Accelerating Action on Energy & GHG Management

Transcription

1 Accelerating Action on Energy & GHG Management Baseline Report on best practices Six industry groups in 4 sectors (Power, Automobiles, Construction & Engineering, Oil & Gas, Paper & Pulp, Metals & Mining) Government leading the way with low carbon focus in 12 th Plan with a view to reduce energy intensity by 20 to 25% by 2025 Market Analysts project market for low carbon goods & services will increase 5-fold by 2020 Perceptible change on climate change initiatives within industry Activities now being seen as investments rather than an expense 1

2 India 200 Overview Sector Consumer Discretionary Consumer Staples Bharat Forge Cummins India Godrej Industries Indian Hotels Co. Colgate Palmolive India GlaxoSmithKline Consumer Health Hindustan Znilever Ltd. Company Name Maruti Suzuki India Ltd. Tata Motors Titan Industries Mahindra & Mahindra Godrej Consumer Products ITC Ltd. Nestle India Tata Global Beverages Energy Cairn India Indian Oil Corporation Ltd. Essar Oil Financials ICICI Bank Ltd. IDBI Bank Ltd. IDFC Ltd. IndusInd Bank HDFC Bank Ltd. Power Finance Corp. Mahindra & Mahindra Financial Services Reliance Capital State Bank of India YES Bank Healthcare Dr. Reddy s Laboratories GlaxoSmithKline Pharmaceuticals Industrials ABB- Asea Brown Bovari Crompton Greaves Jain Irrigation Systems Larsen & Toubro Siemens India Suzlon Energy Information Technology Materials Utilities HCL Technologies igate Patni Infosys ACC Ambuja Cement Castrol India Hindustan Zinc Alstom Projects India Tata Power Tata Consultancy Services Tech Mahindra Wipro Sesa Goa Sterlite Industries Tata Chemicals Tata Steel GVK Power & Infrastructure India 200 Overview Total 53 1 responding companies from India 12% (5) of the respondents included in the sample for the first time or have disclosed for the first time Responding Privately to CDP Year on Year India Response Status Total Companies responding to CDP % (32) of the 16 respondents have been regularly disclosing since Responding Publicly to the last three years or 31 CDP 31 more

3 Key Statistics - Governance Who is responsible? 91% (39) companies have stated that the Board or a committee appointed by it or a senior officer has been appointed for dealing with climate change. Performance statistics related to climate change governance Board or other senior management oversight* Rewarding climate change progress Demonstration of climate change being integrated into overall business strategy Disclose Absolute Targets Percentage of responding companies 57% 29% Rewards for climate change governance-sector wise 33% Monetary incentives 67% 100% 50% 10% 100% Other Incentives 25% 75% 67% 67% 29% 71% 100% Disclose Intensity Targets CD CS EGY FIN HC IND IT MAT UTIL Key Statistics Identified Risks Regulatory Risks: NAPCC (National Action Plan on Climate Change), PAT Scheme (Perform, Achieve and Trade), Future emission reporting regulations (leads to increased operational costs, monitory penalties in case of non-compliance) Physical Risks: Changes in precipitation extremes, droughts and sea level rise, induced changes in natural resources, tropical cyclones, hurricanes and typhoons (leads to disruption of services/operations, loss of business and revenue) Other Risks: Changing consumer behavior, fluctuating socio-economic conditions, increasing humanitarian demands, induced changes in human & cultural environment (leads to risks to brand image, loss of business if seen as negligent) Percentage of companies perceiving risks due to climate change Regulatory Risks Physical Risks Other Risks 3

4 Key Statistics Identified Opportunities Regulatory opportunities: National Mission on Enhanced Energy Efficiency (NMEEE), National Solar Mission (NSM) and Renewable Energy Certificates (RECs), product labeling regulations & standards, voluntary and international agreements and general environmental regulations (lead to financial benefits in low-carbon business) Physical Opportunities: Climate change induced events (gives business opportunity to diversify and overcome limitations posed by climate change ) Other Opportunities: Increasing consumer awareness towards low carbon products and sustainability (companies addressing climate change issues stand a chance to win goodwill of the customers) Percentage of companies perceiving opportunities due to climate change Regulatory Opportunity Physical Opportunity Other Opportunity Key Statistics - GHG Disclosure Emissions reported over the years Scope 1 Scope 2 Scope 3 GHG Disclosure: Percentage of companies disclosing emissions: 91% (39) The scope 2 emissions have decreased by 60% compared to 2010 and 32% compared to 2011 Only 7 companies have verification /assurance approved GHG disclosure trend Number of companies

5 Key Statistics - Scope 3 Emissions The emissions from Scope 3 1 in the year 2012 are 1.99 million metric tons of CO 2 e (2% of the total GHG emissions) Overall 12 emission categories (with quantitative emissions data given) have been reported 16 Number of companies reporting Scope 3 categories No. of Companies Category name No of responding companies Business travel 19 Downstream transportation and distribution Employee commuting 13 Fuel & energy related activities 2 Purchased goods and services 3 0 Categories 1 Categories 2 Categories 3 Categories 4 Categories 5+ Categories Upstream transportation and distribution 5 Waste generated in operations 4 Other 5 Absolute & Intensity Targets Targets Emissions intensity reported in terms of revenue as well as FTE were found to be high with 81% (34) and 74% (31) of the respondents reporting for the same respectively Number of companies reporting More companies have started taking targets (absolute/intensity related to GHG reduction) to deal with climate change In 2012, 12% (5) of the responding companies reported absolute targets, compared to 2% in 2011 % of companies disclosing targets Intensity target Absolute target Absolute and Intensity targets 5 In terms of revenue/sales In terms of full time employee In terms of output or product type Others No target Not answered

6 Carbon Disclosure Leadership Index Sector Company Name Disclosure Scores Information Technology Wipro 95 Utilities GVK Power & Infrastructure Consumer Staples ITC 82 Consumer Discretionary Mahindra & Mahindra 82 Information Technology Tata Consultancy Services Consumer Staples Tata Global Beverages 78 Financials ICICI Bank Limited 74 Industrials Larsen & Toubro 73 Materials Tata Chemicals 73 Materials Tata Steel 73 Financials Yes Bank Limited 73 Materials ACC CDLI Highlights The average CDLI score has gone up by one to 78 in The highest disclosure score is 95 in 2012 as compared to 86 in 2011 This indicates increased level of transparency and quality of information The 2012 CDLI comprises eight sector leaders with 3 each in IT, Materials and Financials Energy Essar Oil 72 Information Technology Infosys Limited 72 Financials HDFC Bank Ltd 71 Materials Sesa Goa 70 Good Practices Examples Wipro Wipro has started an IT-based Energy Management program that will minimize energy leakages and enhance overall efficiency Mahindra & Mahindra It has implemented various energy saving initiatives like integrated solar and heat recovery projects for paintshop, modification of blower fans, installation of efficient water cooled chillers, etc. GVK Power & Infrastructure GVK operated Chhatrapati Shivaji International Airport, Mumbai is certified under ISO for the implementation of GHG accounting and management system in March 2012 ITC LEED certification is being done for all the new hotels that are constructed by ITC TATA Global Beverages In 11/12 the Eaglescliffe factory of TGB reduced its waste to landfill to 1.2% and had taken a target to achieve 0% to landfill by July

7 CDP India CDP India Directions & Future Plans 2012 Report Special Best Discloser of 2012 WIPRO 1. More detailed information on Governance. 2. Thorough response regarding emissions reduction initiatives. 3. Detailed quantification of the climate change risks and opportunities. 7

8 Best Improvement Mahindra & Mahindra 2012 Disclosure Score: Disclosure Score: 53 How Did Mahindra & Mahindra Improve Their Response? 1. Details of intensity target (in metric tons Co2e/unit of production). 2. New emissions reduction initiatives leading to CO2e and monetary savings. 3. Potential financial implications of climate change risks and opportunities identified. 4. Verified and assured Scope 1, 2 and 3 emissions. 8

9 Best New Companies in CDLI ITC and L&T ITC Limited 2012 Disclosure Score: Disclosure Score: 64 Larsen & Toubro 2012 Disclosure Score: Disclosure Score: 69 Best New Companies in CDLI ITC Limited 1. Higher use of renewable energy sources from , 38.5%, compared with 35.3% from Goal set at 50%, for share of renewable energy as part of total energy use. 3. More thorough answers to emissions reduction initiatives questions. 9

10 Best New Companies in CDLI Larsen & Toubro 1. Intensity Target introduced in Emission Intensity Reduction Targets for Scope 1, Scope 2 and targets for energy consumption reduction. 3. On-going target for energy conservation, as part of corporate sustainability strategy. Best New Discloser of 2012 Suzlon Energy 2012 Disclosure Score: 66 10

11 Best New Discloser of 2012 Suzlon Energy 1. Climate change risk integrated into Suzlon s business strategy 2. Suzlon is the fifth largest wind turbine supplier, decreasing over 37 million tonnes of carbon emissions every year. a. Campaigns, such as the Pure Air Lovers Society (PALS) have been widely received 3. Short and long term strategy focus on, first with participating countries and then with international bodies, such as the United Nations Framework Convention on Climate Change (UNFCCC). Market Drivers BSE Carbonex: CDP data partner Newer regulatory drivers -- PAT scheme; SEBI s BRR (Business Responsibility Report), amendment to Companies Bill Challenge of Integrating CDP with GRI, PAT & SEBI BRR, to reduce reporting burden Joint outreach & workshops Expect BSE CARBONEX to help promote active disclosure of non financial information & provide investors with a reliable benchmark for low carbon strategies. Companies who are proactive in their vision and operations with regard to climate change will find it easier to raise funds in the international market S Ramadorai, Chairman BSE Ltd & Vice Chairman TCS 11

12 CDP Cities Cities Proposal Ministry of Urban Development Target Pilot with 2 or 3 cities, approached already Office space courtesy of JLL + collaboration Vital component Other Responding Companies Bharat Aluminum Company Limited (BALCO) Essar Power Essar Steel Godrej Interio Division - Godrej & Boyce Mfg. Co. Limited IL&FS Transportation & Networks Kansai Nerolac Paints Limited Lawkim Motors Group -Godrej& Boyce Mfg. Co. Limited MindTree Limited Satyam Computer Systems Shree Cements Limited MAS Holdings-Sri Lanka 12

13 Disclosure by an ORC Essar Steel On Demand -- Disclosure score: 79 Disclosure by an ORC Essar Steel 1. Essar Steel has implemented various emissions reduction initiatives leading to an estimated annual CO2e savings of 154,463 metric tons and monetary savings of Rs crores. 2. Essar steel anticipate earning opportunity by achieving beyond their targets with respect to the Perform, Achieve and Trade (PAT) mechanism. 3. Verified and assured scope 1, 2 and 3 emissions If emission reporting becomes mandatory, Essar Steel is more likely to get an advantage over competitors being one of the least energy intensive steel makers. EStIL can lead the market by developing and supplying energy-efficient steel. Moreover Corporate competitiveness can be raised by developing breakthrough technologies. 13

14 ORCs Bharat Aluminum Company Ltd. (BALCO) 2012 Disclosure Score: 73 ORCs Bharat Aluminum Company Ltd. (BALCO) 1.Climate change incorporated in Balco s business strategy & all employees receive incentives for climate change targets 2.Sustainability and Climate Change related risks form an essential part of the risk management process 3. Absolute Targets have been identified for Scope 1 and Scope 2 emissions 4. Climate change risks and opportunities have been identified. 5. Verified and assured scope 1, 2 and 3 emissions. 14

15 A Big Thank You CDP India incorporated in 2012, first grant on Nov 30 from Hemendra Kothari Foundation MOUs & LOAs with BSE, WWF India, CII-ITC CESD Advisory Board member Rohini Nilekani Outreach Momentum media visibility, presenting in conferences 15