 Welcome to the session on understanding why sustainability is important for us. So, in the last two sessions we are trying to understand what is sustainability, what is sustainable development, how do we define this, how do we operationalize this and also understanding little bit on the limitation associated in operationalizing the sustainability. So, in this session what we will try to do, we will try to see why sustainability is imperative and mostly whatever the issues, whatever the factors responsible for or whatever the changes that has happened over a period of time and those makes the sustainability is imperative, we will try to understand them or we will try to explore them further. Now, why sustainability is imperative? We know that sustainability gives us benefit. Sometimes it gives us long term benefit and sometimes it gives us the short term benefit. When we say that it is long term benefit, why I say long term benefit is that even if for few of the sustainability initiative possibly we will do not get the immediate return. In fact, in most of the cases because whatever the benefits we get out of it, it takes some time period or over a period of time we get those benefits, but few of the initiative we get the short term benefit. So, sustainability is important from that point of view because it gives us the short term and the long term benefit. Then the second point or the second factor possibly why sustainability makes imperative is the concept of limit. What is the concept of limit? Whatever the resources available to us, it is limited, it is not unlimited and this is what the basic economics says also that whatever the resources available to us, those are always limited and human wants are unlimited. So, explaining that further in the context of sustainability, we operate with a concept of limit and what is the concept of limit? Like for example, there is finite amount of space available to us, there are limited resources to produce different types of goods and services those are available to us and also there are limitation in term of the technology. So, the concept of limit makes us think that we need to include the sustainability initiative, we need to include the sustainable practices in their day to day activities and also in the business activity. Then the third point is that to maintain the earth's ecosystem, the only possibility what we left with us is to sustainable choices. We have to make the sustainable choices in our production, consumption, then literally we can maintain the earth ecosystem. So, there are a lot of views, lot of opinion, lot of studies associated with the fact that why sustainability is imperative. So, in this session what we have tried to do is that whatever the points makes the sustainability important or whatever the points make the sustainability imperative, we have categorized them into this four broad cluster. Few of them comes under environmental issues, few of them comes under change in the economic system, few of them we have summarized into the role of stakeholders and the last one is technology and innovation. So, what we will do now is that we will try to see how this let us say broadly this environmental issues making the sustainability imperative. Now, the first thing what comes in environmental issue is that changing climate. So, although the debate was there at some point of time regarding the evidence of climate change, but now it is pretty clear that there is warning sign and evidence of climate change. So, let me give you a small example to talk about the evidence. So, possibly if you look at the cyclone or super cyclone, possibly the biggest cyclone happened in the near future is in 1999 when the super cyclone happened in the east coast. But after that if you see just looking at the the history in last 10 years, every year we get one or two cyclones, some mostly in the east coast and in the last cyclone Tauti that came also in the west coast. So, the trend shows over here is that we get frequent frequent disaster typically the example what I have given here for the cyclone, but there are also other example like cloudburst tsunami and the associated with the like heat prone area that is drought. Now, the second point over here is that whatever the disaster whatever the extent we have to we get those are intense also because it every time you must have seen the damage it creates to the life and property typically in this jargon jargon we say that is loss and damage to life and property. So, one thing is that what is the sign what we are getting is that there is frequent and intense natural disaster. Now, coming to the second point, so you must be hearing the negotiation what is going on in the global scale that is the global negotiation on the climate change and there is one of the issues which is very urgent is that if you are not reducing our temperature, if you are not reducing our contribution to the global climate and the reduction in the whatever the effect of the global climate change, possibly we will find that few of the island nation they will submerge into the water. There is a threat to the survival of many small island states due to the global warming and the rising sea level. Few examples are Maldives or Kiribati or Tuvalu or other lowline islands. So, there is a recent newspaper article which says that now Maldives is planning for a floating city because they know that possibly at some point of time this is going to be submerged if you are not doing anything for the to reduce the effect of the climate change. Now, another few of the evidence what we get for this climate change is that it has been estimated by the year 2050 that every 7 people in the if people in Bangladesh will be displaced by climate change and also we know what is the effect on the rise production of the Bangladesh because of this rising sea level. And this environmental justice foundation there is a report which says that up to 18 million of people may have moved because of the sea level rise alone. And this gives the fact about that the so called climate refugee over a period of time because since these are going to be submerged their area is going to be submerged they will migrate to other place and this is what the we use the word climate refugee. And the recent points about India is that also two weeks back there was a report which came from IPC which is which says that the coastal cities are more vulnerable to the climate change. And this is a report from Times of India October 30 2019 which gives the fact that rising sea may have put 36 million India at risk by 2050. I think these facts are good enough to understand to also adopt that sustainable practices because at least in that context we will try to see that how much the human we can reduce in term of the human contribution to the climate change. Now, the second point what comes under environmental issue is the changing resources. So, if you look at the graph on the right side of the slide it gives the world population growth from 1700 to 2100. So, see the numbers over here. So, possibly in so far in 1800 if you see the population is just 1 billion 1900 it increased from 1 billion to 1.65 billion. And from 1800 from 1900 if you look at in 2000 the 2100 the predicted growth is 10.9 billion. Now, look at the growth rate. So, from 1800 to 1900 it is just from 1 to 1.65, but from 1900 to 2000 it is 1.65 to 6.14 and from 2000 if we take the projected population growth in 2100 then it have become 6.14 to 10. So, there is a growth there is a growth in the absolute sense, but there is a if you look at the annual growth then annual growth has already already reached the peak and it is going to decrease in 2100. If you just take the figure of the absolute growth in population we know that more population more demand will require more land more water more resources. And that makes the earth shrink into the land per capita if you look at in 1900 the land per capita is 7.91 and in 2050 the land per capita is going into 1.44. So, the first factor what what is changing making the change in the resource size is that population growth which is shrinking our earth in term of the land per factor of land per capita available to the population. Now, going further let us see what is happening to the other resources right, what is causing the degradation. So, you must have seen forests have almost disappeared why forests have disappeared because the human population has cleared those forests to plant more crops for grazing animal for supply of wood and raw material the typical forest waste economies right. Then the second point is technology and the industry or so called businesses and how we blame them for this resource changing resources. In one way we use resources to produce also the by-product what we do in the production process is vehicle emission, toxic waste, carbon emission which gives rise to the air pollutant. These are all by-product because of our invention into the different types of goods and also the way we are using the resources leading to the cause in the global warming. But the fact is earth supply of resources is finite and our consumption of natural resources is faster than our planet that can replenish them. So, that creates a pressure in the resource available to us. Now, if you look at this slide this gives some facts about the resource degradation and depletion. So, every hour 16.92 acres of productive dryland become desert, 27 percent of our coral leaf have been destroyed and if the rate continues remaining 60 percent will go in 30 years and the what is more worrisome over here is that although there is lot of rules, there is lot of policy, lot of restriction associated with this waste a solid waste typically plastic waste. If you look at the facts we have a garbage island floating in our ocean mostly comprised of plastic and you know what is the size of that? The size of that is that equivalent to India, Europe and Mexico combined. And in a microscale we can give the example is that look at the coastal city. The moment there is a high tide, the moment there is a cyclone interestingly see gives back all the things what we have thrown to them and that comes back to the base. So, this is the amount of waste what we are dumping in the water bodies, dumping in the water resources. We are as I was saying in the previous slide also we are using of 50 percent more natural resources than the earth can provide and at our current population we need 1.5 earths which we do not have. Then few more facts we extract almost 55 billion tons of fossil energy, minerals, metal and biomass from the earth. The world has already lost 80 percent of its forest and we are continually losing them at the rate of 375 square kilometer per day and at the current rate of deforestation, 5 to 10 percent tropical forest species become extinct every ticket. Now, this the facts gives that we should why we should think of sustainability, why we should think of the sustainable development process or practices. Then the third factors what we consider under environmental issue is the pressure on the earth carrying capacity. So, there are many more example I have just picked two examples that how it creates on the earths carrying capacity. The first figure if you look at this gives us the increase in the temperature from 1900 to 2020 and if you look at the growth the way it is happening, if you look at the trend the temperature is going on increasing. And one small fact about is that the highest temperature what we get in summer in India possibly that has increased in last 10 years at least more than 9 to 10 degree. And the second to the second and the third pictures talks about the water scarcity. This is beautifully summarized in a blog in WWF and which the pictures picks itself that how the water scarcity what kind of impact or what kind of effect we have got because of the water scarcity. Few facts about the water the worldwide lack access to water is 1.1 billion that is 14 percent of the world population. Water scarcity for at least one month of the year 2.7 billion that is 34 percent of the world population and projection is by 2025 two-third of the world population may face water shortage. And let me bring a typical example over here is that possibly we are all buying mineral water there may be many more reason why we buy mineral water but somewhere the fact also is that at some point of time buying water in bottle and managing with that would be reality if you are not taking any action over it. And this talks about the imbalance in earth carrying capacity overusing and that makes there is a imbalance or there is a pressure in the earth carrying capacity. Now getting into the second cluster that is changing economic system and we have we have summarized few issues which comes under this and those make sustainability is imperative or sustainability is important. Now after industrial revolution if you say the economic system is based on growth. I think possibly the first way we got the growth is through industrialization more activities more industrial activity more income more growth. So, after industrial revolution there is the economic system is based on growth then few more intervention like globalization organization those model also leads to the economic system based on the growth. Now when there is a growth that leads to one positive thing that is there is a effluence in the system there is a consumption in the system more effluence more consumption. This we will try to see again we will talk about ipad model that how do we link our activity and our impact into the environment. Also at the same point of time this leads to inequality in the income. Now the growth leads to effluence and consumption leads to inequality of income but it confronted with the limitation. What are those limits? Limit to growth, limit to consumption, limit to resources and limit to environment. There is a effluence there is a limit this gives us the impact. Then the second the second event happened that is globalization. Globalization creates a unique local and global linkages. So, the entire supply chain of the product or the services that has become global. So, you will find that the locally produced crop become in the grocery store across the globe. Typical example is that when I get the kiwi fruit next to my home that is in the grocery store in the shelf of the grocery store set. So, the local produce becomes global and globalization creates a unique local and global linkage. But the fact is that since it has become global the impact is also has become global. So, if the impact is happening in locally it is not only limited to that particular area that particular segment most of it it spreads also to the global impact. So, it is not that if you are using sustainable practices, but the other player in the value chain other player in the product supply chain if they are not creating sustainable practices you will be able to manage the sustainable way of production or sustainable product. Because the local impact becomes the global impact and that needs that in the entire supply chain we need to adopt the sustainable practices. Then the trend which has happened in last over a period over a period of let us say 20-25 years at least in the Indian context people they have moved from rural to urban right and what is the reason for that? The reason for that is that you there is a opportunity available in the urban that is economic opportunity available in the urban. So, you will find the migration happens at different scale possibly at at the very high sophisticate level and possibly it also happens in the deliver level. Urbanization it has increased the income, it has increased the growth because there is a opportunity available, but also it creates the impact. Now, let us see this all these three points what we have discussed that the economic system where the it is based on growth whether it is industrial revolution, whether it is globalization, whether it is urbanization what is the negative impact or the negative externality associated with them. So, this is what the negative externality right. So, the first picture talks about air pollution, second pictures talk about the water pollution and the plastic pollution. The third one talks about the gives a picture of urbanization. It is up to us that how do we read or how do we how do we decipher this story associated with this urbanization, more buildings, more influence and also if you look at that possibly there is no land available in this entire picture except there is a water body available next to this. The moment there is a any impact over the water body that is going to affect the entire population residing over there. And the last one is that it again talks about two things, the effluence and also what is the impact. The number of cars on the road shows the effluence we have our disposable income has become more, we are able to earn more and that is why you are able to spend more. But the impact over here is that possibly there is no space that one more extra car can also move and they are stuck over this because whatever the resources available and how are we using it there is a gap and this is what the outcome that we get into the traffic. Now, let me show you a few more trend. This trend gives us the global primary energy consumption by source. Still it is dominated by coal, oil and gas and whatever the renewable sources still it is not, if you will not able to take a bigger share in this global energy consumption. So, here energy consumption is growing because we are producing, we are consuming more, we are producing more and also we have a capability to produce more and in that process we are using more energy and most of this if you look at the bigger share from the non-renewable resources till now. Now, this is what the typical picture of changing economic system which gives a trend of global car sales by the key market in last 15 years that is from 2005 to 2020. And if you look at the number of car sales is going, going on increasing which talks about the again the effluence and the change in the consumption pattern. Now, this is what again the emission, the by-product of our so called consumption, so called income, so called production and there is a increasing trend in the world emission and in the second part of the slide if you see, this gives us the trend of atmospheric CO2 concentration from last say from 1300 to 2018. And if you look at this, this long-term atmospheric concentration of carbon dioxide this is measured through this PPM that is part per million. So, if you look at up to 1800, 1900 its kind of remain constant not much changes, but from mostly after between mid 1850 and 1900 the peak started going up and from 1900 to 2018 we move from less than 300 ppm to more than 400 ppm. And that says that how much is the impact we are creating through our activity. Now, this is the global greenhouse gas emission by sectors. It is a clear one again more energy more is the emission. So, most of the emission is coming from energy use that is energy use in industry, energy use in buildings and energy use in the transport and also there is a share of other sector like waste, agriculture, forestry and land use. Now, coming to the third cluster where we have tried to summarize that the role of stakeholders making the sustainability imperative mostly it is role or we may say also the increasing role of the stakeholders. Now, there is an increasing expectation of the stakeholder. Now, what are the increasing expectations? In one way we have investor then let us say consumers, industry peers, government, civil society. Now, how they are increasing their expectation? They if you look at the case of your investor they do the evaluation of capital market performance through ESG. It means how you do the performance in your capital market that is through the investment in your environment, social and governance. So, we will find that many top investor typically they assess the performance through the investment in ESG. Then the increasing the expectation by consumer playing their role there is a increasing in the pro environmental behavior revenue from the sustainable product is increasing and also consumer they are willing to pay a higher price for the sustainable product. So, if it is sustainable product you will find that consumer they are ready to pay more and there is a significant increase in the pro environmental behavior of the consumer. Then the industry peers, the peers get influenced when they find that one of them has integrate sustainability into the corporate strategy that at some point of time works as a informal benchmark. We will see this when we say that how the industry integrate the sustainability into their day to day practices. Then government there are lot of acts, disclosure, awareness that is coming from the government that how we why we should take the or how we should use the sustainable practices in our activity. And civil society is also playing their role because of increasing role of NGO and press agro. The second factor which is working well for the stakeholder is that there is a increase in the transparency and why there is a increase in the transparency because there is a well connected communication, there is a culture of connectivity, there is a and why this connected communication and culture of connectivity because of whatever the evolution that has happened because of the information technology. And also this different social networking platform that brings more transparency because the information is public in this case. And also the mandatory disclosure by the company because the other stakeholder they know about the fact that increases the transparency. So, the role of stakeholder changing there is a increase in transparency that creates a pressure on the system that they need to adopt the sustainability practices. The last factors what we consider over here why sustainability is imperative is that the technology and innovation. Now, let us list down whatever the technology and innovation those have been there in the field of sustainability or in the field of climate in last few years. So, we get access to cleaner technology, we have developed cleaner technology. The typical example is we are talking about electric transportation, we are talking about carbon capture and storage system. Similarly, we have developed alternate source of energy that is renewable power, solar panel and biomass. And the recent one is that when we are when we are developing the hydrogen as the substitute in the energy transition to the most to the decarbonization pathway or the low carbon transition. Then we have energy efficiency technology like LED light, sensor based technology and also the typical design for environment is being planned into the product like your green buildings, green products when designed for environment is being added from the conceptualization of the product or the whatever the system we are building on. All this creates a competitive advantage for the businesses and that gives whatever the competitive advantage is the firms or the industry they are getting that gives them a role to enter into the low carbon economy because that is what the new platform when we are making a transition from the existing one to the climate economy or the low carbon economy. And here Potter and Kramer they have put it nicely that it is increasing the share values like in the last slide we are talking about the role of the stakeholder how they are engaged and through this typically there is a increase in the share value for all the stakeholders. So, what we have a try to do in this session is that we have summarized all those let us say factor let us say issues or let us say changes those have been making the sustainability as the imperative. In the next session we will try to see mostly taking two readings that why some of them or how sustainability also fits to be a mega trend. Thank you.