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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.
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