Jamshyd N Godrej is probably the most famous Indian businessman with wildlife interests. The chairman of Godrej & Boyce Manufacturing is also a trustee of WWF- India. Besides, he is also chairman of the CII-Sohrabji Godrej Green Business Centre, Indias first green building. In an exclusive interview with FEs Rajiv Tikoo, he talks about his passion for wildlife, its implications and relation with climate change. Excerpts:
You are more active in saving the tiger than promoting more popular climate causes. Why?
Well, actually some of the work, especially about forests and wildlife, that I have been doing is what I consider to be extremely important. When you talk of saving the tiger, you are not talking about only the tiger. You are saving forests, you are saving water, and you are saving its peripherals, which protect the tiger. You are actually reaching out to a very large area, which has also tourism and business potential. So, there is a large combination of collateral benefits in it. When you grow up interested in something, you see the benefit it offers to the society and economy. That is the reason we have been doing it.
Do you see climate change more as a threat or an opportunity?
I think both. The simpler answer is opportunity, which everyone is interested in. Climate change offers an enormous opportunity because you are basically going to be able to change India’s carbon profile from where it’s today. If you look at India today, we have a very low footprint per person. That’s because we have a billion people. But our actual footprint is very large. If we don’t start worrying about what our footprint is, then our economy is also not going to grow sustainability because the whole issue of energy security is likely to crop up. So, the business opportunity to change the paradigm here is enormous whether its renewables like wind, bio or solar or fuel efficiency and standards. There is a huge opportunity as we grow.
What about the risk element?
The worrying part or threat is that future climate change negotiations could lead to some sort of restrictions on growth if we have to limit carbon emissions. So, these are worrying issues for industry. At the moment its not affecting industry. Its not likely to affect industry in the near future. But industry worries about it because it is concerned. The bill in the US Congress already talks about trade sanctions. I would not say that these are genuine threats, but these are concerns that have to be addressed. If India does follow a low carbon growth path, then we have little to worry about. If we dont follow it, then there is a threat.
Most businesses look at climate change either as a threat or as an opportunity. What does it call for them to turn climate challenges into business opportunities?
When you look at industry, you have to break it down into verticals. Take, for example, cement, steel or petrochemicals. They all consume huge amounts of energy. They are producing all sorts of byproducts and wastes. So, the opportunity here is enormous. If you can become the most efficient energy user to produce one unit of steel and cement, the business opportunity is enormous. If at the same time you are doing something good for the country, its laudable. There is no downside to becoming a climate friendly business.
Then why do most companies still treat it as a corporate social responsibility issue?
Climate-proofing will become an integral part of business processes over time and I dont think you will be able to avoid the subject in the future or treat it as a corporate social responsibility issue. It will become a core business function sooner than later.
Is shifting to low-carbon operations prohibitively expensive What is your experience?
People miss the point here. There may be an investment, but there is a payback. It’s more than in business as usual. Thats the real point. The best example is of green buildings. If you put up one, it may cost you more initially, but it would cost you less to run it. In fact, you get overpaid over a period of time. The payback for these types of technologies is very good. These ideas need to be promoted because they are not only good for business, but also the society and country.
What are you doing as a company?
A lot. For example, in refrigeration business, we were the first one to change from CFCs to totally non-CFCs. We did it out of conviction, and not because anyone asked us to do it. I think the labelling programme that has come for refrigerators was something we were keen on. We have been pushing the government for a long time. The monitoring phase is still on. Everybody is following us.
Did it cost you more?
Going green does not necessarily cost more. It can be done well within the normal cost. It can cost more or even less, depending upon what all you are into and how you go about it. If there is a premium, its very small.
What is the response of the customers if the additional cost is passed to them?
In Germany people are ready to pay more for green products. In India, they are not. They will have preference for a green product, but they wont pay you more for it.
Does becoming climate friendly give Indian businesses a competitive edge globally?
So far, it has not been such an important factor, but banks are looking at it closely. The banking industry signed the Equator Principles many years ago, but it was followed more in breach than compliance. Banking industry is going through a transformation now. They have understood that if they support sustainable ventures, the return is good. You have to create the right conditions. Its also the responsibility of the industry to educate their bankers. They should tell bankers, You have to pay us 10% more for this project, but we will deploy all those technologies that make our projects both financially viable and environmentally sustainable. These are the sort of discussions that we need to have with the banking industry. If you are not sustainable both financially and ecogically, then you dont have a good business model.
We don’t see Indian industry engaging much with the global business community in laying down the climate change agenda. Why?
We need to do a lot more. Business has to be much more involved. The government needs to involve businesses a lot more. Whenever the government has made a policy about industry without the latters cooperation, the policy is always flawed. Whenever government thinks of a policy on climate change, its absolutely essential to involve industry.
Is not it time for the industry to take a lead by itself?
I agree we are not engaging with the global community on climate change issues as much as we should. We need to engage more and have our voice heard. Its important for protecting our interests in the long run.
Source: The Financial Express
Publiahed on 10 November 2009