Management Project

Sustainable Development: Practices Adopted in Various Industry Sectors in India

Pankaj GauravID: 12A1HP035

Introduction▪ Sustainable Development (SD)

implies economic growth together with the protection of environmental quality, each reinforcing the other

▪ Sustainable development in India encompasses a variety of development schemes in social, cleantech (clean energy, clean water and sustainable agriculture) and human resources segments, having caught the attention of both Central and State governments and also public and private sectors.

social

Environment

economy

Dimensions of Sustainable Development

Project ObjectiveTo do study on the sustainable development practices prevailing in various industry sectors ( Power & Energy, Mining, Petroleum and Refinery, Agribusiness ) in India and coordination of their strategic programs

To analyze the role of government, companies and other stakeholders in achieving desirable standards in sustainable development

To Study the efficacy of Sustainability Index (SI) as an effective tool for measuring sustainable development

Project Scope

Current Scenario Global Protocol for sustainable development

Strategies adopted by

various industry sector for

Sustainable Development in

India

Strategy for change: Indian

Agenda

Challenges and sectoral barriers

for sustainable development

Literature ReviewAtkisson’s Pyramid Model▪ Its five steps or levels include:– Level 1: Indicators- Measuring the trend– Level 2: Systems- Making the connections– Level 3: Innovations- Ideas that Make a

Difference– Level 4: Strategies: From Idea to Reality– Level 5: Agreements: From Workshop to Real

World

In the paper edited by Gupta and Sinha (1999), they have talked of additional properties of a good indicator like parsimony, internal or external validity, understandability by various user groups, inter-connectivity among different sub-systems, and gender sensitivity.

Mandavkar(1999) enumerated three criteria for indicators that are economic viability, management of technology and knowledge, equity for the sustainability and long-term productivity of a natural resource management program

TERI Project Report (2000) reviews the indicators prepared by the Commission of Sustainable Development (1992) from a developing country perspective.

Project Methodology▪ Analysis has been done

through study of data from secondary sources mentioned below for assessment of sustainability reporting practices.

▪ Data source: Secondary data sources (Companies’ websites for sustainability reports, Articles, Industrial forum like CII conference documents.

Industry Sector List of Companies

Power & Energy 1.TATA power2. Reliance Power

Mining 1. Coal India Limited2. Hindalco

Petroleum and Refinery

1. IOCL2. BPCL

Agribusiness 1. ITC 2. Rallis India Ltd.

Project Portfolio

Data Analysis Industries Major Sustainable InitiativesAutomotive Efficient Supply Chain Management Development of innovative fuel efficient vehicles Green

Infrastructure – for offices and factories Conservation of water and energy usage in the processes Optimization of material management process Provision of employee buses to reduce carbon foot print Utilization of alternative sources of energy

ICT Smarter Buildings Green IT – virtualization of servers, desktops using Cloud Tree planting at IT campuses Reduction of travel using innovative communication technologies Focus on reduction of paper in the offices

Banking Internet and Mobile banking and the introduction of IVR facility has reduced the usage of paper Innovative product offerings – provision of preferential loan rates for the purchase of hybrid vehicles and construction of LEED design buildings Green awareness campaign among employees Solar powered ATMs

Retail Eco friendly products and packaging Eco friendly sourcing Recycling initiatives Green Buildings Alternative Energy sources Energy, water and waste management

Power & Energy Sector: TATA Power

Sustainability Model at TATA

Installed Rain water harvesting systems and Sewage Treatment plants at all locations.

Revolutionary initiatives like Club Energy, & Greenolution

Carbon Foot printing is done as per the WBCSD guidelines, ISO 16040.

Biodiversity :Conservation of Endangered Mahseer Fish, Sea Turtle Monitoring Project, Trombay as an Important Bird Area (IBA)Green IT initiatives are also taken which includes Virtualization, Adoption of the Cloud computing, Enforcement of Power saving mode (Hibernation) through Domain Policy etc

Major Initiatives

Power & Energy Sector: Reliance Power

Short-term plan

▪ Form a sustainability council as an apex body to give impetus to our sustainability strategies

▪ Identify and develop measurable goals for sustainability performance indicators

▪ Give a structured approach to our social initiatives

▪ Create a pan-RIL system for managing organisational knowledge assets with the objective of empowering every employee with connective organisation knowledge for delivering superior performance

▪ Create a sustainability portal for e-enabling data and information collection

Long-term plan

▪ Embed life cycle and systems thinking in all business processes

▪ Reduce environmental footprint by deploying appropriate systems and technologies

▪ Move towards a low carbon business enterprise

▪ Strengthen the talent pool to cater to our diverse and integrated nature of business

▪ Create a triple bottom-line accounting system

Major Concern on Energy security, Health & safety, Corporate governance and transparency, Product responsibility, Climate change and Waste management.

Power & Energy Sector: Reliance Power

Sustainable township development in various sites Using super-critical technology and ultra super-critical

technology that enables better combustion of coal and thereby reducing the emission levels

Implementing green steps like the fly-ash collected from the plants which is further recycled

Major Initiatives

Mining Sector: Major Issues

To a great degree, minerals, forests and tribals tracts are concentrated in the same geographic areas;

The recent boom in the demand for low grade iron ore has contributed to intensifying the above issues in addition to giving an impetus to illegal mining;

Legal and regulatory loopholes and inadequate policing has allowed the illegal mining operations to flourish and grow;

More intensive use beyond sustainable limits has been contributing significant pressures on land, air, water, forests, biodiversity , especially due to the increased pace resulting from market demands and made possible through newer, improved technologies;

Mining Sector: Coal India

▪ Effective plantation in mine lease area is done to arrest propagation and dispersion of dust. ▪ CIL is having drills fitted with wet drilling and with dust extractors in some drills. ▪ The effluent from mines is treated by settling arrangements before let out. The effluent

form workshops in opencast mines is treated in Workshop Effluent Treatment Plants (WETPs)

▪ Closed water recirculation system has been adopted in the washeries to stop the discharge of effluent outside premises. The treated water is used for water sprinkling in coal transfer points, good housekeeping and plantation for overall improvement of environment.

▪ To restore degraded land and mined out areas, plantation has been done at large scale on technically reclaimed mined out areas. To make environment mitigation measures more transparent, CIL introduced state-of-the-art Satellite surveillance to monitor land reclamation and restoration for all opencast projects.

▪ Surface miners and continuous miners are being deployed which reduces air pollution and loss of valuable reserve “Coal”.

Green Initiatives

Mining Sector: HINDALCO

Sustainability Strategy and Roadmap

Management systems and assessment tools– Impact identification and assessment, baseline studies, action plans for biodiversity protectionManagement of Mining waste, sustainable ore extraction and processingWater resources management – preserving natural water bodies, addressing water scarcity, reducing water pollution, and supporting competing usesMined area rehabilitation and closureTopsoil handling procedures to enhance botanical diversity of post-mining vegetationThe overburden generated during the initial mining years is stacked at identified sites and used as a back-filling material to address the voids in the mined-out area followed by plantation activities. The company monitor the vegetation of rehabilitated mining area so as to help it become self-sustaining.Downstream units of Hindalco in India and Novelis manufacturing facilities in several countries have dedicated Aluminium recycling and remelting facilities. Company recycle process scrap from customers and scrap collected from the market together with our own process scrap.

Major Initiatives

Petroleum and Refinery Industry : IOCL Adoption of the “3-R” (reduce, reuse, and recycle)

Key InitiativesFootprinting exercise for measuring GHG emissions, water consumption, and waste generation across all business units of IOCL Rainwater harvesting All major events in IOCL are made carbon neutral by calculating the carbon emissions resulting from the event and planting of requisite number of trees to offset them Awareness generation workshops on sustainability Retail outlet/KSK Solarisation by installation of SPV modules to provide solar energy in lieu of power from diesel gensets during power outage.

Petroleum and Refinery Industry : BPCL Energy and

Climate Change

Health and Safety

Community Development

New and Clean

Technology

Water Management

5 aspects of material sustainability @BPCL

Key Initiatives Solar panel erections across locationsCompletion of carbon footprint of the Mumbai refinery20 new villages transformed from water scarce to water positiveSuccessful measurement of water & waste footprint at budge-budge complexRain water harvesting initiatives executed for an area of 387516 sq. M in multiple BPCL locations

Agribusiness Sector : ITC

ITC e-Choupal system has co-created with farmers an efficient Agri-value chain.

ITC’s Integrated Watershed Development programmeAdopting a low-carbon growth path through reduction in specific energy

consumption and enhancing use of renewable energy sourcesEnlarging its carbon positive footprint through increased carbon

sequestration by expanding forestry projects in wastelandsWorking towards minimising waste generation, maximising reuse &

recycling and using external post-consumer waste as raw material in its units

Life Cycle Assessment studies have been carried out for different products to understand the impact across the value chain.

Key Initiatives

Agribusiness Sector : Rallis India Ltd.

▪ The investor survey, customer satisfaction survey, employee satisfaction survey and community need analysis are undertaken periodically and the inputs from these are used to prepare the Annual Business Plan.

▪ The Company is in the process to identify usage (re-sue) of certain eco-friendly wastes generated elsewhere within the Company as alternate fuel.

▪ Various energy conservation initiatives were rolled out across all the manufacturing units and tangible reductions achieved mainly in electrical consumption.

▪ Environment impact assessment has been done by the development authority before declaring the industrial zones whereby protection of bio-diversity is taken care in the planning stage itself

Key Initiatives

Sustainability Reporting Practices & Trends in India

▪ The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) released by the Indian Ministry of Corporate Affairs in July 2011 highlight the need to integrate sustainability and inclusiveness into core business practice.

▪ Innovative instrument like the recently launched GREENEX at Bombay stock exchange in India is introduced to assess energy efficiency performance of companies.

▪ There are around 80 Indian companies from various sectors that have been reporting, and there are about 60 companies, who publicly declare that they follow the GRI Guidelines on almost all aspects of reporting environment, social and governance performance, although the rigour and details vary.

Proposed Initiatives in adoption of Sustainability Reporting norms▪ Recognitions of sustainable development initiatives through Award

functions will enhance public image of companies and motivate them to do more in this regard

▪ Thought leadership papers published and sustainability reporting workshops organized by industry bodies like CII and TERI plays a role in reducing the ignorance about the subject and encourage more participation. There are also industry conferences that provide a platform for partnership or innovative thoughts.

▪ Analytics combined with IT solutions facilitate easy measurement and monitoring of sustainability initiatives, making it easier for management to track and realize the benefits.

▪ Initiatives to inform businesses on the advantages of earning additional revenue from carbon credit trading will help increase the number of businesses running sustainable operations.

Conclusion

▪ Its long way to go for Indian companies to adopt sustainable development practices as per global norms.

▪ Companies like Tata, Reliance, ITC and Infosys have adopted these practices at a larger scale and paved a path for other businesses to follow

▪ As per GRI’s year in review 2009/10, 78% of GRI sustainability reports from India contain complete information relevant to the reporting organization.

▪ The initiatives adopted by the industry organizations and the government are bound to provide an impetus to the trend of adopting business sustainability as a competitive advantage.

References Articles & Papers:▪ Gupta, A. and R, Sinha. (1999), “Criteria and Indicators of Sustainability in Rural Development: A

Natural Perspective▪ Proops, L.R.J., Atkinson, G., Schlotheim, B.F. and Simon, S. (1999) “International Trade and the

Sustainability Footprint: Practical criterion for its assessment”. Ecological Economics▪ Gupta Surendra and Chaturvedi Bhartendu, “Strategies for Sustainable Development in India”▪ Kumar Praduman and Mittal Surabhi, “Agricultural Productivity Trends in India: Sustainability

Issues”, Agricultural Economics Research Review, Vol. 19 (Conference No.) 2006, 71-88Reports:▪ Brundtland Report (1987) ‘Our Common Future’▪ IUCN (The World Conservation Union), 1991▪ TERI Project Report (2000)▪ Sustainable Measures: Indicators of Sustainability; (1998-2000) -Traditional vs. Sustainability

indicators▪ BT Sustainable Development Index India Report 2008▪ Sustainably Reporting: Practices and trends in India 2012, GIZ, GmBH ▪ Sustainable Development: Emerging Issues in India’s Mineral Sector, Planning Commission,

Government of India, 2012

References Web pages▪ www.sustainablemeasures.com/indicators▪ http://www.rallis.co.in▪ http://www.itcportal.com▪ http://ccl.gov.in▪ http://www.hindalco.com▪ http://www.iocl.com▪ www.bharatpetroleum.com▪ http://www.reliancepower.co.in▪ http://www.tatapower.com▪ http://www.cxotoday.com/story/the-sustainability-factor-in-indian-businesses▪ http://www.ibef.org/india/SustainableDevelopment.aspx▪ http://www.financialexpress.com/news/mapping-how-corporate-india-is-converting-cli

mate-change-risks-into-biz-opportunities/401247/