Taking Climate Action by Setting a Science Based Target (SBT)

Transcription

1 Taking Climate Action by Setting a Target (SBT) Mahindra Sanyo Special Steel Pvt Ltd. Khopoli Project details Taking Climate Action by Setting a Target (SBT) New Concept. Started in Till date, just over 400 companies have committed globally [ including 6 from India ] to setup Target for their business. Mahindra Sanyo is the 1st Steel Company from India & 3rd Steel Company Globally to commit to setting up target for its own business. Project conceptualized at Senior Management Level Drivers for setting up SBT Cost Competitiveness Become preferred supplier Managing ESG Risk & Opportunities in Value Chain New Revenue Streams Access to Capital Safeguard future Committed to set Target March 2017 Developed Target September December 2017 Submitted Target for Quality Check December 2017 profitability Approved and Announced Target March

2 Benefits of Project Market-based scope 1&2 Absolute pathway Absolute Emissions (tco2e) Increase in Production Drivers for setting up SBT Market-based scope 1&2 Intensity pathway 2.00 Emissions Intensity (tonnes CO2e/tonne) Mahindra Sanyo intensity pathway Sector Pathway Benefits of Project Tangible + Non-tangible Environmental Social Economic Emission reduction of more than 1 million tco2e Along with a host of other intangible environmental benefits People/society benefits Moral/motivation Skill upgradation Attitude shift/development Increase innovation Reduce regulatory uncertainty Strengthen investor confidence and credibility Improve profitability and competitiveness Savings of 145 Crore till date 2% Improvement in Specific Electricity Consumption 3% Improvement in Specific Scope 2 emission 4% Power from Renewable Energy Source 2

3 Employee Involvement 16 Aspect Teams work towards achieving Target These teams include around 150 Executives from across the Organization They all are trained on Target Initiative Employee Involvement at all levels of the project Apart from the routine job responsibilities team members feel included into organizational growth in a huge way Contributing to reduce Global Warming is the major motivator for all Replication Potential within group and companies Taking ambitious action now helps companies stay ahead of future policies and regulations to limit GHG emissions. Companies that are seen as leaders are better able to influence policy makers and help shape developing legislation. Huge replication potential Universal application: Target applicable to all sectors and types of businesses Methods of calculation: Methods are available to calculate SBT for all sector Replication potential of project within sector: Steps initiated: Awareness session on SBTi within the company and across the group Achievement sharing Mode:Presented case of SBTi in different seminars organized by WRI and CDP Based on MSSSPL s success 10 Mahindra Group companies committed to set Science Based Target for their Business in May 2018 We have started engaging our Supply Chain to encourage them to adapt SBTi 3

4 Challenges faced Challenges faced Less experience in working out how to get these targets right Understanding of applicable Scope III emissions categories for an organization Availability of information required for target setting Benchmarking against competitors to put proposed targets in context Engagement with stakeholders to explain proposed reduction measures and get their input on what is practical. Action Taken Conducted awareness session for internal team from WRI India Performed Scope 3 screening for Mahindra Sanyo operations. Educated the teams and made them understand the importance of SBT Still a challenge but as the world moving ahead improving transparency will help us Regular interactions, materiality assessments involving all stakeholders and audits(in case of suppliers) get the reductions proposed Achieving National Benchmark.. Mahindra Sanyo is the 1st Steel Company from India & 3rd Steel Company Globally to commit to setting up target for its own business. This initiative helps MSSSPL contribute to achieve INDC (India's Intended Nationally Determined Contribution UNFCC(United Nations Framework Convention on Climate Change)) and to keep Global Temperature increase below 2 degrees SBTi implementation will help company to meet Renewal Purchase Obligations. Currently Mahindra Sanyo isn t part of PAT (Perform, Achieve and Trade)Scheme, but in future we will be part of PAT Scheme whenever applicable through SBTi implementation. Alignment with SDG 7, SDG 13, SDG 17. 4

5 Priority plans Climate Policy aligned with Sustainability Policy Create awareness on Target among the employees Embed Target in our roadmap of following aspects By 2023 Electricity Consumption Oil Consumption GHG emissions Resource Intensity and Recycle Inputs Sustainable Supply Chain Leverage New Technology Use Renewables and recover Waste Heat Contribute towards a Circular Economy Carbon capture for manufactured products: New revenue stream Collaboration in the value chain to reduce emissions - Public Advocacy : work with government and regulators to incentivize Climate Action - CE Top Best Practices Conversion of reheating furnaces from furnace oil / electrical to Natural Gas powered furnaces Change in input raw materials ex: recycled scrap replacing pig & sponge iron Elimination of downstream subtractive processes: 3D and net shape In the labs Bulk Nano technology: no extractive alloys for achieving properties Carbon-Oxygen injector for Electric Arc Furnaces Electrolysis and energy input from Renewables 6 MW Solar Power through Open Access Installation of 4 MW Solar roof top panel Wind Power through Open Access 5

6 Major takeaways Taking ambitious action now help us to stay ahead of future policies and regulations to limit GHG emissions and setting up Targets is a important and effective way to achieve this with ease. Companies that are seen as leaders are better able to influence policy makers and help shape developing legislation which makes it important for such companies to adopt innovative solutions like Targets and set an example for other companies to follow and eventually make this practice a norm. This initiative helps MSSSPL contribute to achieve INDC (India's Intended Nationally Determined Contribution - UNFCC) and to keep Global Temperature increase below 2 degrees Fasten your seat belt We will now ride the curve of Moore s Law on Carbon Halving emissions every decade and increasing carbon capture leads to zero emissions in 2050 (gigatonnes CO2) 6