Environment minister Jairam Ramesh may have been questioned about India’s ability to reduce carbon emission intensity of GDP by 20-25% by 2025 on a base of 2005, but he should draw cheer from a recent study that says that many Indian companies ranging from power majors like NTPC to diversified groups like Mahindra and Mahindra to software leaders such as Infosys are already on track to reduce greenhouse gas (GHG) emission.
Two out of every three companies have set targets to either cut energy consumption or GHG emissions, according to a recently released Carbon Disclosure Project Report 2009: India 200. Some companies plan to reduce GHG emissions by absolute numbers, others by bringing down emission intensity. Carbon Disclosure Project (CDP), which is a UK-based NGO housing the largest database about carbon emissions of the biggest companies in the world, says it underlines that India is in sync with the global trend of pursuing a low-carbon growth path.
In fact, FE has already reported, quoting Planning Commission, that India has the potential to reduce emission intensity per unit of GDP by even up to 39% by 2020 on a baseline of 2005 without compromising growth. India has already brought down its emission intensity by 17.6% (1990-2000).
CDP has not added up its figures, but the way ahead is clear. Talking to FE, Paul Simpson, chief operating officer, CDP, said, “The proactive role of an identifiable group of companies in bringing down emissions should help the Indian government devise a comprehensive response to fight climate change. The examples will also prompt others to follow.”
While power utility NTPC has set up the Centre for Power Efficiency and Environmental Protection to enable coal-fired power plants to cut GHG emissions, ONGC has a short-term target to reduce GHG emissions by 15% by 2014 and 40% by 2019. The long-term plan is to become carbon neutral. Initiatives by such companies are important because most GHG emissions in India are emitted by power companies and industries.
Among private sector companies, Ambuja Cements is aiming to achieve 20% reduction in CO2 emissions by 2012 on a baseline of 1990. Kishore Kavadia, advisor, Sustainability, Ambuja Cements, says, “Our emission reduction is both product and process driven. We are shifting from manufacturing ordinary portland cement to blended cement, which uses wastes like flyash. Similarly, we are reducing the input of energy to bring down emissions.”
Mahindra and Mahindra hopes to reduce GHG emissions by 5% by 2013-14 over 2008-09. Since the groups activities span across automotives, farm equipment, financial services, trade and logistics, IT and infrastructure development, it has adopted different strategies for reducing GHG emissions to suit the requirement of each business.
Says Beroz Gazdar, vice-president, Infrastructure Development Sector, “Across the board, however, we will adopt a multi-pronged strategy by targeting low-hanging fruits like enhancing energy efficiency through retrofitting of electricals, adopting waste heat recovery methods and use of renewable energy for small applications to big ticket items like sophisticated control systems. In our infrastructure development business, we are committed to develop certified green buildings for all our future residential projects. It will account for considerable reduction in our GHG emissions.” She also anchors the sustainability initiatives across the Mahindra and Mahindra Group.
The other group of companies has set targets to reduce emission intensity. While some companies define emission intensity (tonne of CO2) in terms of per unit products or per million dollar turnover, others report it in terms of manpower. A few report in more ways than one because there is no standard definition of emission intensity.
IT companies in particular report emission intensity in terms of manpower. While Tata Consultancy Services is aiming to cut CO2 emission intensity by 2% per employee per year over next 10 years on a baseline of 2007-08, Wipro has set a target of reducing GHG emissions from 4.8 to 2.5 tonne per capita till 2015 over 2008-09.
Similarly, Infosys Technologies has set a target of reducing GHG emission intensity by 5% per capita per year over 2007-08. In the first year itself, the IT major has already achieved more than its target by cutting per capita emissions by 13% in 2008-09 over 2007-08. Infosys is focused on being a carbon neutral company with a particular focus on reducing per capita consumption, says a company spokesperson. Infosys is focusing on energy, water, emission, waste management and bio-diversity. The company is also trying to sensitise employees on becoming climate friendly and managing their own carbon footprint.
The list of such companies and initiatives goes on. Added CDPs Simpson, “These initiatives are important because they not only show that Indian companies are increasingly measuring their GHG emissions, but also figuring out how to bring them down.” The observation is important considering that CDP is driven by 475 global investors managing $55 trillion, who factor in such information while making investment decisions. CDP counts even Indian investors like IDBI Bank, IDFC and Yes Bank among its supporters.
Source: The Financial Express
Published on 19 December 2009