1. Tata Group Sustainability Strategy
Mathew Ashley
Bill O’Brien
Rachel Reiter
Kevin Richards

2. Executive Summary Goal Recommendations
Develop a ten year strategy to continue Tata’s profitable growth and sustainability leadership while addressing:
Tata’s growing global presence
Evolving definitions of sustainability
Increasing demand for measurement and transparency
Recommendations
Simplify Tata’s internal definition of sustainability and articulate it through a credo
Create a separate subsidiary to coordinate, communicate, and expand sustainability efforts across every business unit
Establish a “multi-local” strategy tailored to the unique challenges and opportunities of each country and business
Executive Summary

3. Current Situation Many independent initiatives and organizations
TCCI
Innometer
Annual Management Workouts
Tata Trusts
Tata Power
Indian Hotels
As Tata grows globally, how can the company preserve its unique tension between profit and purpose to meet evolving definitions of sustainability?
Tata Motors
Tata Chemicals
TQMS
Tata Relief Committee
Tata International
Tata Index for Sustainable Human Development
Innoverse
Tata Tea
Tata Consulting Services
Tata Protocol for Internal Assessment
Tata Steel
CSR silos are usually the norm
Steel
TeleCom
Tea
International
Consulting
Hotels
Motors
Power
Chemicals
Ongoing community service
Community literacy
Tetley Tea Rainforest Certification
Employee generation
Community literacy
EARTH Project
Tata Nano
Combat Climate Change (3C’s)
Innovation Center
CII Energy Mgmt Award
Animal husbandry
IIP Certification
Carbon mapping
Health & wellness
Green Globe collaboration
Recycling program
Ethical Tea Partnership (ETP)
Sustainability council
Community development
Tata Swach (H20 purifier)
EMS standards
Tata Swach (H20 purifier)
Imported Coal
The status quo has risks
Future funding is loosely defined
Employee standards inequity
Measurement and transparency
Inadequate stakeholder communication
Role clarity
Overlapping efforts

4. Sustainability Definition & Credo
Goals of Tata’s corporate communication on sustainability
Simple and easy for employees to understand
Flexible for changing and differing definitions of sustainability
Creates a “roadmap” for employees and stakeholders
Inspires new thinking for existing businesses and processes
Articulates Tata’s aspirations for sustainability
Sustainability Definition & Credo
Sustainability Definition
“Corporate Sustainability is a local, national, and global endeavor for creating long-term economic, social, and financial growth for the enterprise and its stakeholders.”
“Corporate Sustainability (CS) is integral to value-creation in our business through the enhancement of human, natural, and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice.”
The Tata Credo
Everything we do within Tata can be re-examined through a sustainability lens.
Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame.
Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization.
Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business.
Everything we do within Tata can be re-examined through a sustainability lens.
Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame.
3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization.
4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
5) Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business.
All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders.
Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas.
Sustainable thinking and implementation is a key skill that every future Tata manager should possess.
Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.
All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders.
Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas.
Sustainable thinking and implementation is a key skill that every future Tata manager should possess.
Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.

5. TSS Value Creation

6. Organizational Chart Breakouts

7. Organizational Chart Breakouts
Create New Markets
Internal Consultants: Facilitation & subject matter expertise
Innovation Center: Creates new products or new markets for existing products
Financial Planning: Funding, budgeting, agreement with shareholders
Internal Audit: EVA in collaboration with TQMS
Climate Change Task Force: Internal conservation across all business units

8. Organizational Chart Breakouts
Build Intellectual Capital
Management Training: Rotations & development
Climate Change Task Force: Grow environmental CSR
Innovation Center: Improving business practices

9. Organizational Chart Breakouts
Monetize CSR Knowledge
Financial Planning: External fundraising
External Audit/Measurement: Outside credibility
External Consultants

10. Organizational Chart Breakouts
Strengthen Brand
Communications: Publicize CSR efforts in receptive markets
Trust/Endowments: Protect & grow company culture of philanthropy
External Audit & Measurement: Company-wide CSR report

11. Organizational Chart Breakouts
Attract & Retain Talent
Trust/Endowments: Protect & grow company culture of philanthropy
Management Training: Rotations & development
Communications: Employee engagement
Financial Planning: Employee incentives
Innovation Center: Improving business practices

12. If managed properly, TSS can address and overcome traditional barriers to implementation and common CSR challenges.
Implementation
Make TSS part of BU strategic plan & operating review
Incentivize BU managers
A silo mentality develops (Robert Sutton)
Project prioritization committee
Budgeting process
TSS is under-resourced & overcommitted
Management rotations
HR training/retraining
Recognize & reward success
Hiding place for ineffective managers
Continue to support innovation from “ground up”, everyone part of success
Corporate culture diluted

13. Challenge & Opportunity Sri Lanka, Thailand, Vietnam
Growth opportunities should fit Tata’s values while staying sensitive to economic, environmental, and social considerations in local communities.
Multi-Local Strategy
Tata Values
Country
Challenge & Opportunity
Carbon footprint
Recycling
Water purification
Ethical sourcing
Unites States
Education, Regulations, Green investments
China
Gov., Pollution, Human Rights, Economy EU
Safety nets, Green Movement
Brazil
Deforestation, Natural resources
Human rights
Gender rights
Education
Literacy
Health, HIV/AIDs
Fair wages
Canada
Safety nets, Green Movement
Gulf CC
Oil rich, Cultural views, Gender roles
South Africa
HIV/AIDS, Developing economy
Sri Lanka, Thailand, Vietnam
Developing economy, Government stability, wages

14. Multi-Local Implementation TSS Facilitation of Initiative
END OF LIFE VEHICLES (ELV) PROJECT
Initiative Example
ELV processing is already mandatory in the EU
By combining expertise across businesses, Tata can create an ELV initiative in the EU and new markets
The estimated value of an ELV-processed vehicle is $267, which could be split between Tata and the customer
Multi-Local Implementation
Tata Credo Alignment
1) Everything we do within Tata can be re-examined through a sustainability lens.
3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization.
4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
7) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas.
TSS Facilitation of Initiative
Leverage business knowledge in target markets
Measure returns and costs across all businesses
Coordinate business unit interactions
Communication and marketing to promote initiative
Secure NGO support
Steel
International
Motors
Power
Chemicals
Tata ELV Services

15. Multi-Local Implementation TSS Facilitation of Initiative
CSR SOFTWARE CONSULTING
Initiative Example
Leveraging Tata’s CSR core competency into a sustainability software consulting practice
Developing Tata Consulting Services group specializing in Enterprise Carbon Accounting (ECA) software
Test and develop new market for “human” sustainability software
Future value creation through external CSR consulting beyond software
Multi-Local Implementation
Tata Credo Alignment
5) Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business.
All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders.
Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
10) Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.
TSS Facilitation of Initiative
Finance and audit function provides measurement and transparency
Develop “human” software in Innovation Center and through inter-company collaboration
Climate change group leveraged for CO2 tracking software
Seek out potential clients across existing business
Consulting
Steel
Power
Telecom
International
Tata CSR Consulting

16. External Risks ü External Risk Credo TSS Multi-Local Strategy
If implemented correctly, our recommendations can create value by anticipating outside change and giving Tata the structure and capability to continue profitable sustainability.
External Risk
Credo
TSS
Multi-Local Strategy
Continued Global Recession ü
Market Indifference
Stakeholder Obstructions
Evolving Definition of Sustainability

17. Timeline & Action Plan Costs and Returns Next Steps
Initial investment for TSS and initiatives: $52M
TSS assumed to have up to 500 headcount
Total Tata 2009 investment in social initiatives: $159M (Graham, “Too Good To Fail”, 2010)
Additional expenditures of $20M - $60M per year as staged initiatives roll out
Minimum 10% return projected if Tata brand value increases by $4M per year
Next Steps
Discuss TSS idea with key leaders
Begin work on standards for employee equality across countries
Investigate initiative feasibility
Investigate legal/tax/reporting implications of subsidiary
If preliminary feedback is positive, hold an offsite leadership meeting to finalize credo, TSS plans, budget, and communication strategy.

18. Questions? Thank you

19. TSS Facilitation of Initiative Tata Energy Efficiency Initiatives
Initiative Example
Tata Steel leads group on energy efficiency programs and has several innovative pilot programs
Reduce its carbon footprint in existing and new markets
Projected to save $3.1 million in fuel costs, savings from other energy programs $17.9 million with initial roll out in India, EU, China and expanding to other markets
Tata Credo Alignment
1) Everything we do within Tata can be re-examined through a sustainability lens.
2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame.
4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
6) All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders.
9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices
TSS Facilitation of Initiative
Leverage business knowledge in target markets
Measure savings and costs across all businesses
Coordinate business unit knowledge sharing
Communication and marketing to promote initiatives
Ensure alignment with Climate Protocol
Secure NGO support
Steel
International
Motors
Power
Tea
Tata Energy Efficiency Initiatives

20. TSS Facilitation of Initiative
COMBATTING CLIMATE CHANGE (3C’s)
Initiative Example
Diversify energy mix and develop strategies to meet the expanding demand for power over the next ten years
Work with government stakeholders to develop alternative energy technology
Carbon footprint reduction opportunities through the use of nuclear, wind, solar and hydro
Tata Credo Alignment
1) Everything we do within Tata can be re-examined through a sustainability lens.
Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
10) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
TSS Facilitation of Initiative
Integrate Power Sustainability Council into TSS
Measure returns and costs across all businesses
Coordinate business unit interactions
Communication and marketing to promote initiative
Secure governmental support
Steel
Consulting
Motors
Power
Chemicals
Tata Power Initiative

21. TSS Facilitation of Initiative
STRATEGIC REORGANIZATION FOR TEA GROUP
Initiative Example
Transparent reporting of ethical sourcing through the Rainforest Alliance Certification (RAC) in Western European and North American
Renewable packaging through Life-Cycle Analysis
Fair Trade certified products and standards
Tata Credo Alignment
2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame.
Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
9) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas.
TSS Facilitation of Initiative
Integrate Tetley sustainability initiatives throughout Tea Group
Measure returns and costs across all businesses
Coordinate business unit interactions
Communication and marketing to promote initiative
Share Tata Chemical competency in sourcing , packaging, and distribution to Tata Tea
- Rainforest Alliance provides ethical sourcing
- ETP is a non-commercial alliance of over 20 international tea packers who share a vision for a thriving tea industry that is socially just and environmentally sustainable
Tea
International
Power
Chemicals
Tata Tea Group

22. TSS Facilitation of Initiative Tata Chemical Initiative
TATA “GREEN CHEMISTRY” INITIATIVE
Initiative Example
Flue gas treatment, carbon absorption and nano glass coating for insulation
Entered into the bio-fuels market in 2007
Fresh produce sourcing, packaging, and distribution
Innovation Center
Center for Agriculture and Technology
Tata Credo Alignment
1) Everything we do within Tata can be re-examined through a sustainability lens.
3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization.
4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
7) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas.
TSS Facilitation of Initiative
Integrate Innovation Center into TSS
Measure returns and costs across all businesses
Coordinate business unit interactions
Communication and marketing to promote initiative
Share competency in sourcing , packaging, and distribution to Tata Tea
Steel
International
Tea
Power
Chemicals
Tata Chemical Initiative

23. TSS Facilitation of Initiative Tata Hotel Conservation Initiative
Initiative Example
Indian hotels is pursuing an internal project known as EARTH
There are best practices from other hotel chains and Tata companies that can be leveraged for near-term immediate savings
Long term goal should be LEED certification for new hotels
Total annual savings/profit for 8 targeted hotels = $1M
Tata Credo Alignment
Everything we do within Tata can be re-examined through a sustainability lens.
Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame.
4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company.
Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business.
9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices.
TSS Facilitation of Initiative
Work with other Tata companies to discover conservation best practices
Set up conservation measurement system for hotels
Communication strategy for hotel customers to get help with conservation efforts
Leverage Climate Change task force
Tea
Consulting
Hotels
Power
Tata Hotel Conservation Initiative

24. FINANCIAL VALUATION

25. FINANCIAL VALUATION

26. FINANCIAL VALUATION

27. FINANCIAL VALUATION

28. DECISION ANALYSIS MATRIX

29. DECISION ANALYSIS MATRIX

30. Current Organizational Chart

31. TQMS Innovation Matrix

32. TQMS Communication Structure

33. TQMS Collaborative Research

34. TQMS Facilities for Learning

35. Time, Difficulty, Impact, & Risk