Cairn Global Ehs Conference

8/13/2019 Cairn Global Ehs Conference

1/27

Climate Change - Role of Indus try


2/27


3/27

What is the limiting Factor ?

Finite Resources- Supportive Capacity of

resources??

OR

Finite Assimilative Capacity ??


4/27

Climate Change is REAL

being monitored to calibrate

action

Politically agreed to limit the rise to 2oC

over pre-industrial levels .

National climate mitigation

commitments still fall short by a gigaton.

In pre Durban (December 2011)

meetings, the nations have agreed to

monitor , analyse, review and calibrate

action


5/27

Emission Reduction Commitments

Canada ETS (2013)

17% of 2005 by 202

0Dependent on US

legislation

Domestic voluntary

markets covering power

and industry

Brazil*

36-39% BAU

by 2020

US (2012)

17% of 2005 by 2020

Federal or state initiatives like

RGGI/ WCI/ AB 32

Sectors covered

Power,

Industry,

upstream oil and gas- later

Transport- 2015

EU ETS (2005)

20% or 30% (conditional) of

1990 by 2020

Power & Industries

Sustained volumes till 2012

India *

20-25% GDP

emission intensity

of 2005 by 2020

Emissions

intensity based

commitment

China *

40-45% GDP emission

intensity of 2005 by

2020

Emissions intensity

based system

NZ ETS (2010)

10-20%

(conditional) of

1990 by 2020

Transport,

Energy, IndustryAgriculture

(intensity based)-

2015Low

Medium

High

Level of ambition againstBusiness as Usual (BAU)

South Africa*

34% BAU by

2020

Australia ETS (2011)

5% or 15-25% of

2000 (conditional) by

2020

Power, industry,

transport

Japan ETS (2011)

25% (conditional) of 1990 by

2020

EU ETS like scheme by 2011.

Regional system for office

buildings

S. Korea (2010)

4% of 2005 by

2020

Power, Industry

Indonesia*

26% BAU by

2020

Russian Fed

15-25% of 1990

by 2020

* Voluntary in nature

Source of Commitments: UNFCCC


6/27

Climate Regulations


7/27


8/27

Country Climate Legislations


9/27

Financial Markets Exceed Carbon Budgets Several Times


10/27

Spectrum of Possibilities

Increased

efforts in GHG

emission

mitigation.

Promotion ofrenewables,

energy efficiency,

green tech and

green fuels.

Domestic Regulations

and Markets

Bilateral and Multilateral

fungibility

International

funding for GHGmitigation.

International Agreement

with binding

commitments and GHG

emission reduction is a

commodity and isglobally fungible.

CertainUncertain


11/27

Corporate Actions are still.

Decisions driven by short term return" on capital investment

Initiatives driven "bottom up" with line managers or divisions.

Wait till scenario is clear..Not too soon

Good to do" . good corporate social behaviour

Not integrated or loosely integrated to short and long term

organizational planning.


12/27

Shortcomings of Classic Corporate Actions

Opportunistic approach in response to developing regulations

For the time being BaU.too late to respond!

Assets, liabilities do not capture climate related valuation/

devaluation. Lacks methodical approach to capture climate impact in return of

investment projections.

Lack of system to methodically and continually apportion value

erosion because of climate impact (climate impact is like a step

curve).

Lacks systematic approach to unearth carbon asset identification.


13/27

Good Corporate Response to Climate Change

Embedding climate consciousness in investment planning

Development of an integrated systematic approach to treat

climate related assets.

Development of a corporate view on evolving climateregulation.

Establishing a feasible, long-term, credible climate strategy.


14/27

Good Practice

Understand the impact of your value chain: Reduce, reuse and

recycle You can choose metrics to manage resources better and enhance

toplines: Efficient systems and processes (power usage, transport,material usage, water, etc)

Lead by example: set the benchmarks for sustainability, get ahead

of the curve. Innovate, Innovate, Innovate: Use technology and existing policies

to your best advantage.

Create commitment levels across the board for long term actionplans and continuous monitoring and measurement.

Giving back to the society: CSR projects, forestry projects, CSRfoundation, support a voluntary carbon project.


15/27

Corporate Climate Steward- A Case


16/27

Roadmapto carbon/water neutralityInclusion of carbon and

water positivebusinesses in theportfolio

Generate carbon andwater reduction in thevalue chain

Utilise availablerenewable energy in theoperations

Chose Communityintervention to generatecarbon and water offsets

Offsetting emissionsthrough externalprojects/purchases


17/27

Carbon offsetsFY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

Net

Emissions

tCO2

104926 87761 92149 96757 101594 106674 112008 117608 123489

Micro

irrigation9261 11113 13336 16003 19204 23044

Watershed 20000 25000 35000 40000 40000 40000

Land

managem

ent

4000 4000 4400 5500 6600 7920

Total

offsets

available

33261 40113 52736 61503 65804 70964

Balance

emissions

to offset

-63496 -61481 -53938 -50505 -51804 -52525


18/27

Roadmapto carbon/water neutrality

Inclusion of carbon andwater positivebusinesses in theportfolio

Generate carbon and waterreduction in the value chain

Utilise availablerenewable energy inthe operations

Chose Communityintervention togenerate carbon andwater offsets



19/27

Value chain improvements M&M FES has 600 dealers and 600 suppliers in the value chain.

An energy audit of these would enable M&M FES and the value chain partner to

understand the opportunities to implement operations improvement and energy

efficiency measures to reduce carbon footprint. Again if these measures are

bundled and developed into a carbon Project - these measures would be verified

and accounted for, and carbon credits would be received.

Value chain improvements viz. EE lighting systems, optimizing contract demand,

specific energy optimisation., logistics improvements etc

Assumption: If 10% of the suppliers and dealers at the upper end were targeted

and minimum improvements were considered then 120 * 100= 12000 t Co2willbe generated annually for 10 years. However detailed study will need to be

undertaken for the same


20/27

Roadmapto carbon/water neutrality

Inclusion of carbon andwater positivebusinesses in theportfolio

Generate carbon andwater reduction in thevalue chain

Utilise available renewable energy in

the operations

Chose Communityintervention togenerate carbon andwater offsets



21/27

Green Power SourcingPlant F12 F13 FY14 % switch

to greenpower

Replacement

through greenpower (kwh)

Green power

(Mwh)

Emission

Reductions(tCO2e)

Kandivali 3,91,33,140 2,94,07,080 3,14,65,576 74% 2,32,49,062 23,249 21,157

Nagpur 1,39,40,446 1,80,60,317 1,93,24,539 74% 1,42,94,086 14,294 13,008

Rudrapur 69,02,175 63,97,790 68,45,635 50% 34,22,818 3,423 3,115

Jaipur 10,43,778 10,14,259 10,85,257 30% 3,25,577 326 296

Swaraj 1 1,66,05,000 1,28,91,100 1,37,93,477 50% 68,96,739 6,897 6,276

Swaraj2 1,37,93,700 1,45,61,800 1,55,81,126 50% 77,90,563 7,791 7,089

Total 9,14,18,239 8,23,32,346 8,80,95,610 5,59,78,845 55,979 50,941


22/27


23/27

Other CSR -ESOP opportunities for generatingGHG ERS

The Clean Energy Clean water Campaign for rural villages (UNFCCC- PoA

Deploying energy efficient cook-stoves, zero energy water purifiers and CFLs to

rural households to meet energy and water needs


24/27

Community Development GHG ER opportunities

Opp

Cost /unit Offsets Cost ofoffsets

Communitybenefits

Ease ofImplementation

Scale

INR tCO2 INR Complexity Time UnitsOffsets

(CERs)

Zero/low

energy Water

Purifiers

2200 10 220

health,

avoided

deforestation

Easy 1 year 5000 10,000

EE Cook

Stove2200 10 220

health,

avoided

deforestation

Easy 1 year 5,000 10,000

Investment of INR 2.5 crores(total) in the years 2014 and 15 , can generate 20,000CERs

during the years 2017-21 . Annual operating costs will be 40.0 lacs per year.


25/27

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

TCO2(REpurchase

accounted -

FY15 onwards)

104926 87761 92149 69112 69112 65657 67212 66512 66827

Micro

irrigation9261 11113 13336 16003 19204 23044

Watershed 20000 25000 35000 40000 40000 40000

Land mgmt 4000 4000 4400 5500 6600 7920

Total offsets 33261 40113 52736 61503 65804 70964

RE purchase*(

accounted in

emissions cal. 27645 27645 31100 29545 30245 29930 30072

Value Chain

Imp.12000 12000 12000 12000 12000

CSR 20000 20000 20000 20000 20000 20000

Surplus

Credits-15851 3001 19079 26291 31292 36137

Neutrality Achieved Achieved Achieved Achieved Achieved

Suggested Roadmap with RE accounted for)


26/27

Summary

The entity through climate neutral practiceachieved the following:

Demonstrated Social Responsibility Prepared for emerging carbon constraints

Improved Energy and Cost efficiencies in operations and

supply chain

Improved relationship with the suppliers and community Future proofed its business portfolio


27/27

Climate.

Value.Delivered.

Documents

Cairn Global Ehs Conference