that will help better appreciate the difference between strategic CSR and SRB is as follows: The aim of SRB is to profitably serve the socio-economically disadvantaged people, in an environmentally friendly manner, through innovative products and services,
that are financed, sourced, processed, delivered, communicated and priced, while keeping in mind the constraints and limitations of the end beneficiaries. SAB can be contrasted with good Corporate Citizenship (CC) and Cause - Related Marketing / Strategic CSR.
Conclusion
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corporation’s strategy and its adaptation inevitably impacts multiple environments. Formulating a strategy and implementing it with an eye on possible social impacts constitute responsible behaviour on the part of the corporation. The paper discussed four distinct levels of social responsibility. Importantly, strategic CSR attempts to strike a collaborative ‘win – win’ arrangement with the environments in which the corporation operates. The conceptualisation of SRB is debated to be a logical extension of the corporation’s need to be responsible in its behaviour.
The SRB concept is unique, because the very purpose of doing business is inextricably linked to social responsibility, to the extent that it attempts to make CSR become entirely superfluous. Not all businesses and organisations will find SRB attractive and indeed, relevant. But those who do find SRB, as its central, not incidental (though integral) activity, will have the unique satisfaction of ‘doing good’, being the very core and substance of its business; indeed, its very purpose.
Prof. Uditha Liyanage
Senior Marketer A Senior Marketer, Professor of Management at the Postgraduate Institute of Management (PIM) and Adjunct Professor of the University of Canberra, Australia. He is also on the Director Board of several leading companies in Sri Lanka.
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AUTHOR : PROF. UDITHA LIYANAGE - SENIOR MARKETER
Here, the paradigm of ‘giving to get’, as in the case of Cause – Related Marketing and Strategic CSR, is transcended by the paradigm of ‘doing and getting’ - doing business that is socially beneficial which is not merely ‘incidental and integrated’, but the very core of it. Indeed, SRB is largely about creating market space itself. The fact that such business activity helps the organisation to ‘get’ in terms of return on capital employed is not certainly missed. It is very much a part of the business model. Such a business model includes both value chain activity and markets.
SUSTAINABILITY REPORTING PRACTICES Towards Sustainability Reporting Practices in Sri Lanka: Then and Now
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ecent surveys on Corporate Social Responsibility (CSR) of developed countries suggest that the reporting practices of companies have dramatically increased during the last few years in terms of their impact on the physical environment and society. But such reporting practices of developing countries lag behind that of developed countries with a slow growth trend. Therefore, this study involves an evaluation of existing social and environmental reporting practices and its trend on corporate business entities in developing countries, particularly in Sri Lanka. Published annual reports of quoted public companies during the past financial years and the latest annual reports released in 2012/2013 are also reviewed for the comparative study. A recent study has shown that there is a tremendous increase in the trend of CSR practices in Sri Lanka during the last few years. More concern on social responsibility by business organisations have come up with the expansion of industrial activities, since various adverse social and environmen-
tal effects are associated with corporates. Therefore, most entities have understood that the environmental sustainability is a prime business issue. Organisations have recognised the value of social responsibility in addition to their primary object of maximising profit. On the other hand societal concern on environment matters and their level of environmental literacy have dramatically increased particularly during the past two decades. With regard to the environment, there is a ‘social contract’ between the accounting entity and society at large, and stakeholders have the ‘right’ to be informed of the organisations impact on the environment. Therefore, social and environmental reporting may have derived as recognition of those rights and as a form of accountability for corporate entities. However, traditional corporate reporting practices have focused exclusively on providing financial information to stakeholders. But, it is generally accepted that one of the purposes of financial accounting is to report on how managers who are entrusted with the economic resources of an entity have
faired in relation to their stewardship and how much information they release to their stakeholders. Consequently, majority of the world’s largest corporate entities constantly disclose their sustainability processes in the form of periodic corporate social responsibility (CSR) reports or sustainability reports which mainly disclose how corporate entities have contributed to economic, social and environmental development of the country. Their contributions towards ecoefficiency and eco-justice are issued separately from the annual financial reports. However, sustainability reporting practices of developing countries are still lagging behind that of the more developed countries and have a long way to go in order to meet the increasing demand for sustainability information and related international standards. It believed that the lack of adequate resources and qualified personnel have contributed to ad-hoc and patchy sustainability practices in these countries.
AUTHOR : BANDARA RAJAPAKSE - SENIOR LECTURER - UNIVERSITY OF COLOMBO
Genesis of Sustainability Reporting in Sri Lanka - General to Legislative Requirement
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nvironmental concern is not a new concept to Sri Lanka. The lifestyle trends of our ancestors were highly dependent on the environment around them and they took extreme measures to protect and sustain their natural resources, at the village level. A clear example is the water management systems they had installed for paddy cultivation. During the cultivation process, they did not use chemical treatments that damage the environment around them. However, due to the commercialisation of agriculture activities, industrialisation and urbanisa-
tion, serious damages have begun to occur to the physical environment, thus affecting the ecological balance of the country. The government recognised the need to instil regulations to protect the environment by introducing various environmentally friendly Acts. A few of the key regulations being: the Forest Ordinance, the Forest and Wildlife Conservation Ordinance, the Land Ordinance, the Irrigation Ordinance, and the Coastal Zone Conservation Act. Although these Acts / Ordinances have emphasised the significance of environmental protection within their scope, the first environ-
mental management regulations came into existence with the National Environmental Act of No. 47 in 1980. This act has provided many provisions covering the whole aspect of environmental protection within the country. The Central Environmental Authority had been empowered by the Section 15 of this Act to monitor industrial activities of the country. Therefore, an organisation’s actions are bound by the environmental management requirements stated in the above mentioned National Environmental Act of 1980.
How did Sustainability Reporting came into existence in Sri Lanka?
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lthough corporate financial reporting frameworks have been governed by the provisions in the Companies Act No. 07 of 2007, the Sri Lanka Accounting Standards and other best accounting practices, there are no certain provisions for sustainability reporting in Sri Lanka. However, cur-
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rently several corporate entities produce CSR / Sustainability reports in addition to their annual financial reports as a voluntary document. The question is that, though the CSR reporting is not a mandatory requirement, why did Sri Lankan corporate entities produce CSR reporting? Or, how did CSR reporting come into existence in Sri Lanka?
The report should be prepared accordingly, and the main motive behind voluntary disclosures by the corporate sector was to enhance their brand image, and to show their genuine social and environmental concern.
TREND SUSTAINABILITY REPORTING Trend of Sustainability Reporting Practices in Sri Lanka
Table 2 - Summary of CSR disclosures of Listed ‘Top Fifty’ Companies in Sri Lanka - 2001/2002 Annul Reports Review
CSR Disclosures
Banks & Finance
14
08
06
Beverage, Food & Tobacco
11
04
Manufacturing
06
Plantation
Annul Reports Review
CSR Disclosures
Manufacturing
30
07
23
Hotel
20
04
16
Plantation
10
02
08
Banks & Finance
15
06
09
Services
05
02
03
Trading / Commercial
10
03
07
Food & Beverage
10
-
10
Property Development
08
-
08
Pharmaceuticals
05
-
05
Construction
03
-
03
Footwear and Textile
03
-
03
Mining
01
-
01
Total
123
24
99
Sector
Did not Disclose
Table 3 - Summary of CSR Disclosures of Listed Companies in Sri Lanka - 2003/2004 Annul Reports Review
CSR Disclosures
Banks & Finance
14
06
08
07
Beverage, Food & Tobacco
06
03
03
03
03
Manufacturing
30
21
09
05
04
01
Plantation
10
06
04
Diversified
04
04
00
Diversified
06
04
02
Chemical
02
01
01
Chemical
02
01
01
Motors
02
01
01
Motors
02
01
01
Trading
02
01
01
Property Develop.
05
02
03
Hotel / Travel
01
01
00
Hotel / Travel
20
10
10
Construction
01
01
00
Construction
02
01
01
Textile
01
01
00
Textile
01
01
-
Stores / Supplies
01
-
01
Stores / Supplies
02
01
01
Total
50
29
21
Total
100
57
43
Sector
Did not Disclose
Table 1 – Summary of CSR Disclosures of Listed Companies in Sri Lanka - 1999 /2000
Sector
Did not Disclose
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AUTHOR : BANDARA RAJAPAKSE - SENIOR LECTURER - UNIVERSITY OF COLOMBO
A
s previously mentioned, stakeholders and the corporate community concerned over social and environmental issues in Sri Lanka have significantly increased during the last few years. Simultaneously, CSR reporting practices of the corporate sector in Sri Lanka have also seen an increasing trend. Table 1 illustrated below, gives a summary of social and environmental reporting practices of the listed companies in Sri Lanka in the financial year of 1999/2000. Accordingly, 24 out of 123 companies which is around 19% have disclosed/reported their environmental sustainability measures with their published annual reports. In the 2001/2002 financial year (as shown in Table 2), there is a significant improvement in social and environmental reporting in the country. 29 companies out of the ‘Top 50 listed companies’ i.e. 58% published their CSR information together with their annual reports. It shows an increase of 38%, which is a tremendous improvement when compared to the findings in 1999/2000. Furthermore, Table 3 depicts the summarised CSR reporting practices of the 100 listed Sri Lankan companies in the financial year of 2003/2004. Results show that 64% of the organisations have disclosed their social and environmental information to stakeholders through their annual reports. The upward trend of CSR reporting practices in Sri Lanka is highly apparent. Results of table 4 clearly show that a further improvement of CSR reporting practices in Sri Lanka have occurred during the last financial year 2012/2013. Accordingly, about 70% of the corporate entities in the country now produce CSR / Sustainability based reports. This continuous improvement of CSR reporting practices implies to an extent that the CSR concern by the corporate sector is the level of their response to the stakeholders’ expectations on social and environmental protection.
TREND SUSTAINABILITY REPORTING Table 4 - Summary of CSR Disclosures of Listed Companies in Sri Lanka - 2012 / 2013 Annul Reports Review
CSR Disclosures
Banking/Finance/Insurance
61
52
09
Beverage, Food & Tobacco
20
15
05
Manufacturing
36
24
12
Plantation
19
16
03
Diversified
18
12
06
Hotel / Travel
36
29
07
Land / Property
18
09
09
Chemical
10
07
03
Investment Trust
09
02
07
Power and Energy
08
06
02
Services
08
03
05
Trading
08
02
06
Health Care
06
03
03
Motors
06
03
03
Oil Palms
05
02
03
Footwear
04
01
03
Stores / Supplies
04
01
03
Construction
04
03
01
Telecommunication
02
02
00
Information Technology
02
00
02
Textile
01
01
00
Total
284
193
91
AUTHOR : BANDARA RAJAPAKSE - SENIOR LECTURER - UNIVERSITY OF COLOMBO
Sector
Bandara Rajapakse
Did not Disclose
A
lthough there is a significant improvement of CSR reporting in Sri Lanka within the study period, most companies have only produced qualitative information that is favourable to them. None of them reported adverse social and environmental impacts that have occured due to their business operations. However, a few companies have quantified their total investment in CSR activities and cost of environmental protection initiatives such as investment in recycling projects and there results have been quantified in terms of units. For example: the amount of litres of re-cycled water during a certain year. During the initial period of CSR reporting within the country, i.e. The 1999/2000 financial year, many companies have only reported their social and environmental initiatives within the chairman’s report and mission statement respectively. But by the reports released during the 2001/2002 and 2003/2004 financial years, majority of the companies have allocated separate sections to include their CSR activities. In the2012/2013 financial year, many companies have produced separate sections dedicated to their CSR/Sustainability measures, and some of the corporates have even included a separate report along with their annual reports. The reports clearly depicts that many of the leading corporate entities have applied the prescribed Global Reporting Initiatives (GRI) in their sustainability reports, while some of them have applied G3 guidelines - Launched in 2006, the G3 Guidelines feature sustainability disclosures that organisations can adopt flexibly and incrementally, enabling them to be transparent about their performance in key sustainability areas. As there is a growing trend of CSR / Sustainability reporting practices in a global context, the main objectives of the study was to examine the trend of such reporting practices in developing countries, particularly in Sri Lanka. To achieve this objective, financial statements of public listed companies were utilised for review within four financial years from: 1999/2000, 2001/2002, 2003/2004 and 2012/2013. The overall result illustrates that there is a tremendous improvement of CSR / Sustainability reporting practices in Sri Lanka during the last few years. But the negative aspect of the reporting practices is that only qualitative and positive environmental initiatives are disclosed. Therefore, these disclosures are merely self-laudatory information that doesn’t paint the full picture. On the other hand, many entities have also produced unaudited information and the reliability of this information is also quite low. However in conclusion, majority of the reviewed companies in this study have made significant efforts to produce CSR / Sustainability reports. Therefore, it is clearly depicted that there is a growing trend of social and environmental concern by the corporate entities in Sri Lanka.
Senior Lecturer University of Colombo
His main research areas are CSR or Sustainability reporting, corpotate governance and practices. He is a senior lecturer and the Head - Cordinator of the Master of Business Adminstration programmes, at the Department of Accounting, Faculty of Management & Finance, University of Colombo. In his early career, he worked as an Accountant and as a Management Consultant in the corporate sector.
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Sustainability reporting is the medium utilised by organisations to communicate information and policies about their economic, social and environmental engagements.
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