Sustainability Report on Tata Group PDF

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A sustainability review of Tata group companies....

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Sustainability Report On

Ashish V Singh Graduate Business School 2997755

TATA GROUP [Sustainability at Tata Group]

Abstract The report encapsulates the mission and work of Tata group companies in the field of sustainability. The group formulates and mandates sustainability practices across its group companies spread across the globe. Tata companies are one of the most ethical brands to work with who are consistently involved in CSR activities while making their business sustainable.

Keywords: Tata, Tata Group, Sustainability

Introduction

Tata Group is one of the leading global enterprise, headquartered in India. The conglomerate has its business presence from “Steel to Salt”. The group has more than 30 companies across 10 distinct verticals and the group has more than 1000 subsidiaries under its umbrella which directly or indirectly use Tata brand. The group companies operate in more than 100 countries across 6 continents. The mission statement of the group “To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust” Tata companies are promoted by principal investor Tata Sons. 66% of the equity share of Tata sons is held by philanthropic trusts which majorly works in sectors like health, education, arts, culture etc. Some of the notable companies of the group are Tata Motors, TCS, Tata Steel, Tata Chemicals, Tata Global Beverages, Titan, Tata Capital, Tata Power, Indian Hotels and Tata Communications. Tata companies are ordained to be the most trusted brands among the masses. The group has emerged as one of the most ethical & sustainable brands to work with. Not only the employees but customers, suppliers, govt. bodies regard the worth of brand “TATA”.

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TATA GROUP Code of Conduct

Each Tata company operates independently under their own board members and directors, but all are answerable to the parent holder Tata Sons. Every Tata company and its employees are bound by the ubiquitous code of conduct called “Tata Code of Conduct” which encapsulates the guidelines by which the group conduct its business. The scope & purpose of this code is briefed here to understand the core behavior of the companies and how the business is taking consideration of sustainable and ethical practices in dynamic working environment.

[ 1. This Code sets out how we behave with: • our employees, or those who work with us; • our customers; • the communities and the environment in which we operate; • our value-chain partners, including suppliers and service providers, distributors, sales representatives, contractors, channel partners, consultants, intermediaries and agents; • our joint-venture partners or other business associates; • our financial stakeholders; • the governments of the countries in which we operate; and • our group companies……...] Apart from the internal stakeholders the code governs and anticipates that value chain partners should also conduct their operations in a sustainable manner. The core principle’s which govern the code are outlined below: Core values: Integrity Responsibility Excellence Pioneering Unity It is evidently understood from the above charter that Sustainability is in the heart of the organization. All its business processes whether its automobile manufacturing, steel production, tea & coffee harvesting are been laid out taking in thought of sustainability in action.

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TATA GROUP Definition - Sustainability

Before going further with the profile of the organization first we need to address what sustainability means and what role it is playing here. It all started with Burtland commission formed in 1987 by World Commission on Environment and Development (CMMAD) who envisaged the term “Sustainable Development” in their report. As per the report Sustainable Development is a process of transformation in which the exploitation of resources, the direction of investments, the direction of technological development and institutional change harmonize and reinforce the present and future potential, in order to meet human needs and aspirations. In simpler terms it means that earth and its inhabitants have to survive than all human activities comprising of – Social, Economic, and Environmental within these planetary dimensions.(Victoria, 2019)

“Sustainability is about ensuring a decent standard of living for everyone today without compromising the needs of future generations” (U.N., 2016). Tata Sustainability Group

Sustainability plays a very vital role in the philosophy of Tata Group. Industrial empire since its inception in 1850 has always cared and devoted its substantial profit and resources for the development of the society, community they are working in. It is not uncanny to mention here that one of the cities in Eastern India “Jamshedpur” is named after the founder “Jamsetji of Tata group. It is the home of the first private Iron & Steel company of India. Tata Iron & Steel company not only made significant profits here but with its progress the company uplifted the society and economy of the regional area. Schools, education institutions, hospitals are a common phenomenon from Tata Steel & Group here.

“The Tata group believes that the role of business is not just about giving back to society from its profits but also about ensuring that the processes it employs to earn these profits are ethical, socially responsible and environmentally sound.” (Tata releases report on contribution to Sustainable Development Goals, no date) Like Tata Steel other organizations in Tata stable: Tata Motors, Tata Consultancy, Tata Power etc. have their contributions towards society & sustainability process. The individual companies have charted out various indigenous process to make their business and its impact on the society to be very sustainable. To further leverage ahead in the paradigm of being sustainable Tata Group incorporated an entire division of Sustainability called TSG “Tata Sustainability Group”. The Tata Sustainability Group is driven by a mission to guide, support and provide thought leadership to all Tata group companies in embedding sustainability in their business strategies and demonstrating responsibility towards society and the environment. (Tata Sustainability Group, no date)

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TATA GROUP TSG currently leads the three largest execution services of the Tata group - Tata Engage, Disaster Response and Tata STRIVE. TSG plays a crucial role in spreading awareness on climate changes and environmental conservation using various channels like national & international forums which are working towards such goals. TSG works under below segments governing all sustainability pillars. Social:

Economic:

Environmental:

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Human rights

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Recycling

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Carbon footprint

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Ethical sourcing

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Research & Development

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Recycling water

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Gender rights

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Lean business model

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Water purification

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Education

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Value chain sustainability

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Poverty

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Health

Goals of Tata’s corporate communication on sustainability 

Simple and easy for employees to understand

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Flexible for changing and differing definitions of sustainability

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Creates a “roadmap” for employees and stakeholders

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Inspires new thinking for existing businesses and processes

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Articulates Tata’s aspirations for sustainability

Sustainable Innovation

Innovation and design are the means to deliver breakthrough products, services and processes to our customers Innovation centres–Research, Development and Technology business of Tata Steel Europe; Tata Chemicals Innovation Centre; Tata Motors European Technical Centre; TCS Innovation Labs; National Automotive Innovation Centre (at University of Warwick); and Technology Development Centre of Tata group at Bengaluru. Tata companies publish approximately 2000 patents per year Examples of innovation from group companies: •

Food & Wellness –UAV based technology to boost efficiency of water, pesticide and fertilizer use in agriculture

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Energy –cost efficient Fuel Cell Stack for automotive, defence and stationary use cases

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Pedestrian airbags on cars –from Jaguar Land Rover for the increased safety of pedestrians

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TATA GROUP

Commitment to sustainable development and welfare of community in areas like Rural Development, Strengthening Livelihoods, Health and Education. Environment sustainability focus areas are Carbon, Water, Energy, Natural Capital and Circular Economy •

40 group companies undertake sustainability reporting on the frameworks of United Nations Global Compact, Global Reporting Initiative, Carbon Disclosure Project and Business Responsibility Report

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Group level programmes include: volunteering program Tata Engage (1.2 million volunteering hours in FY18)

Active programmes around the world include: •

India: UN award winning program on HIV/AIDS, computer-based adult literacy, elearning teaching application for special children, whale shark conservation

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North America: Partnership with the First Book programme

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UK: Education Business Partnership centres providing learning facilities

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China: Support Operation Smile’s treatment of cleft lip patients

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Africa: Scholarships, skills transfer and training

It’s a prerogative of TSG to opportune the various initiatives taken by individual companies in their quest for sustainability. Let’s observe few case studies on sustainable practices demonstrated by individual organizations under Tata umbrella. Tata Group business cases 1. REALCAR - RECYCLED ALUMINIUM CAR JAGUAR LAND ROVER Recycled Aluminum CAR, launched in 2008 and funded by Innovate UK, sought to create a closed-loop value chain to recycle vehicles at the end of their lifecycles. REALCAR took the post-industrial waste from aluminum body panel stamping and recycled it back to the supplier (Novelis) to be incorporated into new body panels. In REALCAR, waste aluminum from Jaguar Land Rover vehicle production is sold back to the supplier, Novelis (rather than entering the general aluminum recycling system), where the high purity and high-quality Jaguar Land Rover/Novelis alloy would be blended with other, potentially lower purity materials. IMPACT- Recycled tolerant material, Reduced emissions, Retained material quality. 2. PROJECT ELECTRA - POWER FROM TRASH TATA CHEMICALS EUROPE Project Electra aligns Recovery and Recycling as it uses waste material that would otherwise be disposed of in landfills and releases the captured energy to generate electricity and heat energy.

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TATA GROUP The energy from waste facility, termed Lostock SEP (Sustainable Energy Plant) will burn approximately 600,000 tonnes per annum refuse derived fuel to generate electricity and heat energy in the form of steam. IMPACT- Revenue growth from new income stream, Reduction of waste, Reduction in carbon footprint. ‘circular-economy-bro_12.pdf’ (no date). These are 2 of the few examples that variably shows the concern and zeal of the organizations to portray themselves as sustainable. Due to their increased competency in sustainability, TSG has partnerships with global and local forums working on numerous ecological, human, and economic subjects. WORLD ECONOMIC FORUM DNVGL NATURAL CAPITAL COALITION WBCSD ENERGY TRANSITIONS COMMISION CPLC WE MEAN BUSINESS CONFIDERATION OF INDIAN INDUSTRIES FICCI

Vision of the Future - 25 Percent by 2025

Tata Group has demonstrated a commitment to sustainable development for more than a century. Tata Sustainability Group hopes to lead Tata Group to achieve new heights of sustainable development, reaching into all functions of all Tata businesses. “The Tata philosophy of management has always been and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the customers of their products, of the local community and finally of the country as a whole.”

Challenges & Recommendation

 Diverse business nature - Calls for measures in all areas they operate.  Sustainable Business Practices – Tata companies have come into controversies sporadically. Few cases like Nano- Singur plant (WB, India), Tata & Docomo

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TATA GROUP litigation, Tata Steel UK labour pension issues, 2G scandal Radia Tapes among the few cases which questioned ethical practices by the group and its leader.  Global presencea) Dynamic global economy poses threat of revenue fluctuations which can impede contribution to sustainable & community activities. b) Each country they operate have their own social, economic & environmental issues.  Sustainability measurement - Tata council for community initiatives innovated

TATA INDEX to assess sustainability. It’s in evolving status in collaboration with United Nations Development Program. Sustainability measurement is a debatable topic as per World Economic Forum. The question is how relevant and correct Sustainability reporting tools (SRT) are for measurement? Dow Jones Sustainability Indices launched in 1999 in collaboration with RebecoSAM is one of the indices to measure sustainability for the organizations. Tata Steel, Tata Motors, Tata Consultancy Services are few Tata groups companies who are nominated as Industry Leaders by the firm. (Industry Leaders, no date) Recommendations  Simplify Tata’s internal definition of sustainability  Establish a “multi-local” strategy tailored to the unique challenges and opportunities of each country and business

Conclusion

The study probed here of Tata Group companies is just a prevue of the activities that the group companies are currently involved into. Each company under Tata shed has immense knowledge of practices adhering to ethical and sustainable business practices. TSG is facilitating the companies in their sustainable development. However due to their diverse nature and global presence its quite indigenous to think that implementation & measurement of such practices is an arduous task. The organization is itself a big mammoth with thousands of business units and to make each unit sustainable in terms of people, profit and planet is definitely a challenge.

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TATA GROUP References

‘circular-economy-bro_12.pdf’ (no date). Industry Leaders (no date) Pure play asset management | Robeco.com. Available at: https://www.robecosam.com/csa/csa-resources/industry-leaders.html. Tata releases report on contribution to Sustainable Development Goals (no date). Available at: https://www.tata.com/newsroom/tata-group-report-sustainable-development-goals. Tata Sustainability Group (no date). Available at: http://www.tatasustainability.com/aboutTSG.aspx . ‘Tata_Group_presentation.pdf’ (no date). Available at: http://www.tatawestside.com/pdf/Tata_Group_presentation.pdf. ‘THE TATA WAY: EVOLVING AND EXECUTING SUSTAINABLE BUSINESS STRATEGIES •’ (no date). Available at: https://iveybusinessjournal.com/publication/the-tataway-evolving-and-executing-sustainable-business-strategies/ . Victoria, A. (2019) ‘Sustainable development’. doi: 10.13140/rg.2.2.16460.46720.

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