sustainable development practices in various industrial sectors in india

7/27/2019 Sustainable development practices in Various Industrial sectors in India

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Sustainable Development: Practices adopted in a Various

Industry Sectors in India:Methodology & Data Analysis

Methodology

Analysis has been done through study of data from secondary sources mentioned below for assessment ofsustainability reporting practices.

Data source: Secondary data sources (Companies websites for sustainability reports, Articles, Industrial forum

like CII conference documents.

Project Portfolio

Data analysis has been done for four industry sectors in India with respect to sustainable development

practices adopted by different companies in chosen sectors. Project portfolio is mentioned below.

Industry Sector List of Companies

Power & Energy1.TATA power

2. Reliance Power

Mining1. Coal India Limited

2. Hindalco

Petroleum and Refinery1. IOCL

2. BPCL

Agribusiness1. ITC

2. Rallis India Ltd.

Data Analysis

Sustainable development in India

Industry wide practices for sustainable development in India encompasses a variety of development schemes in

social, cleantech (clean energy, clean water and sustainable agriculture) and human resources segments.

Pressures from various stakeholders are impelling businesses to take proactive steps to ensure sustainability in

their operations. These pressures / incentives can be from the external environment or from within the

business enterprise.The key external environmental influencers are customers and social activist groups who

are increasingly becoming anxious about the impact of businesses on the environment. To add to that, the

government has also introduced several regulatory guidelines and policies which the businesses are obligated

to follow. Some of the recent ones are releases of National Voluntary Guidelines for Social, Environmental,

and Economic Responsibilities of Business by the Ministry of Corporate Affairs and a policy mandate for

Central Public Sector Enterprises to earmark a part of their net profit for sustainability initiatives. Another

strong motivating external influence is the fact that Indian businesses, by following international sustainability

standards, can increase their attractiveness to forge partnerships with international companies. Additionally

the pressure to become sustainable comes also from within the business. Businesses are struggling to find

solutions to increasing costs of energy, water and waste management and solutions to the scarcity of natura


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resources. Any approach to reduce the effects of these on the operations processes will benefit businesses

tremendously.

Major Achievement

The number of carbon credits issued for emission reduction projects in India is set to triple to 246

million by December 2012 from 72 million in November 2009, according to a CRISIL Research study

This will cement India's second position in the global carbon credits market (technically called CertifiedEmission Reduction units or CERs). The growth in CER issuance will be driven by capacity additions in

the renewable energy sector and by the eligibility of more renewable energy projects to issue CERs.

Consequently, the share of renewable energy projects in Indian CERs will increase to 31 per cent.

CRISIL Research expects India's renewable energy capacity to increase to 20,000 megawatt (MW) by

December 2012, from the current 15,542 MW.

National Aluminium Company Limited (NALCO), the Navratna PSU, under the Union Ministry of Mines

Govt. of India, has become the first PSU in the country by implementing a pilot-cum-demonstration

project on Carbon Sequestration in its captive power plant at Angul. The project is expected to go a

long way towards addressing the issue of bringing down GHG( Green house gases)

The contribution of renewable energy to the power business in India has now reached 70 per cent,

compared to 10 per cent in 2000, in terms of project numbers and dollar value.

Business Sustainability Initiatives

Various companies in India are using sustainable operations to optimize their processes, with a view to taking

advantage of the increase in revenues, reduction in costs and avoidance of regulatory risks. Below table enlists

some of the major initiatives taken by sustainable businesses in selected industries.

Table: Sustainability initiatives by selected industries

Industries Major Sustainable Initiatives

Automotive 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 hybridvehicles 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

As per the project portfolio, qualitative data analysis has been done for Sustainable Development Practices

adopted in a Industry Sectors in India namely Power & Energy, Mining, Petroleum and Refinery and

Agribusiness.


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Power & Energy Sector

TATA Power

Tata Power, India's leading power company has been awarded Sustainable Plus, the world's first corporate

sustainability label by Confederation of Indian Industry (CII). Based on a methodology that is globally

recognized and suited to Indian markets, the company has been recognized as Sustainable Plus in the Gold

category by CII.

Tata Power has always set a standard in adopting sustainable practices in business. In fact, it has accepted

sustainability challenge in a broader sense, wherein sustainability encompasses a much wider spectrum of

behaviour and resilience towards environmental, social, and financial factors. The Sustainability Policy of Tata

Power integrates Economic progress, social responsibility and environmental concerns with an objective of

improving quality of life.

Tata Power has tied up with various institutions involved in research in the renewable energy space, piloting

projects in geo thermal energy, solar concentrators, biomass gasification and more. Through these initiatives

the Company seeks to empower the green economy. Tata Power continued its strides towards making the

business operations more sustainable through participating in the Combat Climate Change (3C) initiative that

takes the holistic view of climate change issues.

Sustainability Strategy

Tata Power Sustainability Strategy covers four key elements, drawing reference from the well established

triple bottom-line concept (profit, planet and people).

Economic: The economic well-being and prosperity of the organization both today as well for the

future to remain a relevant player in the industry and country

Environmental: The environment footprint of the organization in terms of GHG emissions, water

consumption and discharge, SO2, NOx and particulate matter, etc.

Social: Promoting well-being in the community and society that the Company operates

Cultural: Create a culture in and out of the organization which can keep its people connected to values

Sustainability Model: The Sustainability Model of Tata Power covers the entire range of Stakeholders. Tata

Power has instituted Care as one of the values in the organisation which entrust Care for Environment, Carefor Community, Care for Customers, and Care for People i.e. employees, shareholders, suppliers, partners etc.


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Initiatives

Tata Power has installed Rain water harvesting systems and Sewage Treatment plants at all locations

Zero discharge systems are proposed at all locations. Tata Power plant expansion of projects with

optimum utilization of existing infrastructure and reuse, recycle water to the extent possible. Water

availability is one of the main criteria for selection of site for new projects.

Tata Power is committed to reduce its CO2 intensity thus reducing the footprint of its operations on

the environment. This is line with the strategic intent of generating 20-25% power from non carbon

emitting sources. This is further facilitated by revolutionary initiatives like Club Enerji, which is a

nationwide movement to educate the youth on measures of Energy Conservation. Greenolution is also

one such Brand initiative to Tata Power that drives and motivates employees to take environmentalinitiatives and rewards good initiatives and their initiators are entitled as Green Heroes.

The Company follows several charters, principles and other initiatives related to Sustainability. Various

charters/ principles have been voluntarily adopted by the stations at different points of time and

subsequently renewed as per their specific requirements. Some of them are: ISO 9001, ISO 14001,

UNGC(United Nations Global Impact), CDP UK ( Carbon disclosure project)

GHG emissions are tracked regularly and Carbon footprint assessment is conducted annually to

compare trends from previous years and to accept targets to reduce them. Carbon Foot printing is

done as per the WBCSD guidelines, ISO 16040.


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Different initiatives are taken to strengthen Biodiversity in and around locations, which includesConservation of Endangered Mahseer Fish, Sea Turtle Monitoring Project, Trombay as an Important

Bird Area (IBA) etc.

Green IT initiatives are also taken which includes Virtualization, Adoption of the Cloud computing

Enforcement of Power saving mode (Hibernation) through Domain Policy etc.

Reliance PowerReliance Power has adopted principle of materiality and prioritized key issues after collective deliberation by

management and key stakeholders. These issues include; Energy security, Health & safety, Corporate

governance and transparency, Product responsibility, Climate change and Waste management.

To ensure energy security, company has been engaged in exploration & production of oil & gas is to ensure

energy availability for India, minimise dependence on imported crude oil and reduce exposure to vagaries of

crude oil prices. Natural gas - a low-carbon, low polluting green fuel would be transformational initiatives to

promote use of alternative energy.

Through annual environment plan and business targets, company identify projects and take action to reduce

water consumption and become carbon neutral and achieve maximum possible recycling and reuse of wastes

Company sets targets for key environment-related performance indicators such as material intensity, GHG

emissions, air quality, water consumption, effluent discharge, waste generation and disposal, and

conservation of bio-diversity.

Strategy Milestones

Made significant investments in E&P of O&G to secure energy supplies

Implemented systems to monitor and measure sustainability performance

Introduced sustainability awareness programmes in the intranet

Formed the Reliance Innovation Council

Sustainability report assured by an independent assurance provider

Roadmap

Companys short-term and long-term plans of achieving excellence in sustainability initiatives are as below:

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


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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

Environmental Initiatives

Strategies are in place for sustainable township development in various sites of Reliance Power by

designing structures with minimum disturbance to the topography and ecology. The various steps

towards building an eco-friendly composition are Rainwater harvesting, Solar heating for public

buildings, Use of energy efficient building material , Use of lead free paints, Treatment of sewage water

and reuse for landscape and irrigation purpose

The company would be using super-critical technology and ultra super-critical technology that enables

better combustion of coal and thereby reducing the emission levels apart from the Flue Gas-De-

sulphurisation plant that reduces sulphur dioxide emissions in flue gas. For some sites of Reliance

Power, we would be using imported coal with low ash content. Moreover to limit ground level

concentration of pollutants, the chimneys are being made taller at all our plant sites.

The company is also involved in implementing green steps like the fly-ash collected from the plants

which is further recycled for use by using it in manufacture of concrete bricks. Environmenta

sanitation with special emphasis on solid waste management, waste segregation and vermin-

composting is practiced at site locations.

Mining SectorThe Indian mining sector has been facing severe criticism on several issues relating to its performance vis--vis

sustainable development. Some issues highlighted are:

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;

There is a framework to be adopted by mining sector in India , which is Sustainable Development Framework

(SDF) modelled by International Council of Mining and Metals (ICMM)/ International Union for the

Conservation of Nature and Natural Resources (IUCN).


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The SDF (a framework approach), takes into account the biggest issues facing the sector in the context of

existing laws and regulations and defines a set of principles that collectively progress the sector towards

sustainable development.

SDF Principles

Coal India Limited

CIL operates through 81 mining areas spread over 8 provincial states of India. Coal India has 462 mines of

which 270 are underground, 169 opencast and 23 mixed mines.

The company has adopted a Corporate Environment policy, duly approved. Before

commencement/enhancement of production from coal mines, the impact on existing environment and forest

due to coal mining projects are assessed by an Environment Impact Assessment (EIA) study for each project

and based on the same, Environment management plans (EMP) are prepared.

EMPs deal with the various pollution mitigation measures to be undertaken to mitigate the impact of

pollution, in order to reduce adverse effect on environment & forest, as per the requirement of the project

The EMP is submitted to MoEF for obtaining Environmental clearance (EC). Various types of pollution and

measures for mitigation as per EMP of the coal project approved by MoEF with project specific conditions are

taken up for implementation.

Various pollution control measures taken by Coal Indian are as follows:

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)


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Closed water recirculation system has been adopted in the washeries to stop the discharge of effluentoutside 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 an loss of

valuable reserve Coal.

HINDALCO

Hindalco Industries, part of the Aditya Birla Group, is a metals powerhouse, and among the worlds most cost

efficient aluminium and copper producers. In Aluminium, it has business presence in Alumina Chemicals,

Primary Aluminium, Aluminium Extrusions, Aluminium Rolled Products, Foil and Packaging. In Copper, the

primary products are Copper Cathodes and Continuous Cast Copper Rods. The Copper business is also

associated with recovery of precious metals as well as using process waste to produce useful products such as

acids and fertilizers.

The commitment to sustainability is supported by the apex level management. The Company embraces a

topdown approach that gives direction and bolsters efforts. The following are the bodies responsible for

sustainability performance of the company at various levels:

Sustainability Governance Structure at Hindalco


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Hindalco has been consolidating our ongoing work in material sustainability aspects such as Energy, EHS,CSR

and People, so as to build a coherent framework for sustainability.

Sustainability Strategy and Roadmap

The Working Committee on Sustainability, in place at Hindalco, did a materiality assessment exercise to

identify the most significant sustainability issues affecting our business and our stakeholders .These issues

were then discussed with the Unit level Team members for their inputs and incorporation in their

sustainability initiatives / targets.

Initial List of Material Issues Identified by Hindalco Team


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Sustainable Mining Practices

Resource sustainability in the minerals and metals sector is a key challenge. Company has undertaken a

holistic approach to address the multi-dimensional facets of resource sustainability which reflects the materiaissues faced by us throughout the value chain. Starting from sustainable mining practices to ensuring long

term access to our raw material requirements, it ensures that our approach is sustainable and takes into

account stakeholder interests.

Some of the sustainable mining practices adopted at Hindalco are as follows:

Management systems and assessment tools Impact identification and assessment, baseline studies

action plans for biodiversity protection

Management of Mining waste, sustainable ore extraction and processing


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Water resources management preserving natural water bodies, addressing water scarcity, reducingwater pollution, and supporting competing uses

Mined area rehabilitation and closure

Topsoil handling procedures to enhance botanical diversity of post-mining vegetation

The 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.

Petroleum and Refinery Industry

IOCL

Economic, Social & environmental goals are guiding force behind IOCLs commitment to build a strong

sustainable business that is firmly rooted in the community and demonstrate concern for the environment.

The Renewable Energy and Sustainable Development Department has been set up at corporate level with

designated nodal officers at divisional level to drive & implement the sustainable development action plan.

The main objectives of this plan are to minimize GHG and the emissions from operations, making Indian Oil

water positive and responsibly managing the waste. Efforts are being made to improve resource efficiency inoperations, especially for key resources like energy and water and adopt the 3-R (reduce, reuse, and recycle)

philosophy for all types of waste.

Key Initiatives undertaken by IOCL for sustainable development are as follows:

Footprinting 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 themAwareness 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.


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BPCL

BPCL continues to forge ahead on its path to becoming a national and global leader in the space of providing

responsible energy to meet the country's energy needs. Compliance with regulatory requirements of the

Government of India during all BPCLs operations and throughout our value chain is the bedrock of its

sustainability philosophy.

BPCL successfully implemented six Sustainable Development projects in accordance with the Department of

Public Enterprises (DPE) guidelines during the year 2012-13. BPCL has taken the lead in establishing operations

in compliance with industry and national regulatory requirements by targeting to minimize waste generation;

reduce water consumption; encourage water neutrality at units and utilization of solar energy at its units.

BPCLs Dream Plan, introduced in 2010, encapsulates our business strategy on economic, social and

environmental aspects. The Dream Plan identified strategic and material issues that need to be addressed by

different functions and SBUs to realize the vision created for the company by 2015.

As part of the strategic planning exercise undertaken while formulating the Dream Plan, BPCL has identifiedthe following five material sustainability issues for our businesses and have focused our efforts for the last

three years in these areas.

Key targets and initiatives are depicted below:

Energy andClimateChange

Health andSafety

CommunityDevelopment

New andClean

Technology

WaterManagement


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Agribusiness Sector

Sustainability Issues

The sustainability issue of the crop productivity is fast emerging. The post-Green Revolution phase is

characterized by high input-use and decelerating total factor productivity growth (TFPG). Producing additiona

food with limited land, and providing economic access to food at the household level for ensuring food

security would continue to be a major challenge for the nation.

At the farmers level, sustainability concerns are being expressed that the input levels have to be continuously

increased in order to maintain the yield at the old level. This poses a threat to the economic viability and

sustainability of crop production.

The problems of waterlogging and soil salinity may develop sooner or later in many irrigation project areas

due to over-irrigation and deep percolation and seepage losses in the absence of a suitable drainage system.

The problem is likely to aggravate further in future if proper soil management practices, including provision of

suitable field irrigation channels and drainage system, are not undertaken. Due to the degradation problems,

growth in TFP has not made headway across a substantial area of the country for major food crops.

ITC

ITCs vision to serve larger national priorities is realised by this strategic approach of embedding sustainability

in its core business models. Innovative strategies have been designed and implemented to create sustainable

value chains linked to its businesses that encompass some of the most disadvantaged sections of society

especially those residing in rural India.

Initiatives for sustainable development

ITCs atta (wheat flour) brand, Aashirvaad. The ITC e-Choupal system has co-created with farmers an

efficient agri-value chain that enables identity-preserved procurement lending a unique source of

competitive advantage to the Companys Foods businesses. Farmers gain from ITCs agri-extension

services that impart know-how for increased productivity, efficient market linkages as well as from the

growing market share of Aashirvaad. At the same time, ITC derives gains from an efficient supply of

quality raw materials. The ITC e-Choupal has benefitted over 4 million farmers in 40,000 villages and

significantly raised rural incomes.

Recognising that water stress is a major crisis impacting agricultural production and livelihood of

farmers, ITCs Integrated Watershed Development programme has enabled soil and moisture

conservation covering 1,16,000 hectares providing precious water resources. As a result, farmers are

able to get additional crops in areas that are mostly rainfed enhancing their incomes substantially.

Given the success of these programmes, several State Governments and the National Bank for

Agriculture and Rural Development (NABARD) have engaged with ITC on such watershed projects in

public private- people partnership, multiplying livelihood opportunities as well as enhancing agri-

productivity and rural incomes. These programmes together with the Social & Farm Forestry initiative

also add to eco-restoration through rainwater harvesting, top soil conservation and large scale carbon

sequestration.


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ITC is continuing to engage with policy makers through industry associations, organisations and otherappropriate forums for enabling a balanced and pragmatic policy framework that not only removes

restrictive conditions on the efficient functioning of agri businesses but also facilitates the

establishment of market-based institutions that can raise agricultural productivity and optimise

transaction costs across the value chain.

Adopting a low-carbon growth path through reduction in specific energy consumption and enhancing

use of renewable energy sources.

Enlarging its carbon positive footprint through increased carbon sequestration by expanding forestry

projects in wastelands

Reducing specific water consumption and augment rainwater harvesting activities both on site and off

site at watershed catchments areas

Working 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. Resource efficiency is integrated into product and process design and is

addressed in the creation of physical infrastructure, the operations phase, logistics and waste

management

Rallis India Ltd.

Rallis has an enviable record in the Pesticides Industry. The Company's distribution network and reach into the

rural markets, supplemented by the high quality products and an abiding concern for our customers coupledwith environment protection, are all major assets. A three tier system exists in the Company for managing its

sustainability:

At the Board level, which sets the policy.

At the Senior Management level in Corporate and at Units, which develop the implementation plan for

the policies

At the Unit level, which implements various action plans

The action plans and their implementation are continuously reviewed at the Board level quarterly and at the

Plant level monthly. The Company has integrated environmental management in its business plans. All capitainvestment proposals are cleared with an environmental assessment and necessary environmenta

investments are included.

Rallis recognizes that agriculture is at the heart of human existence where economic, social and environmenta

considerations intersect, encompassing critical economic and political choices, rural management,

development & poverty reduction and resource imperatives.

Major initiatives for sustainable development undertaken by Rallis India Ltd are as follows:


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Rallis defines its key stakeholders as the various groups who are affected, or who affect theenterprise's effect on the biosphere and on social capital. Through stakeholders engagement

feedback inputs received from various stakeholders on disclosure of information is fed into the

envisioning, strategic planning and action plan development exercise.

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 Annua

Business Plan which is finalized by month of March every year for implementation with effect from 1st

of April.

The Company has participated with the community to build infrastructure around the manufacturing

locations keeping in mind the obligation to the affected society at the neighbourhood.

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. Promoted by the achievements, Turbhe &

Ankleshwar units participated in the National Energy Conservation Award with the result.

All units engaged in the manufacturing activity are located in notified industrial areas and thus not

affecting the bio diversity or any flora and fauna of the neighbourhood. 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.

sustainable development practices in various industrial sectors in india

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