Sustainable Development: An Introduction

Ashutosh Senger Email: [email protected]

Research Associate, The Energy and Resources Institute (TERI)

02 February 2015 International Centre for Environment Audit and Sustainable Development (iCED) Training schedule on ‘National Training Programme on Audit of Waste Management and Water Issues’ (02nd February to 05th February, 2015) LETS TALK

What do you understand by sustainable development? The way we look at the global world? what do we want out of our economy? How should our societies best be organised ? Structure of Session

Part I: Theoretical understanding of sustainable development and related concepts

Part II: Case study  Objective

Sustainable development Genesis – global and local lens

Sustainable development Policy a key to perspective economic growth PART I: THEORETICAL UNDERSTANDING OF SUSTAINABLE DEVELOPMENT Multiple drivers and discussion around SD • Global environment issues – Climate change – Biodiversity loss – Land degradation • Traditional security – Conflicts and wars • Non-traditional security – Energy – Food – Water – Others • Global integration • Inequity – intra-generational inequity – Inter-regional inequity – Inter-generational inequity – The question of fairness • Financial crises Treatises around Economic Growth and Environmental Sustainability

1962 1971 1972 1987 1989 1991

Silent Spring The Entropy Law and the The Limits to Growth Our Common Future Blueprint for a Green Steady State Rachel Carson Economic Process Meadows et al UNWCED Economy Economics Nicholas Georgescu- Pierce et al Herman Daly Roegen Sustainable Development

A timeline Global Policy: Some developments

• The United Nations Open Working Group has proposed seventeen Sustainable Development Goals (SDGs) in the 68th Session of the General Assembly in 2014.

• SDGs are supposed to be action oriented, global in nature and universally applicable to all countries, while taking into account different national realities, capacities and levels of development and respecting national policies and priorities.

http://sustainabledevelopment.un.org/focussdgs.html Global Policy: Some developments

Proposed Sustainable Development Goals by the UN Open Working Group Goal No. Goal name Goal 1 End poverty in all its forms everywhere Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture Goal 3 Ensure healthy lives and promote well-being for all at all ages Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Goal 5 Achieve gender equality and empower all women and girls Goal 6 Ensure availability and sustainable management of water and sanitation for all Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all Promote sustained, inclusive and sustainable economic growth, full and productive employment and Goal 8 decent work for all Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10 Reduce inequality within and among countries Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable Goal 12 Ensure sustainable consumption and production patterns Goal 13 Take urgent action to combat climate change and its impacts Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, Goal 15 combat desertification, and halt and reverse land degradation and halt biodiversity loss Promote peaceful and inclusive societies for sustainable development, provide access to justice for all Goal 16 and build effective, accountable and inclusive institutions at all levels Strengthen the means of implementation and revitalize the global partnership for sustainable Goal 17 development http://sustainabledevelopment.un.org/focussdgs.html

Policy relevance

• The United Nations Conference on Sustainable Development (UNCSD) took place in Rio-de-Janeiro in June 2012 to mark the 20th anniversary of the 1992 United Nations Conference on Environment and Development (UNCED), in Rio de Janeiro, and the 10th anniversary of the 2002 World Summit on Sustainable Development (WSSD) in Johannesburg • The Conference focused on two themes: – Green economy in the context of sustainable development and poverty eradication (GESDPE); and – Institutional framework for sustainable development (IFSD) • Some areas in the outcome document relevant to auditing – Para 47: Companies, especially publicly listed and large companies, to consider integrating sustainability information into their reporting cycle. – Para 62: Governments to improve knowledge and statistical capacity … • Member states recognized sustainable development as a dynamic and continuous process; importance of social, economic and environmental dimensions.

Statistical capacities Reporting Practice? Design for environment

Xerox Corporation’s Asset Recycle Management (ARM) program

Taking back leased copiers Xerox estimates that ARM savings in 1995 alone were worth $300- million to $400-million range from: Remanufacturing • Raw materials process • Labour and • Waste disposal

Reassembled into “new machines”

Source: Harvard Business Review Beyond Greening: Strategies for a Sustainable World by Stuart L. Hart Day to Day Life

Put up eco- Replaced fluorescent signage for lamps with more energy energy saving efficient lamps

Set up recycling Day to Day Life system

Fixed faulting plumbing to stop waste water

Discontinued use of paper napkins in canteen

Pearls of wisdom

1

, Issue Issue ,

1

Green Growth and Development, Development, and GreenGrowth

Source: Volume

Speed is irrelevant if you are going in the wrong direction -- Mahatma Gandhi SUSTAINABLE DEVELOPMENT: DEFINITIONS, VIEWS AND FRAMEWORKS Sustainable Development: Global Genesis (1)

• The term ‘sustainable development’ was coined by the World Commission on Environment and Development (WCED) that was established by UNEP Governing Council in 1983 • “…development policy, in the broadest sense and environmental policy be integrated in a common framework. The concept of 'sustainable development' can provide the basis for such an integration…” (Desai [1986]) Sustainable Development: Global Genesis (2)

DEFINITION Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: – the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and – the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.

(Chapter 2, Our Common Future: Report of the World Commission on Environment and Development, 1987) Sustainable Development: Indian Context

Seventh Five Year Plan (1985-1990) • “If the gains in productivity are to be sustained, resources must also continue to be available over time. This requires that, while providing for current needs, the resources base be managed so as to enable sustainable development.” (Volume 2, Chapter 18) The Constitution of • Article 21 conferring the Right to Life encompasses right to clean environment, right to livelihood, right to live with dignity and a number of other associated rights • The Directive Principles of State Policy often referred to as the ‘conscience’ of the Constitution are intended to ensure ‘distributive justice’ and that political democracy in India is accompanied side by side with social and economic democracy The National Environment Policy • “only such development is sustainable, which respects ecological Questionconstraints to auditors:and the imperatives How do of we social assess justice” social aspects? Components of Sustainable Development: Dominant View Figure Three pillars of sustainable development • Three pillars of sustainable development Sustainable development – Economic – Social – Environmental • Achievements – policy mainstreaming and

consensus building Social

Economic – Responsible corporate

Environmental conduct – Formal and informal institutions working together Governance • Criticisms – Compartmentalized – Leading to Isolated actions? Inspired by Our Common Future, 1987; World Summit, 2005 – An oxymoron? – Fuzziness? Components of Sustainable Development: Emerging View

Figure Interfaces of the components of sustainable development • Also focus on interfaces Institutions around components of sustainable development Social Social • Social ecology (social and Ecology environment) • Green economy (economic and environment) Environment Sustainable Social Equity Development • Social equity (social and economic) Green Economy

Economy

GoI (2010), official submission to UNCSD second preparatory committee meeting, pg 30 Institutions and stakeholders

Source: MoEF-TERI (2011)

• Major Groups • Governments • International community PRINCIPLES AND FRAMEWORKS Some relevant sustainability principles • Rio principles (27; International policy) • Agenda 21 and JPOI • The precautionary principle (General) • United Nations Global Compact (Corporate) • Other – The triple bottom line (abbreviated as TBL or 3BL, and also known as people, planet, profit or the three pillars (Corporate) – The Equator Principles (EPs) (Banking) – The precautionary principle (General) – Biomimicry (Design and architecture) – Factor 4 and Factor 10 (General) – EU Eco-Management and Audit Scheme (EMAS) Latest developments in international policy around SD • “The Future We Want” Outcome Document of Rio+20 • Strengthening of reporting and statistical systems • Sustainability reporting by companies • New “green” concepts such Green Economy and related terms – Green growth is about maximizing economic growth and development while avoiding unsustainable pressure on the quality and quantity of natural assets. It is also about harnessing the growth potential that arises from transiting towards a green economy (OECD, 2011). – Green growth involves rethinking growth strategies with regard to their impact on environmental sustainability and the environmental resources available to poor and vulnerable groups (Para 3.15, TFC 2009, Government of India).

Importance of social aspects/ inclusiveness along with green/environmental aspects Framework for Sustainable Development Indicators

revised edition contains 96 indicators, including a subset of 50 core indicators http://www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets.pdf Social

Theme Sub-theme Indicator Equity Poverty Percent of population living below poverty line Gini index of income inequality Unemployment rate Gender equality Ratio of average female wage to male wage

Nutritional status Nutritional status of children Mortality Mortality rate under 5 years old Infant mortality rate Life expectancy at birth Health Sanitation Percent of population with adequate sewage disposal facilities Drinking water Population with access to safe drinking water Percent of population with access to primary health care facilities Healthcare delivery Immunization against infectious childhood diseases Contraceptive prevalence rate Education Education level Children reaching grade 5 of primary education Adult secondary education achievement level Economic

Theme Sub-theme Indicator Economic performance per capita Investment share in Trade Balance of trade in goods and Economic services structure Debt to GNP ratio Total ODA given or received as Financial status a percent of GNP Fiscal Deficit Intensity of material use Annual energy consumption Material consumption per capita Share of consumption of renewable energy resources Consumption and production Energy use per unit of patterns Energy use per unit of by Energy use sector Intensity of energy use: Transportation Energy Imports Environmental

Theme Sub-theme Indicator Atmosphere Climate change Emissions of greenhouse gases Ozone layer depletion Consumption of ozone depleting substances

Air quality Ambient concentration of air pollutants in urban areas

Arable and permanent crop land area Per hectare food grain production Land Agriculture Percentage of gross cropped area irrigated

Use of fertilizers Institutional

Theme Sub-theme Indicator Policy Strategic implementation of National sustainable framework SD development strategy

International cooperation Implementation of ratified global agreements Science and technology Expenditure on research and development as a percent of Innovation and resilience Disaster preparedness and Economic and human loss response due to natural disasters Communication Main telephone lines per Infrastructure 1000 inhabitants Access Information Access Number of internet subscribers per 1000 inhabitants Eco-Management and Audit Scheme (EMAS): Some indicators

Sony’s very expensive Christmas

Weeks before 2001 Christmas, Dutch Government blocked entire European shipment of Sony’s Playstation game system – 1.3 million boxes

This was not a war or embargo against violent video games

Small, but legally unacceptable, amount of cadmium in the cables of the game controls

Steps taken by Sony • Replaced all the cables • Tracked down the source of problem – 6,000 factories • Created new supplier management system

Total “little” environment problem cost to Sony - $ 130 million

Source: Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage Three lessons

•Even the best companies can be surprised by environmental issues •Environment is not a fringe issue- it can cost business real money •Real benefits can come from seeing things in a new light BP and “Looking for Carbon”

Initial cost of change was $20 Discovered million, BP saved numerous ways to over $650 million cut emissions, for few years and improve BP committed to as of 2006, efficiency, and savings topped reducing its save money emission $1.5 billion Units were asked to find ways to reduce less of Source: Green to Gold: How Smart Companies emissions Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage • BP and SONY knew business world and natural world are inextricably linked • Our economy and society depend on natural resources. • Environment provides critical support to our economic system. • The evidence is that we are systemetically undermining our natural capital –our asset base and weakening our vital support system. Alcoa Safety

1987, Paul O'Neill gave his first speech as CEO of Alcoa, the aluminium manufacturing giant. "I want to talk to you about worker safety," he began. The room went silent.

"Every year, numerous Alcoa workers are injured so badly that they miss a day of work,“ intended to go for zero injuries. Investors went crazy, ordered selling their stocks immediately to their clients

Alcoa dropped from 1.86 lost work days to injury per 100 workers to 0.2. By 2012, the rate had fallen to 0.125. One year after O'Neill's speech, the company's profits hit a record high.

"I knew I had to transform Alcoa. But you can't order people to change. So I decided I was going to start by focusing on one thing. If I could start disrupting the habits around one thing, it would spread throughout the entire company.“ It turns out that focusing on one, highly routines - and the bottom line. impactful habit can improve several

Source: How Changing One Habit Quintupled Alcoa's Income, Business Insider Life Cycle Assessment

• Aims to consider all processes from “cradle to grave” • Need data for each stage of life cycle – Energy – Materials – Emissions • Popular and standardized Environment

Extraction & Processing

Energy Production Emission

Use

Waste Material Reuse or recycle

Disposal

Waste Emission The Life Cycle of a Product

RecycledExtract material Natural resources Transport Manufacture Transport Sell Products Use Products Dispose of Products Reduce Reuse Recycle If we PRACTICE THE 3Rs it significantly reduces the need to extract virgin sources. The 3 R’s have a positive impact on the environment

1 recycled tin can would save enough energy to power a television for 3 hours.

70% less energy is required to recycle paper compared with making it from raw materials.

Recycling every ton of aluminium can save 5-8 tons of bauxite, 4 tons of chemicals and 14k KWH

1 recycled glass bottle would save enough energy to power a computer for 25 minutes. Life Cycle Approaches – example of paper bag

PART II: CASE STUDY

The motivation to host mega-events is Event-Greening has two key dimensions : based on at least two factors : • The mitigation of the direct environmental • “A successful hosting offers global impact, or ‘footprint’, of the event exposure, prestige and legitimacy to the (including the carbon dioxide emissions, as host city and the entire country, which is well as waste created, water and energy especially desired by emerging economies used, biodiversity threatened, etc.) and eager to prove that they have become • The potential of the event to catalyse a major players on the global stage and broader societal, political and economic • Secondly, hosting a mega-event rests on shift towards more sustainable lifestyles and the promise of an economic windfall production patterns, and to leave a coupled with a substantial urban positive legacy. makeover”. Project on mega-events and sustainable development in developing countries: India, Brazil and South Africa

• Project conducted by TERI in partnership with SEA (South Africa) and GiTEC (Brazil); supported by Konrad Adenaur Stiftung (KAS) • Common framework by three partner research organization • Broad framework(SD) – Economic (including fiscal) – Social – Environmental – Institutional

The XIX 2010 in represented the largest sporting event held in India after the 1982 Asian Games. Introduction

• Hosting of mega-events has a tremendous effect on developing and emerging countries. • Positive - economic investment, job creation, skills development and international branding • Negative - environmental footprint, for example via carbon emissions Potential for mega-events to contribute to sustainability, including socio-economic development and long-term environmentally sound practices

An important question • How such a mega-event, in particular the expenditure and investments that come with it, will benefit the poor. • While this aspect might not be as relevant in a developed country context, it is crucial in a developing one. CWG Games in 2010

• The XIX Commonwealth Games 2010 in Delhi represented the largest sporting event held in India after the 1982 Asian Games. • More than 8000 athletes and team officials from 71 teams participated in the event. • A vision of ‘Green Games’ - main focus was to reduce the carbon footprint and set a benchmark for the games in the future. Business Model of 2010 CWG

• Budget rose from USD265 million in May 2003 bid to USD 4.1 billion (Source: CAG 2011) • The Organizing Committee had 34 departments • Investment by other agencies like Delhi Metro Expenditure by activity for CWG 2010 Rail Corporation and Airport Authority of India (in USD millions) • Expenditure on sports infrastructure and city infrastructure were intended for long-term city benefits, i.e., ‘legacy’ related activities Profile of Delhi

• Delhi is the national capital and is situated next to the Yamuna River. • Mega-city with population of 16.7 million (MoHA 2011) • Fast growing economy that has grown at a CAGR of 9.8% in the period 2000-2010. • Contributes to 3.5% and 1.2% to the national GDP and population (GoNCTD 2010) Socio-economic challenges in Delhi

• About 16% of the urban poor households have no access to piped water supply. • According to the “State of Urban Health in Delhi Report”, infant mortality rate among the urban poor in Delhi stands at 94.4 per thousand live births compared to an average of 46 for urban Delhi (MoHFW-UHRC 2007). • Particulate matter concentrations and Nox level have been higher than the national standards (GoNCTD 2010). • Environment, Health and waste management (MSW projected to increase from 7410 metric tonnes per day to 14300 by 2021 Economic impacts

• 2.47 million employment opportunities(PTI 2010) • Delhi economy witnessing a growth rateTourists of approximately arrivals in Delhi in 9October% in the(2005 -2010) period 2000-2009 • real estate and construction, has received a major boost during the same period, registering a growth of about 9.56%. Greening Games

Strategic Framework was developed with 8 modules • Green Games Vision • Mission and Goals • Green Infrastructure • Green Ceremonies • Green Hospitality • Eco Procurement • Green Sensitization • Greening and Offset • Sustainable Reporting and Sustainability Indicators

Cleaner Delhi Campaign Go Green Location of Pan India Plantation Offset – Plantation Land-use and sustainability

• Delhi and changing land- use and land cover (LULC) dynamics • Development of urban agglomerations Expansion of built-up area in Delhi

Source: Sudhira, HS (2011) Case of Games Village on Yamuna river banks

• Residential complex for athletes to be developed on land in Yamuna river banks. • Games Village was developed on an area of 59.28 hectares on the banks of river Yamuna. • The first step towards regularization of the site for development of the Games Village was in the form of ‘change of land use’ of the earmarked area. • According to public notification in 2006, the land use of area measuring 42.5 hectares (105.0 acres) was sought to be changed from ‘agricultural and water body’ to ‘public and semi-public facilities’. • Further, the land use of an area of 16.5 hectares was changed to ‘Residential’ for 11 hectares and 5.5 hectares to ‘Commercial/ Hotel’. Picture of site

Common Wealth Village (2011) Civil society voices

Source: TERI study

Comptroller and Auditor General key reports • July 2009 • August 2011 Land-use: Case of CWG village on Yamuna floodplain

CWG Village area Oct., 2000

Water Dense vegetation Scattered vegetation/agriculture Sparse vegetation Open area Mixed Built-up area 3 km Source: TERI study Land-use: Case of CWG village on Yamuna floodplain

CWG Village area Oct., 2010

Water Dense vegetation Scattered vegetation/agriculture Sparse vegetation Open area Mixed Built-up area 3 km Source: TERI study Concerns raised

• Water table changes and poor drainage • Lack of compliance to Supreme Court condition that expert committee monitor the CWG village construction • Civil society was not empowered to influence the policy matters Pictures of site

Source: TERI study CWG Village area in Feb 2001 and Nov 2010

Source: TERI study (based on satellite imagery available with google) Social Impacts

44 JJ clusters relocated under Rajiv Ratna Awas Yojna – centrally sponsored government 50,000 four-storey houses were to be constructed but only 13,000 houses were actually constructed Areas identified for relocation – lack basic amenities

Slum and Jhuggi Jhopadi Department under MCD not as effective as DDA (major land owningOverview agency) of Key displacements reported during the course of the 2010 CWG

In case of land as social issues •Institutional factors and legal status had significant effect Institutional factors are important and indicative of inadequate involvement by the institutes at different level Some observations: Agenda 21 framework

Agenda 21 programme areas Delhi experience Adequate shelter DDA , SJJD (MCD) and slum rehabilitation activities? improving human settlement management Funds under JNNURM could have been better utilized towards improving settlements Sustainable land-use planning and Ecology and case of Yamuna banks management Integrated provision of environmental Funds under JNNURM could have been infrastructure: water, sanitation, drainage and utilized towards improving settlements solid-waste management Sustainable energy and transport systems in Major long-term boost to East Delhi human settlements Human settlement and disaster management CWG village quake faultline that runs along riverbed

Sustainable construction industry Green buildings and awareness Human resource development and capacity- Not much allocated to MCD and NDMC; which building in turn could have led to better rehabilitation activities Findings of the 2011 Comptroller and Auditor General’s Report • 2003-2010 (7 year window) could have been wisely used • Mentions environmental clearances and monitoring by expert committees • Risk mitigative and abatement measures identified by were: – Raising and strengthening embankments. – Strengthening existing embankments – one layers of stone and nets to protect bunds and bridges. – protection of existing bridges – arrangements to protect flooding area due to back flow of water • The developers took action only on one aspect viz. strengthening of Akshardham bund. Case study discussion

• Governments are responsive to civil society and knowledge communities • Only ex-post? • Could measures be taken ex-ante? • Social issues?

Extra reading material

Proposed Goals and Targets on Sustainable Development for the Post2015 Development Agenda http://sustainabledevelopment.un.org/focussdgs.html Key challenges in the host cities

!nclusive growth Image Source: Asian Development Bank Development Asian Source: Image

Lets us have a society that reflects on the social, economic and environmental conditions THANK-YOU 