CSR spend by NSE-listed companies up by 11% in 2017-18

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December 6, 2018

The Corporate Social Responsibility spend by NSE-listed companies crossed INR 10,000 crore, witnessing an increase of 11% in 2017/18. This analysis, based on 1,080 companies, was released by nseinfobase.com, which is developed and powered by PRIME Database Group, The CSR Journal reports.

The average net profit of these 1,080 companies over last three years was Rs 5.35 lakh crore. As per CSR requirements, the amount required to be spent by them was Rs 10,686 crore. These companies, however, decided to spend a bit more at Rs 10,886 crore — Rs 200 crore more than the requirement. However, INR 1,717 crore eventually remained unspent. The final actual CSR expenditure by these companies, though, was INR 10,030 crore, primarily because some companies spent more than what was mandated or decided earlier by them, representing an increase of nearly 11%

With increased participation, the number of companies which spent on CSR went up to 1,016 (94% of the 1080 companies) in 2017/18 from 931 (92%) in 2016/17. The balance 64 companies, despite being mandated, did not spend anything.

The CSR expenditure by companies listed at NSE has grown at a compounded annual growth rate of 16% over the last 4 years.

In line with the previous year, education received the maximum spend followed by healthcare. Areas such as reducing inequalities, national heritage, armed forces, sports, technology incubators and slum development saw negligible spends.

The top 10 companies together spent 36.06 per cent of the total spend on CSR

The top 10 states accounted for 48 per cent of the total CSR spend

Around 27% of the companies spent only directly on CSR-related activities, 25% only used an external Implementing Agency while 38% used a combination of the two. The balance 10% did not specify the route chosen by them.

Source: NSE Infobase

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FIFA Wants Iran to Lift Its Ban on Women in Stadiums

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The CSR Journal

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December 6, 2018

World football’s governing body FIFA said it would work with Iran to end a long-running ban on women attending matches but offered no insight on when to expect the breakthrough.

FIFA Secretary General Fatma Samoura made the announcement after she met Maryam Qashqaei Shojaei, a prominent Iranian campaigner who made headlines at this summer’s World Cup with her #NoBan4Women sign protesting the men-only stadium rule.

Iran has long barred women from attending male soccer matches and other sports fixtures, partly to protect them from hearing fans swear.

Iranian officials could not be reached for comment. FIFA President Gianni Infantino said in May that Iranian President Hassan Rouhani had told him there were plans to allow women to attend matches soon.

The Equality League, which campaigns against sexism in sport, used Twitter to call on FIFA for firm dates for a breakthrough, asking: “What is your timeline to help secure stadium access for all?”

Shojaei called it a step in the right direction. “I am so optimistic that they take steps to allow all women into the stadiums,” she told the Thomson Reuters Foundation from FIFA’s home town of Zurich, where she presented Samoura with her online petition signed by 200,000 people. “This meeting shows that our request has been heard – now it’s FIFA’s turn to follow its principles and ask Iran to lift this ban.”

Iranian women were allowed to watch a World Cup match on a big screen in Tehran’s Azadi stadium in June, and last month dozens of women watched their national team play Bolivia, according to advocacy group, Center for Human Rights in Iran.

In April, female football fans donned fake beards and wigs to attend a major game in Azadi Stadium.

Source: Global Citizen

India’s first Carbon Neutral manufacturing plant in Igatpuri

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Kasmin Fernandes

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December 6, 2018

While the international COP24 conference continues, there is another piece of good news on climate change action from a corporate house in India.

The Mahindra Group took a big step forward in its commitment to becoming Carbon Neutral by 2040, with its Igatpuri manufacturing plant recently becoming India’s first Carbon Neutral manufacturing facility. This was certified by Bureau Veritas (India) Pvt. Ltd. a global leader in Testing, Inspection and Certification (TIC).

Vijay Kalra CEO – Mahindra Vehicle Manufacturers Ltd. & Chief Manufacturing Operations at Mahindra and Mahindra Limited, said, “This is the first plant within the Mahindra Group to be certified as carbon neutral. We have been able to achieve this through energy efficiency, a sharp focus on the use of renewable energy and the planting of trees to absorb residual carbon.”

Mahindra & Mahindra was the first company in the world to commit to doubling its energy productivity by 2030, signing on to The Climate Group’s EP100 program, reports liveMint. Using energy efficient lighting, efficient heating, ventilation, and air conditioning (HVAC), motors and heat recovery projects, M&M has doubled the energy productivity of its automotive business almost 12 years ahead of schedule.

Of the achievement Anirban Ghosh, Chief Sustainability Officer, Mahindra Group and a columnist with The CSR Journal added, “Through the work we are doing on carbon neutrality we are not only responding on the climate change challenge but our work also results in improved efficiency, innovation and more importantly delivers on the business case for sustainability.”indra

Mahindra was also the first Indian company to announce its internal Carbon Price of $10 per ton of carbon emitted to fund investments required to pursue the path of carbon neutrality. The price was carefully arrived at based on international benchmarks and an assessment of what was required to achieve the goals set by the business on energy efficiency and renewable energy.

The company has over 10 years of experience in creating carbon sinks which has helped it to achieve this goal. M&M will be working on its carbon neutrality commitment with the international non-profit organization Environmental Defense Fund (EDF), which works with leading companies to raise the bar for corporate sustainability leadership. It will continue to work with EDF and other leading partners as it implements actions towards achieving carbon neutrality.

M&M is also a signatory of the Science Based Targets initiative which provides companies with a clear pathway for reducing emissions in line with the Paris Agreement’s goal of limiting global warming to well below 2°C above pre-industrial levels.

All these commitments are helping the company on its path toward carbon neutrality.

This article is part of a series on climate change action in view of COP24.

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5th Edition of India Economic Conclave – Dec 12-13

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The CSR Journal

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December 6, 2018

Times Network announces the 5th edition of its annual signature event, India Economic Conclave 2018. Driving this edition’s theme, ‘Shaping India’s $5 Trillion growth agenda’, the two-day conclave will engage, enable and encourage global voices with India perspective through discourses with global visionaries, key policymakers and iconic leaders.

With a focus to enable the rapid transformation of India to a global powerhouse, India Economic Conclave 2018 aims to set the tone for constructive dialogues and discussions on the critical points concerning the economy. The event will share the vision and actionable insights to further unleash the true potential of India Inc.

Present at the event will be Arun Jaitley, Minister of Finance and Corporate Affairs, Piyush Goyal, Minister of Railways & Coal, Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Skill Development & Entrepreneurship, Devendra Fadnavis, Chief Minister – Maharashtra, Trivendra Singh Rawat, Chief Minister – Uttarakhand, Amitabh Kant, CEO – NITI Ayog, Sadhguru, Founder – Isha Foundation, Rajesh Gopinathan, CEO & MD – Tata Consultancy Services, Keki Mistry, Vice Chairman & CEO – HDFC Ltd., David Hanson, Founder & CEO – Hanson Robotics, Arianna Huffington, Founder – Thrive Global, Dr. Mark Mobius, Founder – Mobius Capital Partners LLP, Ralph Simon, Founder & Chairman – Mobilium Global and Bollywood actor Ranveer Singh.

The conclave will provide a platform to initiate dialogues on the future of new India and give shape to its $5 trillion agenda, with a focus on the benefits to the common man from rising India. The signature event aimed at anticipating, formulating and executing strategies, will witness a series of power packed sessions, which will address issues pivotal to the greater economic growth of the nation.

To register for the event, please log onto www.indiaeconomicconclave.com

The 5th India Economic Conclave 2018 will air on ET NOW

COP24: India calls for funds from rich to developing countries to fight climate change

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The CSR Journal

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December 5, 2018

COP24 — Prime Minister Narendra Modi and UN chief Antonio Guterres held discussions about climate change

Prime Minister Narendra Modi and UN chief Antonio Guterres held discussions about climate change and India’s support for the Paris Climate Agreement on the sidelines of the G-20 Summit. Secretary-General Guterres and the Indian leader “discussed the UN Climate Change Conference (COP24) and the importance of the completion of the Paris Agreement Work Programme, its transparency framework and climate finance,” UN chief’s spokesman Stephane Dujarric told reporters on November 30, according to PTI.

India has made a strong case for funds from developed countries to developing nations to fight climate change, which is adversely affecting people around the globe. In a discussion paper released on the sidelines of COP 24 to UNFCCC at Katowice, Poland, the Finance Ministry said that in 2016, developed countries published a USD 100 billion roadmap, which claimed that public climate finance levels had reached USD 41 billion per year in 2013-14. However, these claims have been contested by many.

An Indian government discussion paper in 2015 noted that only credible number is USD 2.2 billion in 2013-14. The 2017 numbers also tell a similar story as only around 12% of total pledges to multilateral climate funds have actually materialised into disbursements. “The message is loud and clear we need to establish more credible, accurate and verifiable numbers on the exact size of the climate finance flows from developed to developing countries. Modalities for accounting of financial resources cannot be at the discretion of a particular country,” it said.

The paper argues that in order to have a transparent reporting of climate finance, the accounting framework has to be robust with concrete definitional requirements. While the financial requirements of developing countries run into trillions of dollars, the commitments made by the developed countries for enhancement and support in relation to climate finance is not clearly translated into reality.

Equally important is the issue of reporting and tracking of climate finance, it said.

The Paper finds serious concerns with the various numbers on climate finance reported by the developed countries. Definitions of climate change finance used in various reports were not consistent with the UNFCCC provisions and methodologies used were also questionable, it added.

It further said while the developing countries like India have been taking many actions against climate change and adapting to its adverse effects best to their own abilities and national circumstances, as mandated in the UNFCCC and its Paris Agreement, the climate actions of developing countries have to be supported by climate finance flows from developed to developing countries.

“Yet the progress achieved is not quite satisfactory,” it said.

Source: PTI

This article is part of a series on climate change action in view of COP24

Cinépolis hosts a movie screening for 4700 underprivileged kids

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The CSR Journal

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December 5, 2018

Cinépolis organised a special movie screening in association with Round Table India for underprivileged kids. This initiative is part of Cinépolis’s endeavour to change the lives of young children for the better. This year, Cinépolis treated over 4700 underprivileged children by screening the action sci-fi thriller 2.0 at Cinépolis cinemas across 18 cities.

Javier Sotomayor, Managing Director, Cinépolis Asia said, “Through our CSR initiative ‘Let’s All Go to Cinépolis’, we aim to bring joy and happiness into the lives of the lesser privileged children. Cinema has the power to influence and empower and being a responsible organization, it is our constant endeavor to provide this benefit to the underprivileged children as well’.

It was truly a memorable experience for many of these children who have never visited a cinema hall in the past and were enthralled with this initiative undertaken by Cinépolis. The screening was followed by a round of refreshments as well as an engaging discussion around the movie.

Cinépolis has been organising this activity in India for the last 5 years and has so far screened movies for 21,690 less privileged children in these years.

Honda Cars India signs MoU with Automotive Skill Development Council

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The CSR Journal

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December 5, 2018

Honda Cars India Limited, leading manufacturer of passenger cars in India today signed a Memorandum of Understanding (MoU) with Automotive Skill Development Council (ASDC) for accreditation of its premier training centre – Honda Vocational Training Institute (HVTI) in Tapukara, District Alwar, Rajasthan. The MoU was signed by Mr Praveen Paranjape, Sr VP and Director (General Affairs), HCIL and Mr Nikunj Sanghi, Chairman of ASDC.

HVTI is Honda’s state of the art technical training centre, which was set up in October 2011 with an initial investment of 51 MN for building & equipments to develop skilled manpower equipped with automobile specific methodologies and create job opportunities for 12^th Grade Pass out and ITI students. The accreditation from ASDC will enable HVTI to develop and impart vocational training to the youth using a curriculum and protocol preset by ASDC. All the trainees passing out from HVTI will benefit through the ASDC certified course which will further increase their future job prospects.

Mr. Praveen Paranjape, Sr Vice President and Director, General Affairs, Honda Cars India Ltd said, “HVTI collaboration with ASDC will usher new opportunities specially for the youth in this region. Since its inception, through the HVTI initiative, we have trained almost 14,000 students creating a pool of skilled manpower to meet the need of growing automotive industry with 100% placement assistance. This initiative reiterates HCIL’s commitment for youth development and to be a company society wants to exist. Joining hands with ASDC, we will be extending support to the local communities around the plant and become an enabler of positive transformation.

Students can select different automotive training courses designed by Honda Vocational Training Institute like Introduction to Basics of Manufacturing, Welding Module, Filter Module, Paint Module, Apprenticeship etc. The training will be provided at subsidised fee for all students.

ASDC, is the first sector Skill Council of India, promoted by the Automobile industry, through Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association (ACMA) and Federation of Automobile Dealers Association (FADA) along with the Government of India represented by Department of Heavy Industry, Ministry of Skill Development and Entrepreneurship, Ministry of Road Transport & Highways and National Skill Development Corporation (NSDC). ASDC envisions making India self –sufficient in availability of skilled personnel for sustaining growth & increasing competitiveness of the automobile industry. ASDC has over 240 training partners, 800 certified assessors, 14 expert groups with 295 industry experts and over 2000 training centres.

CSR: Water Conservation Efforts By Indian Corporates

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Hency Thacker

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December 5, 2018

‘India’s ‘worst water crisis in its history’ is only going to get worse’. There are various research reports and analyses to indicate that by 2030, the country’s water demand is projected to be twice the available supply. If not addressed, the water scarcity is also likely to affect the GDP of the country accounting for almost a 6% loss by 2050.

According to studies, approximately 2,00,000 people die every year due to inadequate access to clean water, which is “only going to get worse” as 21 cities are likely to run out of groundwater by 2020. Around 600 million people are already facing a severe water shortage, according to a government think tank. In the long term, the undersupply is likely to become more acute, as the demand increases with the 1.4 billion population growing at a rate of around 1%.

The situation remains alarming and it is unfair to leave it to the policy makers only, to address the situation. Some states like Gujarat, Madhya Pradesh and Andhra Pradesh have already taken situation in their hands and are doing a good job of managing their water resources in anticipation of the looming water crisis.

However, comprehending the importance of conservation of this precious resource, corporate houses have stepped up to participate in the movement of improving the water situation. The DS Group (Dharampal Satyapal Group) is committed to improve water security in areas identified as critical and water vulnerable. The Company has undertaken water conservation as the mainstay of its CSR initiatives.

DS group has initiated water conservation project in Sikar Rajasthan. The group has constructed over 22 check dams in the area with total water harvesting capacity to hold is 411587 Cu M of water since 2013. The objective was to construct water harvesting structures in an area, which is arid and water deficit. These structures block drainage line and create series of check dams so that when it rains, the water is stored. If it overflows in one dam, it goes over to the other, and so on, until eventually all the dams are full.

The group has also taken up the project of drought mitigation in Mahoba, Uttar Pradesh. The severe drought every year in the country causes distress. In FY16, more than 250 of 600-plus districts across 11 states affected about 330 million people. Over 40% of agriculture in the country depends on adequate and timely rainfall.

It is therefore critical to explore ways to make farming sustainable by reducing its dependency on monsoon only and constructing water bodies like farm ponds to store and manage precious water. The group initiated a program to establish a model of farm ponds to allay the impact of drought in future by re-instating the old water structures for water availability throughout the year and increase the ground water level.

In an effort to provide safe drinking water to a large population comprising rural, semi-urban and urban population, Earth Water has stepped up with a unique solution. The company has built over 2,500 plants over the last 3 years which include water and wastewater treatment plants like reverse osmosis plants, sewage treatment plants, softeners, filtration units and pressure boosting systems to various corporates, institutions, industries and government organisations.

The machines have applications in large public places, such as railway stations, bus depots, government-run hospitals and rural community centres. About 1,945 water vending machines (WVMs) are currently operational or under execution across 12 states. It touches and improves the lives of nearly 3 million people every month through water vending machines, and supply over 46 million litres of safe drinking water every month.

However, the efforts by the corporates and government would be successful only when we as a society start considering water as a resource and not take it for granted.

Thank you for reading the story until the very end. We appreciate the time you have given us. In addition, your thoughts and inputs will genuinely make a difference to us. Please do drop in a line and help us do better.

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Key regulatory shifts in Indian corporate governance in 2018

By

Rajeev Nair, Principal Associate, Rajani Associates

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December 5, 2018

The subject of Corporate Governance (CG) started to gain headway in India in the mid 1990s especially after certain unprecedented capital market events in the early 1990s. In general parlance, CG can mean some set of principals by which a company should ideally be directed and controlled.

CG has come a long way since, until the implementation of the recommendation of Kotak Committee. Due to the separation of management and ownership aspects, the need for accountability and responsibility was felt which led to birth of corporate governance which requires the organisation to uphold the interest of its stakeholders bound by principles.

The need for overhaul of corporate governance has been felt over the years, with timely amendments, especially in recent times owing to certain headline grabbing cases such as Satyam, Kingfisher, Fortis, Infosys and Flipkart.

Instances of management overreach, shareholder activism, outright fraud and imposition of will on the Boards by founders called for further tinkering of the corporate governance rules for which the Kotak Committee was set up. SEBI eventually amended the Listing Regulations by accepting majority of the committee’s recommendations.

Accepted recommendations include modifying the definition of Independent Director vis-à-vis in relation to the Promoter group and other listed companies. Further, the ambit of Related Party, Material Subsidiary, Senior Management have been revised. The requirement for Quorum for meetings has been revised. Norms for minimum number of directors, responsibilities of Committees has been stated. The aspect of materiality of Related Party Transaction and voting by related parties has been modified.

One keenly debated issue was separation of roles of Chairman and Managing Director. However, the amended norms stipulate ‘watered-down’ eligibility requirements for a chairperson which also includes that the Chairperson should not be related to the MD/ CEO.

There are quite a few norms pertaining Independent Director. The evaluation norms of Independent Director have been widened. They are now required to furnish declaration pertaining to their ‘independence’ in line with the revised norms. Companies need to obtain Directors and Officers (D&O) Insurance for their Independent Directors.

Resignation of Independent Directors now requires detailed reasons for resignation, confirmation from such director that there are no ‘material reasons’ for resignation other than those provided by the director. The requirement of appointment of independent women directors is a key reform in the sphere of independent directorship.

The revised changes would be applicable to certain categories of listed companies over a period of a couple of years. Such staggered implementation of the revised norms makes good sense as the companies would require such additional time to fully absorb the new changes and come to terms with them.

The government may come out with certain exams for individuals intending to act as independent directors. The increase in the composition of the members of the board will facilitate the board with directors from varied backgrounds and even in the event of deadlock situations the process of arriving at decisions can be expedited.

The remuneration of the promoter executive directors and non-executive directors beyond a certain threshold will require the consent of the shareholders via a special resolution; this will enable the shareholders to have a check-balance in relation to the inconsistent compensation paid to such promoter directors. The skills/expertise/ competence of the board of directors are required to be disclosed in the annual report of the company.

After incorporating the Kotak committee recommendations, one would wonder about the next set of revisions to corporate governance norms. Here, it is pertinent to note that over the past decade or so, there have been numerous legislations in order to strengthen the corporate ecosystem.

Considering the spate of laws vis-à-vis the various corporate indiscretions that have come to the fore, it can be inferred that merely enacting various laws would not be the sole panacea for all the ills of corporate governance. It is equally vital to have a robust and effective enforcement regime in place. This would inspire confidence of all the stakeholders and the effective and timely enforcement will act as a good deterrent for wrongful acts.

It may not entirely wipe out the corporate misdemeanors but would go a long way in cleansing the system. Needless to add, this would enhance the image of the country and inspire the confidence of international investors.

What is plaguing the CG realm is the highly technical approach and the tick box perspective because this does not result in compliance of corporate governance in intended spirit. As such, despite having laws in place, we come across various corporate fiascos happening every now and then.

Informing the minority stakeholders of all the major decisions will bring more management accountability and it will hence increase the transparency which might attract good investors, and enhance company image. We are yet to see where minority shareholders have regularly challenged the errant management except one-off cases.

Independent directors need to be diligent and enquire about every matter which comes before them and red flag them, if required – which did not happen some years back in the case of an Indian IT major; ironically the happenings went against its very name. To summarise, independent directors need to become active and shed their ‘auto pilot mode’ image.

The author is Principal Associate, Rajani Associates. He has been with the firm since 2010. He is currently a part of the Merger & Acquisition Team. Rajeev has passed his LL.B. examination in the year 2007. He is also a qualified Company Secretary from the Institute of Company Secretaries of India.

Views of the author are personal and do not necessarily represent the website’s views.

Thank you for reading the column until the very end. We appreciate the time you have given us. In addition, your thoughts and inputs will genuinely make a difference to us. Please do drop in a line and help us do better.

Regards,
The CSR Journal Team

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Sustainability as we knew it is over!

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Kasmin Fernandes

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December 5, 2018

Sustainability among brands is undergoing a renaissance as eco-conscious consumers demand ethical practices, responsible behaviour and innovation to cut excess. In response, brands are creating products, services, packaging, and new systems that are as desirable and functional as they are eco-friendly. Make way for the New Sustainability.

Late in 2018, the UN Intergovernmental Panel on Climate Change reported that the world has just over a decade to bring climate change under control, and that unprecedented efforts to tackle emissions will be needed. This came after a year of heatwaves across four continents when even the Arctic Circle saw wildfires.

Sustainability as we knew it is over. And brands and consumers are starting to respond in a more proactive and scaled way than ever before. The Innovation Group UK charted this shift towards normalized “radical” sustainability in its 2018 report ‘The New Sustainability: Regeneration.’ It finds that, in order for the planet to thrive, brands and consumers need to look beyond just “doing less harm.” The future of sustainability lies in regeneration; restoring ecosystems, rebalancing our climate, and building economies that thrive, while allowing people and the planet to thrive, too.

Brands are playing a decisive role in this regeneration by wielding their resources, influence and innovation expertise to effect change on a global scale. While much of the effort has an operational focus, pioneering brands are finding innovative ways to build regenerative sustainability into their products and services.

An ad for North Face’s Cali Wool collection

At its simplest, this means giving consumers more positive choices. Outdoor retailer North Face’s Cali Wool collection offers a negative net carbon impact. The brand’s Climate Beneficial^TM wool is sourced from Bare Ranch, which uses regenerative agricultural methods to sequester more carbon dioxide than is emitted.

The landscape from major brands to startups is full of new innovation. Malta-based NGO Poseidon is planning a different approach, leveraging the retail sector to introduce blockchain-powered carbon credit trading to the high street. Poseidon’s technology allows shoppers to add microdonations to a purchase, which are then routed to environmental projects.

In May 2018, it conducted a pilot with Ben & Jerry’s Scoop Shop ice-cream store in London’s Soho. Shoppers were invited to add a penny to their purchase, matched by the store, to fund forestry projects in Peru.

Global consumers are now operating with a sustainability mindset, even if they struggle to make it a lifestyle. The “right” options are not always convenient, affordable, or accessible. Products and services like these, that provide convenient, effortless ways to contribute to regeneration efforts, will find favour with the mindful consumer.

This article is part of a series on climate change in view of COP24

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While the international COP24 conference continues, there is another piece of good news on climate change action from a corporate house in India.

M&M is also a signatory of the Science Based Targets initiative which provides companies with a clear pathway for reducing emissions in line with the Paris Agreement’s goal of limiting global warming to well below 2°C above pre-industrial levels.

All these commitments are helping the company on its path toward carbon neutrality.

This article is part of a series on climate change action in view of COP24.

In May 2018, it conducted a pilot with Ben & Jerry’s Scoop Shop ice-cream store in London’s Soho. Shoppers were invited to add a penny to their purchase, matched by the store, to fund forestry projects in Peru.

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