The Indian Responsible Competitiveness™ Index: An Award for the Most Responsibly Competitive Companies in India

Sunil A. Misser, Chief Executive OfficerDecember, 2010

www.AccountAbility.org

• The Game has Changed

• Responsible Competitiveness™

• The Indian Responsible Competitiveness Index

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Table of Contents

The Game has Changed

The Challenges of Sustainable Development Increasingly Affect the Ability of Companies to Remain Sustainably Competitive

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The Game has Changed

Climate Change: Threatens the livelihoods of 2 billion small-scale farmersRequires USD $1.5 trillion/year in climate proofing for power and water industriesWill cause millions to suffer from tropical diseases & infections

Water Scarcity: By 2030 the world will face a 40% deficit between fresh water supply and demandBy 2020 two billion will lack access to clean, fresh water1.6 billion already have difficulty paying for fresh water

Food Security: We require productivity breakthroughs to feed a global population of 9 billion by 2050New food price increases are forecast due to climate impacts, biofuel competition, and land speculationMajor global brands (Mars, Nestle, Unilever) are committing to source certified sustainable commodities

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The Game has Changed

The Challenges of Sustainable Development Increasingly Affect the Ability of Companies to Remain Sustainably Competitive

For forward-thinking, strategic, and responsible organizations, these challenges represent Business

Opportunities

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Sustainable Development Business Opportunities

IndustrySector

IndustrySector

Game-changing Challenge

Game-changing Challenge

Potential Game-changing SolutionPotential Game-changing Solution

Agriculture Depletion of water•Waste & use•Purification•Industrial Pricing

Health care Lack of access•Low-margin/high volume sales•Enhance the health value chain•R&D partnerships

Telecommunications Communications for development

•Expand access•Vital services on mobile devices•Support free speech

Housing Affordable Housing•Low-cost design•Low carbon, low energy materials•Residents generate energy for the grid

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Sustainable Development Business Opportunities

IndustrySector

IndustrySector

Game-changing Challenge

Game-changing Challenge

Potential Game-changing SolutionPotential Game-changing Solution

InfrastructureGreen Design;

Community “Right of Way”

•Use of recycled materials•Strategic stakeholder engagement •Low-energy design solutions

Transportation Road safety; Access to Mobility; Low-carbon

•“Driver-literacy”•Low-cost, low carbon transport solutions•Energy efficient vehicles

Financial Services Access to finance; Responsible Banking

•Mobile Banking & Financial Literacy•Investing in Responsibly Competitive firms

•Investing in low-carbon growth

Consumer Goods Emerging consumer interest in sustainable

development

•Create opportunities for low-income individuals in value chains

•Source from certified producers

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About AccountAbility

Our mission is to help our clients and members improve business performance and build sustainable, competitive advantage.

BEIJING LONDON JOHANNESBURG NEW YORK SAO PAULO WASHINGTON D.C.

About AccountAbility

Responsible Competitiveness™

RESPONSIBLE COMPETITIVENESS™ is the enterprise-wide approach to managing environmental,

social, economic and governance issues. The Responsible Competitiveness approach builds sustainable competitive performance through

measurable, transparent, and accountable commitments to employ renewable resources and to improve the well-

being of workers, communities, and ecosystems.

* Responsible Competitiveness™ is a trade mark registered to AccountAbility Strategies, no. 2521826

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Responsible Competitiveness™

Philips is building a $500 million solar lighting business for low-income communities in Africa

Over a 10-year period, Dow realized $7 billion in savings thanks to a $1 billion investment to reduce energy consumption and improve efficiency.

In an effort to address a social need, Verizon “Coupe” phone, created specifically for the disabled and elderly, sold 400,000 units at its launch and remained on backorder for months.

Nestle’s “Creating Shared Value” strategy connects the company directly with farmers and agricultural communities—this helps avoid sharp price changes and meet consumer demand.

General Electric’s ecomagination generated $70 billion in revenue in its first 5 years, thanks to an initial $5 billion investment.

In 2007, Nike released a landmark CR report that committed to bringing systemic change for workers’ rights throughout its supply chain. The financial markets reacted positively and Nike moved from the 70th percentile to the mid 90th percentile on the Steel City Re Reputation (IA) Index.

ReputationReputation

RevenueRevenue

EnhancedBusiness

Performance

InnovationInnovation

Cost Reduction

Cost Reduction

Risk Mitigation

Risk Mitigation

Responsible Competitiveness™ enhances Business Performance in five key areas.

The Responsible Competitiveness approach builds on seven years of AccountAbility research analyzing the social, environmental and governance performance of companies, including:

• Accountability Rating™ -- Fortune• Climate Competitiveness Index 2010• Saudi Responsible Competitiveness Index• Responsible Competitiveness Index™• Annual survey of CSR perceptions in China -- Fortune China

Responsible Competitiveness™

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Responsible Competitiveness™

“Success in tomorrow’s markets means working with stakeholders to understand, predict, and shape our future environment and ways of living. Tackling important problems together will require teamwork and respect. Transparency and accountability will be more important than ever.”

Jeffrey Immelt Chief Executive Officer

The General Electric Company

“Our collective challenge and opportunity is to promote responsible competitiveness between companies, communities, and nations that advances economic development in balance with social and environmental imperatives.”

Fredrik Reinfeldt Prime MinisterSweden

“The essence of responsible competitiveness is value creation”

Carlos Ghosn Chief Executive Officer Nissan

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Responsible Competitiveness™

There is a strong correlation between Growth and Responsible Competitiveness

Source: AccountAbility, 200814

Responsible Competitiveness™

Source: AccountAbility, 2008

As a Country, India falls into the category of “Complier”

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Stages of CR Development

Early-Stage Companies

STARTERS

Emerging Leaders

ASSERTERS

Pioneers

INNOVATORS

The Indian Responsible Competitiveness™ IndexAn Award for the Most Responsibly Competitive™ companies in India

Delivered in partnership by AccountAbility and the Institute for Competitiveness

Country-wide, cross-industry

Award for the most Responsibly Competitive companies

Promoted through a national media partner and an Award Ceremony

Rating and benchmark for all applicants

Awarded in 2011

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The Indian Responsible Competitiveness™ IndexAn Award for the Most Responsibly Competitive™ companies in India

Together we will make Sustainable Development sustainable

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