FE-EVI-Report_2011-2012

presents

CORPORATE INDIA’S GREEN INITIATIVES TOWARDS SUSTAINABILITY

FE-EVI GREEN BUSINESS SURVEY 2011-12

Ashutosh Pandey, President

Emergent Ventures India

E-mail: [email protected]

Gaurav Sarup, Senior Consultant, Sustainability & Climate Value Advisory


E-mail: [email protected]

Lead Authors

Vinod K Kala, Founder & Managing Director


Sanjay Dube, Vice President, Sustainability & Climate Value Advisory


Abhishek Kaushik, Consultant


Design by Akif Ahmad

Contributing Authors

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www.financialexpress.com

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Foreword

Introduction & Key Findings

Climate Change and Environment

Natural Resource Management

Corporate Governance, Disclosure & Stakeholder Engagement

FE-EVI Green Business Survey Rankings 2011-12

Participating Companies

FE-EVI Survey Methodology

Jury Profiles

GREEN INNOVATOR HONOURS

Foreword

Framework for Green Innovator Honours

Jury Profiles


Profile of Honourees

Sponsor Profiles

Contents

Corporate India’s Green Initiatives

Towards Climate Change

FE-EVI Green Business Survey 2011-12

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Foreword By M K Venu

The fourth edition of the FE-EVI Green Business Survey comes at a very interesting juncture. It

comes very close to the United Nations Conference on Sustainable Development which will be

held in Rio de Janeiro mid June to specifically agree by 2015 to a set of sustainable development

goals. The UN Summit represents another big milestone in the international effort to accelerate progress

towards achieving sustainable development globally based on the principle of common but differentiated

responsibility among nations based on their stage of development. What is significant this time round is

the draft proposal prepared for the Rio +20 summit includes a framework for reporting by relatively large

companies across the developed and developing world on how sustainable development goals are being

implemented. The World Trade Organization (WTO) is also being sought to be involved in seeing how the objectives of

sustainable development are being realised on the ground.

I am happy to note that the aims and objectives set out in the draft proposal for the Rio+20 summit is totally in sync with the

painstaking effort made by the FE-EVI Green Business Survey these past four years to involve more and more companies to

come forward and talk about their approach to adapting to climate change and addressing the issues relating to sustainable

development. Indeed, core elements of sustainable development are gradually becoming part of the consciousness of

corporate entities. FE-EVI survey has strived to play a catalyzing role in this regard.

In a way the FE-EVI Survey can claim to have anticipated some of the new elements contained in the draft proposal to be

discussed at the Rio +20 summit in June. The FE-EVI Survey has been involving more and more companies these past four

years to come forward and tell the world about their specific efforts at introducing elements of sustainability in their core

business operations. The Rio Summit this time round is also trying to lay down a measurable framework for progressively

creating a “green economy in the context of sustainable development and eradication of poverty”.

There are provisions in the UN draft that seek to make governments agree on the need to develop a global policy framework

for “all listed and large private companies” to integrate sustainability within their reporting cycle. The UN Secretary Generals

panel has suggested such reporting for all companies above a market capitalization of $100 million. Indeed, if this is agreed

upon, a very large universe of companies will begin to integrate issues of sustainability in their reporting cycle.

What the UN is trying to achieve at a global, inter-governmental level is something FE-EVI survey has been trying to do in its

own modest way-to get companies to start reporting regularly on sustainability measures which are becoming integral to their

businesses. The UN draft also talks about the development of “green economy road maps” by the global industry sectors,

which could provide some basis for long term investor engagement and benchmarking through pricing risk and management

quality.This is supplemented with suggestions for environmental pricing of national ecosystem goods and services.

Overall we totally endorse the direction being taken by the forthcoming Rio Summit which has been described as a “once in a

generation opportunity” by the UN Secretary General Ban Ki-Moon. We have no doubt that Indian businesses and civil society

have a great opportunity to create for our own collective sake a national brand proposition out of sustainable development

and show the rest of the world an optimal carbon path for 1.2 billion people which addresses concerns of poverty and

environment in equally. This is an opportunity for India to demonstrate to the world that she can make a transition to a low

carbon economy inspite of being at a stage of development where its per capital emissions are among the lowest in the world.

A pro-active business response to environmental problems is therefore both necessary and inevitable.

The Rio Summit's thrust of developing a specific framework for a “green economy” should propel Indian business leaders to

play a pioneering role in innovation and to create success stories in best practices that surprise the world. A critical mass of

companies must move in that direction to make the real difference. FE-EVI Green Business Survey promises to capture this

emerging story in all its dimensions.

M K Venu

Managing Editor

The Financial Express

Corporate India’s Green Initiatives Towards Sustainability

We are facing serious financial problems worldwide: growth rates have slumped, and economic

recovery seems difficult. In India, we have added problems of policy paralysis, high inflation

and rising inequality. The world today is different from what we have seen in the past few

decades. Yet despite functioning in this challenging economic and political scenario we haven't seen any

slowdown in actions on sustainability aspects by Indian companies during 2011-12. This is undoubtedly

good news; however we also haven't seen any remarkable improvement in performance since last year.

Our research suggests that a small but increasing number of companies are making strategic

investments into sustainability and are also reaping significant value from such investments. We have

also found that though companies have their own unique ways of tackling such issues, there are a couple of points of

commonality:

a) Sustainability is becoming a Board level issue

b) They are evolving their business-models to balance environmental, stakeholder and economic priorities.

We initiated the FE-EVI Green Business Survey in the year 2008-09 to assess how Indian businesses are responding to

climate change issues. In the last four years we have expanded the scope of this survey to include all important aspects of the

broader sustainability agenda including climate change & environment, natural resource management, stakeholder

engagement and corporate governance. The survey aims to provide a platform for Indian companies to learn from each other,

to keep a track of the latest trends in corporate sustainability and adopt the best practices.

During last year's survey we had moved away from evaluation based on awareness and intent to evaluation based on

actual performance & actions. The Fourth Edition of the survey extends it further by evaluating performance of various

companies on sector specific parameters as well. We hope insights from this survey will help companies further develop their

sustainability plans.

Ashutosh Pandey

President


Foreword By Ashutosh Pandey

1


This is the fourth edition of the FE-EVI Green

Business Survey. Over the last four years the report

has tracked the evolution of corporate India's

sustainability initiatives. It has seen companies

become aware of the impact of climate change,

environmental and social factors on their

businesses and take action on crit ical

environmental challenges like GHG emissions,

water use and waste management. Certain sectors

like cement have emerged as leaders in reducing

their environmental impact. In the process, their

operations have become benchmarks for the

global cement industry. On the other hand sectors

like power (especially thermal power) still have a

long way to go to mitigate their environmental

footprint. At present, many power plants are facing

various sustainability risks such as fuel shortages,

inefficient operations and friction from local

communities who live around their plant facilities.

FE-EVI Survey: A Survey to Measure

Corporate Sustainability Performance

This year's survey continues from where we left it

last year. It has sought to capture performance

improvements on key sustainability metrics such as

GHG emissions, energy use, water and waste

management. It also sought to understand the kind

of management systems companies are putting in

place to make sustainability oriented decision-

making systemic within their company.

Key Findings


The survey reveals that:

The efforts on managing GHG emissions and

energy use are starting to show results. Overall

GHG intensities have decreased at anannual

rate of 10% (taken over revenue).

Interestingly, companies who cite CSR as the

main driver for GHG management have seen

the most declines in their GHG emissions. It is

expected that new regulations in form of

Renewable Purchase Obligations (RPO) and

Perform Achieve Trade (PAT) will further reduce

energy & emission intensities in near future.

Natural Resources Management

The survey findings are:

42% of the companies are measuring and

managing their water use. As a result, per

company water use intensities have gone down

by 5% annually.

Resource efficiency is becoming an important

business issue and hence there are more

companies this year who have started analyzing

medium and long term risks associated with

natural resources.

Corporate Governance, Stakeholder Engagement, &

Disclosure

The survey shows that:

Board involvement has an impact on

sustainability performance, especially if they are

able to set up sustainability reporting structures

in the organization. However only 14% of the

Boards are currently focusing their energies on

setting up sustainability departments within

their organization.

There is a new trend emerging of making the

supply chain sustainable. 11% of the

respondent companies are focusing their efforts

on such issues.

Introduction and Key Findings

The Current Landscape

2012 will be a watershed year for environmental

legislation. In June, world leaders, advocacy

organizations, and civil-society groups will meet at

Rio de Janeiro to recommit themselves to

collectively work on global issues of sustainable

development at the Rio+20 UN Sustainable

Development conference. In December, the world's

attention will shift to Doha, Qatar, where the Kyoto

Protocol will be renegotiated. Both these

conferences will set the course on how the world

balances the challenges of climate change,

environmental degradation, social inequity, and

robust economic growth. These conferences

should also provide clarity on how the carbon

markets will be structured in the post-Kyoto world.

Closer home, irrespective of what happens

globally, the Indian Government has embarked on a

path to enable Indian industry to improve their

energy efficiencies and reduce their GHG

emissions. The Perform, Achieve, Trade (PAT) and

Renewable Energy Certificates (REC) schemes will

have a significant impact on how a company makes

its energy usage and purchase decisions. These

programs combined with other government

schemes like the National Solar Mission, have the

potential to drastically reshape India's energy

profile.

However, the risk of a global economic slowdown

and a paralyzed policy environment might result in

corporate climate change mitigation actions taking

a backseat in the coming year. In such a scenario,

business leaders will need to recommit themselves

to keeping their sustainability commitments.

What Our Survey Covers

The Climate Change and Environment section of

the survey sought to understand the steps

companies are taking to help mitigate climate

change and manage other environmental issues.

Questions were designed to gauge the

performance of companies when it comes to:

Measuring their energy use and resultant GHG

emissions

Strategies and initiatives taken to improve

energy efficiency and decrease air emissions

Business Response To Climate Change -

Survey Insights

Companies With Active GHG Management Plans

Have Lower Energy Consumption Growth Rates

Absolute CO emissions of companies who have 2e

reported their GHG emissions for the last three

years have gone up by 4% over the last year. During

the same time period, GHG emissions intensities

have declined at the rate of 10% annually (overall

intensity calculated over revenues). It should be

kept in mind that while the GHG performance of the

surveyed companies has improved, they are still

collectively emitting more than 52 million tonnes of

CO (Figure 1) into the atmosphere. Emission 2e

reduction measures are continually needed to be

put in place by companies in order to help avoid

catastrophic climate change.



3


The survey also revealed that companies with

active GHG management programs have seen a

much lower rise in their energy consumption as

compared to the industry average (Figure 2).

Sector Specific Performance

The auto, IT, chemicals, FMCG, steel and cement

sectors have seen a drop in their GHG intensities

(Figure 3).

Absolute Co Emissions (million tonnes)2e

2009 - 102008 - 09 2010 - 11

52.1

49.7

48.4

2008 - 11

Annual rate of growth for Absolute Energy Consumption for companies

with robust GHG management programs

Industry wide annual rate of growth for Absolute Energy Consumption

9.41 %

Figure 1: Rise in absolute GHG emissions (2008-10)

Figure 2: Annual rate of growth of GHG emissions and energy consumption

4.12 %

Companies are Starting to see The Inter-linkages

Between Climate Change and Natural Resource

Scarcity

Companies also look upon addressing climate

change concerns as a way to mitigate risk. 70% of

the surveyed companies felt that climate change

posed an imminent threat to their business in the

future. Out of these companies, the issue of greatest

concern, was the physical risk of climate change

(83%), which included water scarcity and increase in

salinity of coastal soils. Cement sector and food

based FMCG companies are particularly worried

about these impacts since their business operations

depend on the availability of large quantities of fresh

water. As climate change starts to threaten timely

availability of resources, we see these concerns

spreading to the power, real estate, and the

chemical and fertilizer sector as well.

CSR is The Strongest Driver for Reducing GHG

Emissions; Regulatory Pressures Have Not Yet Taken

Affect

For 82% of the surveyed companies, the biggest

reason to manage their GHG emissions is because

such action results in improving operational

efficiencies. 78% of the companies were looking to

derive brand building benefits from this exercise,

especially since more than 42% of the companies

have felt some pressure from their stakeholders to

address the issue of climate change. However, when

actual performance on reducing GHG intensities was

compared with drivers for managing emissions,

companies that stated CSR as a driving force saw a

3.7% drop in emissions intensities (Figure 4).

Similarly, companies that stated regulatory

pressures as a driver for managing emissions, saw

their GHG emissions intensities rise by 2.4%. This

may be because most climate or energy related

regulation has been passed by the Government only

recently. The impact from these regulations will be

seen in the near future.

10.1

0%

1.4

1%

Pharm

a

0.8

3%

-0.1

6%

Cem

ent

-0.0

6%

-1.2

2%

FM

CG

-0.0

3%

-0.7

8%

Chem

icals

2.2

3%

-7.1

6%

IT

10%

2.4

8%

Meta

ls &

Min

ing

-0.3

2%

1.6

0%

Ste

el

2.7

0%

-4.2

3%

Auto

% Change in CO intensity (CAGR: 2008 - 11)2e

% Annual rise in absolute CO emissions (CAGR: 2008 - 11)2e

% change in absolute CO emissions and CO2e 2e

emissions intensity (CAGR: 2008-11)

Figure 3: Absolute and Intensity Changes for CO 2e

by sector (CAGR: 2008-10)

4

Key Takeaways from Climate Change

Mitigation Management

The Drivers for Managing for Climate Change are

Becoming Stronger

Companies have made progress on reducing their

emissions, but improvements will have to be

continuous and exponential in nature because of

strong financial, environmental, and regulatory

pressures that continue to evolve around this topic.

Reasons companies should continue to focus on

managing for climate change include:

Rising fuel prices; shortage of supply: Fuel prices

continue to rise. Over the last year, the cost of

Brent crude has gone up by 34%. Coal prices

have increased by 7%. Coupled with shortages

of fuels like coal and natural gas, companies will

face severe fuel-related challenges. In this

scenario, using these resources efficiently

becomes essential. Greater efficiencies also

result in declining GHG emissions, a goal

companies need to shoot for.

Government regulation has kicked in. Whether it

is the PAT scheme, or Renewable Energy

Credits (RECs) domestically or the Aviation Bill in

EU that charges a carbon tax to airlines,

governments are no longer sitting idly by. If

managed properly, these regulations can result

in financial benefits for companies who are pro-

active about managing their GHG emissions.

Those who do not will face severe financial dis-

incentives for continuing to pollute.

The environment: The environment is not

waiting for us to get our act together. As GHG

concentrations in the atmosphere rise due to

human activity, the probability of us facing

catastrophic climate change within our lifetime

is very high. Studies reveal that global GHG 1emissions rose by 3.2% last year . Companies

need to press ahead with efforts to mitigate their

impact, understand the risks they face and

develop adaptation strategies for a climate

changed planet.

Solar is Fast Becoming The Renewable Energy of

Choice

Purchase of renewable energy is one of the best

ways of securing energy supply and decreasing

operational GHG emissions. With schemes such as

Renewable Purchase Obligations (RPOs) coming

into force, renewable energy investments may see

a rise. Out of the various renewable energy

technologies, 48% of the total investment during

the next year is going to be spent on solar power

(Figure 6).

CSR

Brand Building

Stakeholder Demand

Regulatory Pressures

Operational Efficiency

Peer Pressure

2.40%

1.30%2.40%

-2.50%-2.70%-3.70%

Change in GHG Emissions Intensity

Figure 4: The influence of drivers on GHG emissions intensities

Figure 5: Proposed Investment in Renewable Energy (2012-13)

Solar

Biomass

Wind

Hydro

6%

48%

32%

22%


IndusInd Bank Ltd. A Case in Renewable Energy DeploymentPartnering with Wipro EcoEnergy, IndusInd bank is rolling-out solar approximately 100 powered ATMs in B and C class cities. Solar PV panels of around 1.32 kW is installed on the roof-top / terrace space of each ATM infrastructure and synchronized with the battery bank to continuously power the ATM for its 24 Hrs operation.

The Way Forward

The path to a low-carbon future will be forged by

civil-societies, policy-makers, and corporations

working together. Working alone, the actions of

each group will fail. Our suggestions for two of

these groups are:

For Regulators:

Improve the investment climate for cleaner

sources of energy. Create strong policies or

incentives for companies to invest in slashing

transmission & distribution losses of power.

Take a serious look at implementing smart grid

technology.

Ensure that all policies as part of National Action

Plan on Climate Change (NAPCC) are

implemented in true spirit. The policy regime

should be reviewed and updated regularly to

ensure these are conducive for companies to

take actions.

For business:

Improve R&D on energy management. There is

no other way to leap-frog into the future of

energy conservation. In addition, invest in

renewables and energy efficiency projects to

improve energy security, reduce GHG

emissions, and curtail costs.

Take proactive steps towards meeting

emerging compliance requirements like

PAT/RPO. Decisions should be based on

creating long term strategic advantages and not

focus short term costs but also on.

1 “The State of the Climate”, April 2012, http://www.ncdc.noaa.gov/sotc/

5


Natural Resource Management


Last year's survey revealed that for most of India's

largest companies, water (79%) and fossil fuels

(63%) were the most critical natural resources

because of uncertainty about resource availability

and price volatility concerns.

A year later, these concerns have only increased.

88% companies surveyed this year state water as a

critical resource, while 67% are worried about the

price fluctuations of petroleum and other oil-based

fuels (Figure 7). Other resources such as land

availability have fared no better (concern levels are

up from 32% last year to 41% this year).

Increasing concern over the resource crunch is

forcing several stakeholders to exercise their

influence over ownership of resources. From local

communities stalling projects over land rights

issues, to international governments putting a

restriction on the amount of natural resources that

can be taken out of their countries (Indonesia, coal),

the influence of natural resources on company

costs and operations is becoming increasingly

significant with each passing year.


The Natural Resource Management section of the

survey sought to understand how companies are

managing their natural resource use. Questions

were designed to gauge whether companies have

formal systems that allow them to:

Manage resource use

Understand the risks and opportunities arising

from their dependence on natural resources

In addition to understanding their management

systems for all resource use, the survey particularly

sought to understand how water and waste are

being managed by Indian companies.

Business Response To Natural Resource

Management - Survey Insights

The 2011-12 survey revealed that companies are

deploying multi-pronged strategies to manage their

natural resource consumption. 88% of the

companies view measuring resource consumption

as a key activity to manage natural resources, while

83% of the companies are working to improve

employee awareness and focusing on behavioural

change. Nearly 80% of the companies surveyed

are working on implementing resource

conservation and management strategies.

Regulation is of Key Concern To Companies; Conflict

With Local Communities Remains Low On Priority.

Companies are increasingly concerned about the

regulatory response towards access to natural

resources. 75% of the companies surveyed are

concerned about regulation as opposed to just

20% last year (Figure 8). Given the socio-political

scenario in the country, such concerns are found to

be valid, especially with the increased focus of

regulators on protecting the rights of the local

communities and their access to natural resources.

* Numbers for coal and soil were not asked last year

2010 - 11

2009 - 10

79%

88%

63%67%

32%

41% 41%

0* 0*

26%32%

22%

Water Oil Based Fuels

Land Coal Soil Minerals

Figure 6: Natural resources in order of criticality for companies (Top 6)


7


% Change in Intensity

% Change in absolute water consumption (CAGR: 2008 - 11)

1.3

3%

-1.7

6%

IT

11

.83

%

-0.9

3%

Auto

-0.2

1%

-0.9

2%

Chem

icals

& F

ert

ilize

rs

0.0

0%

-0.8

0%

Cem

ent

1.3

2%

-0.5

2%

Ste

el

7.8

6%

2.6

4%

Meta

ls &

Min

ing

-10

.19

% 5.1

4%

BFS

I

3.8

6% 6.8

3%

Po

wer

3.2

7%

-3.3

7%

Pharm

a

-0.8

9%

-3.5

2%

FM

CG


Companies that have successfully reduced their

water usage have used various means to achieve

the outcome. There is a clear uptrend towards

companies engaging in water recycling and water

harvesting. Companies are also trying to spread

awareness about water conservation among their

employees to bring about a positive change in their

water usage patterns.

However, considering that several regulations are

centered on preventing the exploitation of rights of

local communities, it is surprising that companies

are not more concerned about their interactions

with surrounding communities. A lack of

understanding on how to deal with these external

stakeholders might result in companies facing

significant challenges in the future.

Water Management is Improving; Yet The Risks

Remain Grave

The survey results for this year show a decline in

average water consumption growth as well as

water use intensities across companies. Average

water consumption per company is increasing at a

rate of 2.4% annually. Water use intensities (kilo-

liters/ton of production) per company have been

decreasing by an average of 5% annually.

However, though the relative numbers show

improvement, in absolute terms, cumulative water

consumption has gone up by 8.7% over the last

three years. The impact of this water use in the

current year is that the surveyed companies are

consuming more than 657 million kilo-liters of water

annually (Figure 12), a quantity of water that would

drain the Dal Lake in Srinagar twice over. The

cumulative annual growth rate of 8.7% means that

an additional 57 million kilo-liters of water will be

required next year.

7%

20%

25%

85%

82%

90%

75%

Price fluctuations

Scarcity of raw materials

Regulations

Local communities

2010 - 11

2009 - 10

Figure 7: Top challenges around natural resource management

Figure 9: Percent change in absolute water consumption and water use intensity across sectors

In Million KL

Figure 8: Cumulative water consumption

2009 - 10

2010 - 11

2008 - 09

555

200

400

600

800704

657

Water Consumption (KL)

Water conservation/harvesting 22%

Water recycling

25%

Employee awareness/Behavioral change 24%

Others 5%

Operationalefficiency 24%

Figure 10: Primary means of reducing water usage undertaken by companies

8

Figure 12: Sectoral change in absolute non hazardous waste production

% change in absolute non hazardous waste production (CAGR : 2008-11)

Chemicals & Fertilizers

-0.83%

FMCG

-0.52%Cement

0.60%

Metals & Mining

15.52%

Business Response to Waste Management -

Survey Insights

Waste Management Not Taken Seriously Enough; Yet

To Take Its Rightful Place In Corporate Planning

India's industry has seen rapid industrial growth

over the last three years. Revenue numbers have

gone up by an average of 7% during this period.

Average industrial production growth over the

same three year period has been 6%.

In this phase of industrial growth, hazardous

waste levels have declined by 12% and non-

hazardous waste levels has gone up by 42.6%.

Though companies are managing waste as per

regulatory requirement, however quantum of waste

production should be a cause for concern,

because the cumulative non-hazardous waste

produced annually by the surveyed companies is

equivalent to the amount of municipal solid waste

produced by New Delhi over a period of 16 years!

Companies need to innovate to reduce waste

generation apart from managing generated waste.


Waste is clearly a priority for some sectors,

whereas other sectors are less inclined to track

waste due to the “non-intensive” nature of their

business. Reporting on waste is scattered at best

and hence it becomes difficult to compare

performance for all sectors. The data below (Figure

11, 12) highlights performance for those sectors

with at least 75% reporting - Cement, Chemicals &

Fertilizers, FMCG (Non Hazardous), Metals &

Mining, and Steel (Hazardous).

Key Takeaways for Natural Resource

Management

Companies Need To Track and Understand Evolving

Environmental Regulation Closely

Given the scarcity of resources due to increasing

populations, rising per capita demands, and affects

of climate change, governments will be forced to

revise or introduce legislation governing natural

resource use. Regulation on water is inevitable

since existing regulations are weak and out-dated.

In such a scenario, it becomes imperative for

companies to track environment regulations, more

specifically, companies should also pay attention to

regulation around waste disposal and land use, as

it is expected that both these issues will become

more contentious as the resource crunch increases

in the future.

Companies Need To Link Natural Resource

Management with Demands of External Stakeholder

Companies are still not linking risks arising from

natural resource procurement and consumption

with the demands for those resources by external

stakeholders. This is evident from the fact that

companies still do not have robust stakeholder

engagement frameworks that allow them to assess

how environmental and social demands of

stakeholders will impact business operations. It is

important that companies begin to understand

these linkages since external stakeholders are

competing for the same finite resources and a win-

win situation needs to be created in order to avoid

future conflict.

Figure 11: Sectoral change in absolute hazardous waste production

% change in absolute hazardous waste production (CAGR : 2008-11)

Chemicals & Fertilizers

Metals & Mining Cement Steel

-0.50%

8.55%

19.37%

-0.36%


9

Trend Watch: Companies are Putting in Place

Systems That Put Greater Emphasis on The

Environmental and Social Impacts of Their Natural

Resource Use

With 45% of the companies saying that they

consider themselves responsible for natural

resource use during the procurement and pre-

processing stage of the product life-cycle and 70%

setting policies that cover rehabilitation, sourcing,

or bio-diversity, we see a rise in companies taking

ownership of where and how they procure their

natural resources-in order to manage for

environmental and social factors.

The Way Forward

The companies surveyed have started measuring

their consumption of natural resources closely.

However, merely measuring use will not address

the fast-changing natural resource scenario that is

arising due to scarcity, price volatility, emerging

regulation and stakeholder demand. In order to

stay ahead of the curve, we suggest a three-

pronged strategy to companies (Figure 15):

Understand what resources in the company’s

value chain are subject to the greatest

environmental and social risks.

Estab l ish po l ic ies that address the

environmental and social aspects of sourcing

and use of natural resources. Integrate local

stakeholder concerns while designing policies.

Increase resource use efficiency drastically and

increase spending on R&D that focuses on

finding sustainable substitutes for natural

resources that have the greatest environmental

and social risk associated with them.

Maruti Suzuki (India) Ltd

A Case for Waste Management

Maruti has several waste reduction

programs. It conducts an End of Life of

Vehicle (ELV) Directive which aims at

elimination of hazardous substances for 43

components across all models (except Onmi,

Gypsy & Maruti 800). A total of 8471.80 MT of

metal scrap has been sent to vendors for

making small components. The company

also sends its hazardous waste for co-

processing to the cement industry avoiding

the need for incineration or sending it to the

land-fill

L’Oreal India Pvt Ltd

A Case for Product Recycling

For 5 years, L'Oréal has been implementing a

stringent forestry certification policy for its

packaging, which enables it to declare over

90% of its cardboard boxes as certified by

the FSC ® (Forestry Stewardship Council). At

the same time, the group conducts actions

aimed at reducing the weight and volume of

its packaging and lessening its impact on the

environment.


Understand Sustainability Risk

Increase resource useefficiency and spend on

R&D

Establish Sourcing Policies


The Indian Government has been very progressive

about ensuring that sustainable development

becomes part of the national growth story. Over the

past few years it has introduced several policies

that mandate companies to build sustainability

models into their corporate structures.

There are two policies that will significantly

impact the decisions that are taken in the

Boardroom.

The Companies Bill mandates that corporations

spend 2% of their profits on CSR activities. This

decision will radically transform how corporate

India engages with society. Given that the average

CSR spend is around 1% today, this doubling of

monies will force corporate Boards to be more

involved in the manner in which their profits are

distributed. Focus might shift to working on

projects that mitigate the company's impact on

society and environment as well as maximize the

brand equity that the company can derive from this

effort.

The second decision, taken by the Department of

Public Enterprise has mandated sustainable

development activities for all central public sector

organizations. These activities are part of the

annual MoU that PSU companies sign with the

Government of India.

Both these regulations point towards a more

involved corporate Boardroom on sustainability.

With PSUs taking the lead, it will be difficult for the

Boardrooms of private sector companies to be

indifferent about their company's sustainability

agenda.


Under the corporate governance, disclosure and

stakeholder engagement section we have sought

the following information from the companies:

How involved is the Board of Directors and top

management of the companies when it comes

to addressing sustainability issues and what has

been the impact of their involvement

The reporting and accountability structures in

place that allow companies to implement

sustainability in their organization

The number of years companies have been

disclosing their sustainability performance

publicly through sustainability reporting

How well companies identify their key

stakeholders and the manner in which they

engage with them

B u s i n e s s Re s p o n s e To C o r p o rate

Governance & Disclosure-Survey Insights

Board Involvement Remains Low; Most Concerned

About Organizational Footprint

Corporate Boards are still ambivalent about

discussing and priorit izing sustainabil ity

performance of their companies. Only 42% of the

surveyed companies had Board level committees

to address sustainability. The most common

agenda for Boards has been to endorse carbon and

water footprint measurement exercises for their

organizations.

Boards Are Endorsing The Setting Up Of Corporate

Sustainability Structures; Sustainable Product

Development

The key to successfully implementing sustainability

strategies is to ensure that sustainability

responsibilities are embedded into existing

corporate structures. Of the companies where the

Board has included sustainability as part of its

discussion, 14% are focused on ensuring that

sustainability implementation structures are set-up

within the organization. 10% are focused on

developing sustainability policies.

Corporate Governance, Disclosure & Stakeholder Engagement


11


Another aspect of moving forward on the

sustainability agenda is to start developing products

and services that incorporate sustainability into their

DNA. 12% of the Boards are endorsing the inclusion

of sustainability metrics into product development

and giving a push to increase R&D on ‘green’

products.

Business Response To Stakeholder

Engagement - Survey Insights

Lack Of Awareness Among Stakeholders and Meeting

Stakeholder Expectations are The Biggest Challenges

When It Comes To Working With Local Communities

A company's relationship with local communities

goes a long way in ensuring disruption free

operations. However as companies try and engage

with local communities, 58% cite the community's

lack of awareness about sustainability as one of the

biggest challenges of the engagement process.

Most companies try and overcome this challenge

by organizing awareness and training programs

among the communities (32.5% of surveyed

companies). Additionally, dialogue (8% of surveyed

companies) and CSR activities (32% of survey

companies) help companies understand local

community expectations (49%) - another key

challenge for corporate departments.

Key Takeaways From Corporate Governance

& Disclosure

Companies are Better Embedding Sustainability Into

Their Corporate Structures; Clear Sustainability

Leaders Are Emerging

Sustainabil ity is no longer an unknown

management principle. Several companies are

beginning to understand the strategic importance

of incorporating sustainability metrics in their

decision-making.

Several companies are starting to evolve

sustainability roadmaps and introduce sustainability

KRAs for their employees. This trend is on the rise

and we see companies starting to derive benefits

from this approach. The cement sector is an

outstanding example of how companies can

become industry leaders by focusing on

sustainability aspects such as resource efficiencies,

green R&D, and effective stakeholder engagement.

Such an approach needs to spread across sectors

and companies if industry plans to continue to

remain competitive.

The Way Forward

While progress has been made on embedding

sustainability into corporate structures, companies

still have a long way to go before they can start to

see actual benefits from their initiatives. Since the

principles of sustainability management ask

companies to re-orient the way they analyze and act

on data and information, the change and the impact

of sustainability action will only be visible in the mid-

to-long run. Companies can better facilitate this

evolutionary process by:

Developing short, mid, and long-term

sustainability roadmaps: These roadmaps

should chalk out what sustainability aspects are

relevant for a company, the low-hanging fruit

that can serve as success stories, and the overall

strategy that the company will follow. Such

roadmaps can a lso he lp ef fect ive ly

communicate their sustainability plans with their

stakeholders.

Develop financial linkages for sustainability

actions: Since most corporate decision-making

is still focused on the financial impact of their

actions, companies should spend time

analyzing how sustainability initiatives will

translate into financial metrics. Such efforts will

give an added incentive to implementing them.

However, since not all sustainability decisions

result in short-term financial gain, care must be

taken about how companies make 'go-no-go'

decisions on sustainability initiatives. In such

cases, corporate sustainability roadmaps can

help contextualize the decision-at-hand.

Trend WatchThe survey period saw a 15% rise in the

number of companies releasing sustainability

reports. We believe that this trend will

continue over the coming year.

India's Sustainability Leaders

Sustainability leaders across sectors have a few things in common:

They have been very pro-active about managing their GHG emissions, energy use, water consumption

and waste disposal

They have a well structured stakeholder engagement plans and have created specialized departments to

drive sustainability initiatives across their organizations

They have committed to disclosing their sustainability performance through their sustainability reports

In addition, these companies have achieve significant reductions in the energy, water and waste reduction

intensities.

The 2011-12 FE-EVI Green Business Leadership Award Winners are:

FE-EVI Green Business Survey Rankings 2011-12

Larsen & Toubro Ltd (Heavy Engineering) Other Manufacturing

Jain Irrigation System Ltd Other Services

Company Sector

Mahindra & Mahindra Ltd Automobile

Shree Cement Ltd Cement

Tata Chemicals Ltd Chemical & Fertilizers

Tata Coffee Ltd FMCG

Cognizant Technology Solutions Information Technology

Essar Steel Metals


13



Mahindra & Mahindra Ltd

TVS Motor Company Ashok Leyland Ltd KMC Escorts Ltd Maruti Suzuki India Ltd

Citibank India ICICI Bank Ltd ING Vysya Bank Ltd Axis Bank Ltd Multi Commodity

Exchange of India IndusInd Bank Ltd

OCL India Ltd JK Lakshmi Cement Ltd JK Cement Ltd,

Nimbahera ACC Ltd Shree Cement Ltd Ambuja Cements Ltd Binani Cement Ltd

Chambal Fertilizers & Chemicals Ltd

Rashtriya Chemicals & Fertilizers Ltd

Tata Chemicals Ltd Gujarat Narmada Valley

Fertilizers Company Ltd Camlin Fine Chemicals

Ltd AkzoNobel India Ltd

Auto BFSI Cement Chemicals & Fertilizers

Hindustan Construction Company Ltd

Tata Projects Ltd IL&FS Engineering and

Construction Company Ltd Marathon Realty Pvt Ltd

Essar Steel JSW Ispat Steel Ltd Mahindra Ugine Steel Company

Ltd

Real Estate & Infra Steel

Hero Cycles Ltd Sterlite Technologies Ltd Arvind Ltd DCM Shriram Consolidated Ltd Tamil Nadu Newsprint and

Papers Ltd JK Tyre & Industries Ltd ABG Shipyard Ltd Honeywell Automation India Ltd Exide Industries Ltd Larsen & Toubro Ltd (Heavy

Engineering IC) Cummins Technologies India Ltd Indian Oil Corporation Ltd

Essar Shipping Ltd The Orchid Hotel Jain Irrigation Systems Ltd Larsen & Toubro Ltd

(Hydrocarbon IC) Agriculture Department ,

Goverment of Maharashatra Vodafone India Ltd

Other Manufacturing Other Services

Cognizant Technology Solutions

HCL Technologies Ltd Infosys Ltd Zensar Technologies

Ltd

Sesa Goa Ltd Sterlite Industries India

Ltd Neyveli Lignite

Corporation Ltd

IT Metals & Mining

Tata Coffee Ltd Dabur India Ltd JVL Agro Industries Ltd L'Oreal India Pvt Ltd Tupperware India

FMCG

Aventis Pharma Cipla Ltd Orchid Chemicals &

Pharmaceuticals Ltd Dr. Reddy's

Laboratories Ltd

Pharma

Suzlon Energy Ltd The Tata Power Company Ltd Triveni Engineering & Industries

Ltd (Cogen Power Plant) Godavari Biorefineries Ltd (Sugar

Based Cogen Plant) A D Hydro Power Ltd Surana Green Power Ltd Kalpataru Power Transmission

Ltd Reliance Infrastructure Ltd

(Dahanu Thermal Power Station)

Power

14

Background and Objectives

The FE-EVI Green Business Survey as an annual

exercise was initiated in 2008. In the first year

(2008-09) we gauged the awareness of Indian

businesses on the issue of climate change. The

focus of the survey changed to assessing the intent

for actions related to climate change in the second

year (2009-10). The third edition in financial year

2010-2011 expanded its horizons to include the

impact of actions undertaken.

Building on the last three editions, this year's survey

rates the performance of Indian companies on

sustainability parameters.

The key study assessment areas are:


Natural Resources management

Stakeholder Engagement and CSR

Corporate Governance and Disclosure

The survey evaluates corporate action over a

period of three years - 2008-09, 2009-10, and

2010-11.

Sustainability assessment and disclosure

standards like those of Global Reporting Initiative

(GRI) and Carbon Disclosure Project (CDP) were

also studied and key aspects were adapted for this

survey so that the results are comparable In global

context.

Questionnaire Design

The questions captured awareness, initiatives, and

quantifiable metrics and were used to measure a

company's progress over time. 95% questions

were close ended.

Role of Jury

A jury of 5 experts from industry, academia and

policy was brought together to serve as guides and

independent assessors for the evaluation process.

Their role helped crystallize the ranking

methodology.

Profile of Respondents

Top 500 companies (revenue-wise) of India were

chosen for this year's survey. Personnel specific to

relevant departments in these companies were

approached to respond to the survey.

Responses from a total of 73 Indian companies

encompassing 11 sectors were considered for this

study. A list of all the respondent companies is

given at the beginning of this report.

Ranking Framework

All the respondent companies were clubbed into 11

sector categories. In addition there were 2

categories for “Other manufacturing and heavy

industry” and “Other Service Industries”. The

survey aimed at identifying the top performing

companies in each sector.

FE-EVI Survey Methodology

Focus on Awareness2008 -09

Focus on Intent2009 -10

Focus on Actions2010 -11

Focus on Performance2011 - 12


15


The ranking was done on the basis of evaluation of

the questionnaires filled by the company. The

evaluation was done as explained below.

Every company had to answer two sets of

questions;

General Set: Common set of questions for all the

companies

Sector specific set: Specific set of questions for

companies belonging to a respective sector.

The weightage given to general set was 100 marks

and to Sector set was 20 marks. The weightage

given to the 4 assessment areas of general section

are shown in the graphic below.

The distribution of the marks among the sections

was done as follows,

For the overall section marks, its relative

importance in the current sustainability scenario

was a parameter to distribute marks.

For each individual section, sub-section marks

were distributed based on the quantitative

questions it had, whose data could be mapped

to a performance parameter.

For each sub-section, different questions were

allotted different marks based on its relevance in

judging performance of a company.

The entire process of ranking was validated by an

independent jury of experts.

In addition, telephonic interviews were conducted

with companies to understand their initiatives in

greater details.

All companies have been analyzed on their

performance in Climate change and Environment,

Natural Resource Management, Stakeholder

Engagement, and Corporate Governance and

Disclosure.

SectorSet (5)

GeneralSet (100)

Final Rankings

GHG -10.75

Energy-9.5

LCA-5

Carbon Finance-5

Risk Assessment-5

Climate change & Environment

(33.25) (Scaled Down to 35)

Natural Resources Management(33.75) (Scaled Down to 30]

Stakeholder Engagement & CSR(25)

(Scaled Down to 20)

Corporate Governance & Disclosure(16.5)

(Scaled Down to 15)

NRM-13

Water Usage &

Management-11.25

Waste Management-

9.5

Stakeholder

Engagement-21

CSR-4

Disclosure-6

Corporate

Governance-10.5

16

Jury Profile

K Subramanya

Former CEO, Tata BP Solar

Mr Subramanya's single minded devotion to the environment and passion towards solar helped Tata BP

Solar become India's largest solar company. Under his vision and stewardship, Tata BP Solar chronicled

many achievements, some firsts and many distinct, in the Indian solar industry. His knowledge and

articulation of Renewable Energy industry in general and Solar, in particular, makes him a preferred speaker

at national and international forums.

Mr Subramanya's other professional associations are : Chairman, Solar Energy Task Force, Federation of

Indian Chamber Of Commerce & Industry (FICCI); Member, CII National Climate Change Council 2011-12;

Fellow, World Academy Of Productive Science. He was conferred the award 'Electronics Man of the Year-

2010' by the popular publication Electronics For You for his outstanding contribution to the Solar industry

and the ISA 2011 Sarabhai Award winner from promoting clean technology.

V Subramanian

CEO & Secretary General, Indian Wind Energy Association

V. Subramanian is the CEO & Secretary General of the Indian Wind Energy Association. He was also the

Business Development Adviser to the Council for Scientific and Industrial Research in 2008-09. He is a 1971

batch officer of the Indian Administrative Service from West Bengal and superannuated in June 2008 as

Secretary in the Ministry of New and Renewable Energy in the Government of India. He undertook path

breaking initiatives that resulted in more than doubling the grid connected renewable power generation

capacity in less than three years.

He has occupied various important positions in the Government of West Bengal and the Government of

India. His rich experience cuts across various sectors like Finance, Aviation, Energy, and Labour among

others. He was also the Adviser to the Government of Mozambique for three years and also the Secretary to

the State Government in the Departments of Power and Labour. He was Additional Secretary and Financial

Adviser in the Ministry of Civil Aviation and Tourism and was on the Boards of Air India, Indian Airlines,

Airports Authority of India, Helicopters Corporation of India, Indian Tourism Development Corporation and a

host of other PSEs.


17


Dr Prem C Jain

Chairman and Founder of Spectral Services Consultants

Dr Jain is the Founder and Chairman “Spectral Services Consultants Pvt. Ltd”, An AECOM Company,

India's Leading Consultancy organization, pioneering in design of Green Buildings services systems.

Spectral has the distinct honour of having designed services system for 21 LEED Platinum Rated green

buildings.

Dr Jain is also the Chairman of Indian Green Building Council and the Chairman for CII-IGBC's annual

International Green building Congress from 2007 onwards.

He is Fellow of a large number of International Societies. He has been listed in Marquis Who's Who in the

World and in Marquis Who's Who in Science & Engineering from 1997 onwards, and in Baron's "The Asia

500 Leaders For The New century”.

He has a brilliant academic background in Engineering culminating into Doctor of Philosophy in

Mechanical Engineering from the University of Minnesota, USA with a perfect score of 4.0. He is the first

practicing engineer in India to have been nominated in 1995, Fellow of the ASHRAE USA in its history of a

hundred years. He is the founder President of ASHRAE-INDIA Chapter. In 2005, he was bestowed with

ASHRAE's highest honour “DISTINGUISHED FELLOW” award.

Vinod K. Kala

Founder and Managing Director, Emergent Ventures India

Mr Kala is the founder and Managing Director of Emergent Ventures India (EVI), a leading integrated climate

change and clean energy firm with a pan-Asia presence. He has been instrumental in developing innovative

solutions combining technology and finance and has led the expansion of EVI into areas of renewable

energy and technology development. He has over 20 years of experience in business strategy, financial

engineering and organizational development. He has also led acquisitions and the creation of successful

strategic alliances across various sectors in India and Southeast Asia. Vinod holds a PGDM from IIM,

Ahmedabad and a BE in Mechanical Engineering from Malviya NIT, Jaipur.

Subhomoy Bhattarcharjee

Deputy Editor, The Indian Express

Subhomoy Bhattacharjee is currently Deputy Editor with the The Indian Express. He has earlier worked with

prestigious publications like Economic Times and Business Standard.

He holds a masters degree in economics from the Delhi School of Economics and had qualified for the

Group A of the Civil Services. He has written the first book in India on SEZs, which has been published by

Anthem Press, an imprint of Wimbledon Publishing Company, London. Other than his columns in The

Express Group publications, he also appears as an expert commentator for business news on radio and

television and has lectured at IIMs as well as at journalism schools.

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19


Forward by Vinod Kala

The RIO+20 conference is close

at hand. 20 years have elapsed

when Earth Citizens took the

challenge of 'sustainability'.

Although significant progress has

been made, and sustainability

issues are becoming mainstream

in the areas of policy, corporate strategy and life

style choices, we have not succeeded in complete

alignment. We still don't have an agreement on

Climate Change regime beyond 2012.

We have missed achiev ing Mi l lennium

Development Goals.

This puts onus on Innovators to bring solutions to

the market, which impact our environmental, social

and development goals and accelerate the global

sustainability momentum. Such Innovators will not

only develop new technologies, but find new ways

of applying existing technologies more effectively,

and transform 'cost-value' relationship significantly

to make the solutions attractive. Such innovators

will also find new business models to rapidly

improve market acceptance of the solutions.

Innovation will also be needed in finding new

regulatory constructs or new ways of financing, and

new ways of helping communities participate in

implementing and managing sustainability oriented

investments.

The challenges facing us are big. This

environment is ripe for Innovations to occur.

Emergent Ventures is attempting to catalyze

innovation by identifying and rewarding those

innovations which are 'unique' and pioneering,

which can make a 'big impact' and which can

'scale up' rapidly. This is second year of such

awards.

Choosing such innovations from the large list of

nominations that we receive is a difficult exercise.

Not all good innovations translate into reality and

scale- up of innovations is fraught with many risks.

It is difficult to factor in the differences in the present

scale of impact, potential for future impact, target

sectors of all the nominees and then compare them

equally during selection.

We found it difficult to find examples which

scored high on all the three evaluation factors yet– '

uniqueness', 'impact', 'scalability'. However, we

feel that the nominees selected are worthy of

recognition for scoring high on some of the three

criteria we listed for our evaluation.

However, with happiness we report that some of

the winners this year have succeeded in business

model innovations and show promise of impacting

large populations in rural areas.

We hope that the winners progress and become

very successful in making the big impact that they

envisioned. Our best wishes to them.

Vinod Kala

Founder & Managing Director


20

Concept Methodology

Climate Change and Sustainable Development are

two of the most pertinent issues of our time. A key

to effectively addressing these issues will be to

leap-frog in terms of technology. Additionally, these

technologies would require rapid scale-up and

distribution, a problem that is best resolved by

entrepreneurs and business-minded people. The

Green Innovator Honours was conceived to

recognize entrepreneurs and organizations that are

spearheading business innovation in climate

change mitigation, adaptation, and sustainable

development. The Honours seek to highlight

companies who are "punching above their weight"

in solving some of the biggest ecological,

infrastructural, and equity challenges facing the

nation today.

The Honours sought to evaluate nominations

from the following categories: Energy & power

distribution, Natural resources management, Civic

infrastructure challenges, Innovation at the bottom

of the pyramid and Access to finance.

Process Flow Evaluation

A three step process as depicted in the following

figure was followed to determine the best

innovations.

Evaluation

Companies were evaluated on the following

criteria:

Impact of the innovation on sustainability

parameters of environment and society. The

impact may have two dimensions – potential as

well as already achieved.

Uniqueness of the innovation-how different,

novel, superior the innovation is vis-à-vis other

approaches in solving the problem or

addressing a need.

Scale-up potential of the innovation-this is the

ability of the company in being able to rapidly

grow and take the innovation to market. The

driving factors includes market acceptance of

the innovation, access to resources, business

collaborations/partnerships, technical and

organizational ability of the company.

The jury members conducted detailed interviews

with the innovators to get a first-hand account of

the idea, the company, their vision and growth

plans, and their management team their drive and

abilities.

Framework for Green Innovator Honours

Nominations were invited

through advertisments in

newspapers A total of 10 nominations

were received

A phone interview was

conducted for each of the

short-listed companies by

the independent jury Finally, 2 of the most

innovative companies were

selected

A set of questions for initial

screening was sent to all

participants Based on the initial

screening by EVI, 4

companies were shortlisted

Nominations Initial Screening Final Screening

Sustainability Impact

Commercially Viable

Green Business

Innovator

Scalable


21


Jury Profile

Shishir Priyadarshi

Director, World Trade Organization

Shishir Priyadarshi is one of the Directors of the World Trade Organization. He heads the Development

Division whose mandate is to facilitate work on all trade related developmental issues in the WTO, including

those relating to the developmental aspects of the Doha negotiations, especially in so far as they relate to

addressing the concerns of developing countries. Mr. Priyadarshi also leads WTO's work on sustainable

development. He has a long experience of examining global trade and environment issues from a

developing country perspective. He has played a key role in efforts aimed at increasing the trade related

capacity of officials from developing countries.

As an officer of the Indian Administrative Service, Mr. Priyadarshi has served in the Government of India in

various capacities, including as a Director in the Cabinet Secretary's office, and as part of India's delegation

to the WTO. He has also worked in the South Commission in Geneva, an organization, which was earlier

headed by Prime Minister Dr Manmohan Singh. He has a Masters degree in Physics and one in

Developmental Economics. He has written many papers on trade and development issues. He is also a

visiting faculty in a number of international and national universities, including the London School of

Economics and ISB, Hyderabad.

Vinod K. Kala

Founder and Managing Director, Emergent Ventures India

Mr kala is the founder and Managing Director of Emergent Ventures India (EVI), a leading integrated climate

change and clean energy firm with pan-Asia presence. He has been instrumental in developing innovative

solutions combining technology and finance and has led the expansion of EVI into areas of renewable

energy and technology development. He has over 20 years of experience in business strategy, financial

engineering and organizational development. He has also led acquisitions and the creation of successful

strategic alliances across various sectors in India and Southeast Asia. Vinod holds a PGDM from IIM,

Ahmedabad and a BE in Mechanical Engineering from Malviya NIT, Jaipur.

22


Giriraj Electronics, SuratImproved fuel burning efficiency through the use of H O kit.2

Toro Cooling Systems Pvt Ltd, Pune District Low energy cooling solutions

Hanjer Biotech Energies Pvt Ltd, Mumbai Solid waste processing

Sharada Inventions Pvt Ltd, Nashik Solar driven central air-conditioners

Greenlight Planet, MumbaiProviding solar lanterns to the people in the rural India

Kakatiya Energy Systems Ltd, Hyderabad Automated switches

Shrijee Solar Structures, Mumbai Structures for solar power plants

Geist Research Pvt Ltd, BharuchRecycling of water by filtering pure chemicals from waste water

Pro Nature Organic Foods Pvt Ltd, Bangalore Promoting organic food consumption

Nandan Cleantec Ltd, Hyderabad Bio-energy plantations

Company Business Description


23


3InfoDev is a technology and innovation-led development finance program in the Financial and Private Sector Development (FPD) Vice Presidency of The World Bank and IFC

Profile of HonoureesNandan Cleantec Limited

About The Innovation

Jatropha biodiesel fuel reduces GHG emissions by

66-68%. Priced on par or at a discount as

compared to regular diesel, it was touted as a

viable, eco-friendly replacement for fossil fuels. But,

poor yield and variable supply of the Jatropha seed

– the source of Jatrpha oil – resulted in a lessened

adoption of this fuel.

Nandan Cleantec has successfully increased

the yield of Jatropha cultivation by 150% to 7.5

tonnes/hectare from the conventional yield of 5

tonnes/hectare. In addition, the oil content in the

seeds is almost 5-7% more than the conventional

seeds. Nandan Cleantec has also solved the

problem of demand-supply variability through an

innovative partnership model with village

panchayats and farming communities.

Business Model

In addition to the technological innovations that

have allowed Nandan to increase seed yields, it is

the innovation in developing a catchment area for

its seed crops that makes the company's business

model unique. By creating several business models

depending on the region where they operate they

are able to create a robust supply chain for their

seeds.Some of these business models are:

Public Private (Panchayat) Partnership (P4): Utilizing

the marginal land of panchayats for cultivation of

the crop with the help of the small and marginal

farmers employed under MRNREGS.

Self Help Group Linked: - Capacity building, training

and skill development of people from local

communities and buy-back of seeds at government

declared market prices.

NGO-Linked Contract Farming Model: - Identify

and develop farmer clusters and provides them with

quality planting material and bank credit support.

Farmer clusters are assured of buy back under

contract.

Estate Farming Model: - Unutilized government

owned marginal land is procured on a long term

lease and developed for Jetropha farming. It results

in mass employment generation for both skilled and

unskilled labor force. Eventually, economic

development of the region happens.

Management

The top management of the company comprises of

Mr. Bhaskar Rao Volam, Managing Director of the

company; Mr. Jaya Kumar Bhavanasi, Technical

Director; Mr. Phaneesh Mudigondaa, Finance and

Admin Director; Mr. C.S.Jadhav, Marketing

Director.

Achievements

Nandan Cleantec have the following achievements

to their credit:

Winner of infoDev Top 50 SME competition.

Dr. J. S. Juneja award for “Creativity and

Innovation for MSMEs” by the All India

Management Association.

“CRISIL SE1A” for Highest performance and

Highest financial capability for the year 2010.

Looking Forward

Nandan Cleantec is evolving its technology further

to get a yield which is 2.5 times higher the

conventional yield. They expect the crude oil

production to increase from 50 litre/hour to 1000-

1500 litre/hour.

Category Natural Resource Management

Innovation

Increasing the yield of Jatropha cultivation in tonnage per hectare by 1.5 times, with an increase in the oil content of the seeds by 1.5-2 times.

Jury Comment:

“Nandan has found a solution to the difficult challenge of Jatropha oil yield and cultivation variability. We also appreciate their participative cultivation model that engages farmers in a meaningful manner”

24

Greenlight Planet

About The Innovation

Sold under the brand name Sun King, Greenlight

Planet's solar lanterns are 200% brighter than

kerosene lamps and provide upto 16 hours of

lighting on a day's charging. Compared to a

conventional solar lantern, it provides longer

battery life by using state-of-the-art lithium ion

batteries. These solar lanterns have great potential

to replace the conventional sources of energy like

kerosene and fuel wood which are primary sources

of CO2 and other air pollutants in rural households.

Thus, the use of these solar lanterns clearly has

climate change mitigation benefits in addition to

having health benefits in the form of reduced

exposure to various air pollutants.

Business Model

Greenlight Planet's business model strongly

promotes rural development. Under the Direct-2-

Village scheme, Greenlight Planet trains and equips

the local community with technical know-how to

allow them to sell and provide after sale services for

the product. The business model allows Greenlight

Planet to penetrate into rural India while providing a

source of revenue to the local rural community.

In addition, Greenlight Planet's partnerships with

organizations like TERI have allowed them to use

their distribution network to reach out to newer

markets.

Management

Mayank Sekhsaria is the co-founder of Greenlight

Planet. Prior to launching this social venture,

Mayank worked with Google in Mountain View,

California, where he developed and managed

strategic partnerships. Mayank earned his degree

in Electrical Engineering at the University of Illinois at

Urbana-Champaign.

Achievements

Greenlight Planet has received numerous

international awards

Lighting Africa's Outstanding Product Awards

in two categories.

Recognized as the most innovative solar

company in the BoP market by the global Solar

for All initiative.

Greenlight Planet's products have been highlighted

and appreciated globally

The Wall Street Journal (“Solar Lanterns Bring thLight to Rural India, December 7 , 2009”)

The Economist (“Another Green Revolution, thSeptember 4 , 2009”)

Looking Forward

Greenlight Planet's focus, so far, has been in Bihar

and Orissa, where it has partnerships with 1000-

2000 panchayats. However, the company is now

focussed on spreading its presence across the

country. For this, the scheme of Direct-2-Village is

being pro-actively followed. Currently, there are

about 1000 'saathis' under the scheme in the

training period and that number is expected to

grow multifold by the end of the year.

Category Energy and Power Distribution

Innovation

Solar Lanterns; longer lasting lithium ion batteries with better LED's which have longer time to replacement. A very unique business model to market it.

Jury Comment:

“Greenlight has a strong scale-up promise and potential for big impact.”


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26


Anu Solar Power the brainchild of Mr T. J. Joseph,

has been around for nearly three decades, and has

had extensive and intensive exposure to the growth

and development of the renewable energy sector in

the country. The organizations founding fathers

share a deep commitment to develop world class

renewable energy products for the Indian masses,

at affordable rates. One of the few companies with

a significant and highly accomplished R&D team,

Anu Solar Power has developed and customized a

host of products, from solar water heaters, LED

lights and solar inverters for the Indian scenario.

The abiding force behind Anu Solar Power is the

desire for India to be energy sufficient, and to

harness a clean, renewable energy for economic

growth. This motto has led to the development of a

host of indigenous renewable energy products like

solar water heaters, LED lights and solar inverters.

We offer flat plate, and evacuated tub collector

solar water heaters for both domestic and industrial

use. Our range of LED lights are assembled at our

state-of-the-art factory in Bangalore, and our solar

inverter is one of the finest in the industry.

Anu Solar Power pioneered a new method of

deploying solar water heaters in homes when we

launched I-Hot in 2009. The pay as you use

concept, allows consumers to access hot water at

an astounding15 paisa per unit, thus making solar

water heaters highly accessible to the growing

population.

Products:

Solar Water Heater (ETC) 100 LPD, 200 LPD, 250 LPD, 300 LPD, 500 LPD, 1000 LPD

Solar Water Heater (FPC)

Solar Powered Led Lights

Solar Power Generators

Off Grid Power Solutions

Research & Development

Headquartered in Bangalore, few companies

engaged in the solar energy sector can boast of our

size, spread of products and services or delivery of

support. Our seamlessly integrated products are

backed by extensive and intensive research, and

perfected on par with international standards.

Our large and constantly growing R&D team is

driven by a deep commitment to innovation, and

our products are developed keeping in mind niche

needs of both domestic and commercial

customers.

Innovation

We constantly raise the bar on performance, and

thus, are early adopters of evacuated tube collector

systems in the country. We are also one of the first

to offer modular systems to commercial and

industrial users. We now aggressively move

towards adopting GRP tanks, which ensure high

product durability to our customers. The hallmark

of Anu Solar Power products is quality and

perfection, it's what leads us to assemble our LED

lights in-house rather than have them imported,

and distributed. Our high quality inverters are

developed in-house too.

Our Strengths:

Over 2 decades of experience in Renewable

energy space

Advanced Technology and Product Leader in

the industry

In-house production of complete solar systems

Highest quality standards and excellent after

sales service

Value for money, products designed &

developed indigenously

Over 2 lakh solar water heater installations

Presenting PartnerAnu Solar

27


Associate PartnerPTC India Financial Services Ltd

The Eleventh five year plan contemplated additional

generation capacity of 1,00,000 MW by March

2012. The plan accordingly envisaged additional

investment of ̀ INR 10,31,600 crores for growth and

development power sector during the plan period.

Private sector was expected to contribute 1/3rd of

the additional investment. This was indeed a

gigantic task. Private sector’s participation needed

specialized financial institutions which are not only

able to raise additional resources required for

supporting private power initiatives, but also to

innovate new products and services conforming to

the distinguishing needs of private power projects.

In this background, committed to the development

of power market and incentivizing the private

investment in power sector, PTC India Ltd. (PTC)

promoted PTC India Financial Services Limited

(PFS) to act as a one stop provider of financial

services, to begin with to private power projects.

PTC India Financial Services Limited (PFS) is a

systematically important non-deposit taking NBFC

registered with Reserve Bank of India (RBI) and set-

up to devote itself exclusively for providing financial

solutions to projects in the energy value chain. The

Company has been conferred with the status of

“Infrastructure Finance Company” during Fy11.

Over the period of last four years, PFS has

shaped itself into a fully grown financing institution.

With strong parentage of PTC, business model of

PFS is unique in itself. Structured as an NBFC, it is

the only financing institution in the country that is

devoted to private power projects and providing

debt and equity linked products over life cycle of the

projects.

Till now, PFS has sanctioned financial assistance

portfolio of 60 projects aggregating to INR.7250

crores. The portfolio represents a wide range of

green-field and brown-field projects in renewable

as well as non-renewable space, and would help in

creation of additional generation capacity of more

than 20000 MW. The portfolio of PFS has been

diversified to include solar power, EPC

transmission projects and carbon financing.

“Uniqueness of PFS lies in developing and

delivering structured products linked to equity or

debt, tailored to risk profile and needs of specific

projects in record timeframe. Thus PFS is not

merely providing financial assistance but also add

value to the project development process and that

too by following a highly systematic and

professional approach,” said Mr. T.N. Thakur, CMD,

PFS.

28


The fast-paced growth and development in India

witnessed during last 10 years, catering to basic

needs and aspirations of a billion people, has put

rigorous strain on the natural resources causing

almost irreversible damage to environment.

However, a significant growth in awareness levels

regarding environmental concerns has been

witnessed in past couple of years. Climate change

is now considered as a global threat, which needs

immediate business attention. This Survey

provides insights into the efforts pooled in by Indian

businesses to grow in a sustainable manner and

counter overriding issues like climate change. SGS

would like to partner with these companies in their

endeavors to combat climate change by offering a

range of innovative services to manage risks and to

explore mitigation opportunities.

- Mr. Shivananda Shetty, Director, Environmental

Services.

Validation Process

As the verification partner to the event, SGS will

ensure the authenticity and credibility of data

collection, analysis and applied ranking

methodology. An experienced SGS environmental

team was present onsite to question and validate

the process, ensure transparency and authenticate

compilation of data and its analysis. The team also

ensure that the jury decision is presented on the

final day.

Clean Development Mechanism (CDM)

Joint Implementation (JI)

Voluntary Carbon Standard (VCS)

Gold Standard (GS)

ISO 14064 / PAS2050/2060

EU Emissions Trading Scheme (EU-ETS)

EU Emissions Trading Scheme (EU-ETS) for

Aviation Sector

Service Offerings

Chicago Climate Exchange (CCX)

Reducing Emissions from Deforestation and

Degradation (REDD/ REDD+)

EN 16001 Energy management System

The World Commission on Dams (WCD)

Biogenic CO2 Emissions

About SGS India Pvt Ltd

SGS is recognized as a global leader in inspection,

validation, verification, testing and certification

services. With global reach and local expertise SGS

becomes a most convenient choice for a range of

clients worldwide. SGS operates their range of

services under various heads namely Environment,

Industrial, Minerals, Steel, Textile, Oil & Gas,

Chemicals, System Certification, Consumer

Testing Services, Food and Agriculture.

SGS Climate Change Program (SGS-CCP): SGS-

CCP offers a range of services addressing the

growing need for mandatory and voluntary

reporting of greenhouse gas emissions. The

objective of the Programme is to facilitate trade in

greenhouse gas (GHG) emissions and promote the

harmonization of markets through the application

of standardized validation and verification

procedures. Currently, SGS Climate Change

Program provides validation and verification service

under following schemes/ certifications:

Verification Partner

About Emergent Ventures India

EVI is an integrated climate change and clean energy firm. EVI was founded in 2004 to help find ways to

devise market based solutions to environmental problems. Since then, EVI has been working continually to

further its mission - of finding ways to combine finance with low carbon technology to bring about solutions

that mitigate climate change. We continue to work aggressively with industry, the financial sector, with

government bodies and multilateral agencies to help pursue our mission. EVI has over 140 staff, with branch

offices in Gurgaon, San Francisco, Jakarta, Singapore, Kuala Lumpur, Barcelona and Bangkok. Our team is

an excited bunch of entrepreneurs, technologists, economists, community development workers,

researchers, and managers.

Website: http://www.emergent-ventures.com

About The Financial Express

Established in 1961, The Financial Express is an insightful business daily that offers comprehensive

coverage of economic policy, business developments and market trends. With editions in Delhi,

Chandigarh, Lucknow, Mumbai, Pune, Kolkata, Kochi, Bangalore, Chennai, Hyderabad and Ahmedabad,

The Financial Express has essayed a leadership role in raising issues pertinent to industry and business. The

publication takes great pride in playing the role of a facilitator and encouraging debate and discussion

amongst its various stakeholder communities in order to drive change.

Website: http://www.financialexpress.com

Disclaimer: The FE-EVI Green Business Survey 2011-12 is prepared from sources and data, which we

believe to be reliable, but The Financial Express and Emergent Ventures India or their affiliates make no

representation as to its accuracy or completeness. The report is provided solely for informational purposes

and is not to be construed as providing advice, recommendations, endorsements, representations or

warranties of any kind whatsoever.

thEmergent Ventures India, 5 Floor, Universal Trade Tower, Sector 49, Gurgaon-

122001, Haryana, India.

Tel: +91 124 6653100, Fax: +91 124 6653200

Website: www.emergent-ventures.com

The Financial Express, The Indian Express Limited, Express Building, 9&10,

Bahadur Shah Zafar Marg New Delhi -110002, India,

Tel: +91-11-23702100-07, Fax: +91-11-23702044,

Website: www.financialexpress.com

Documents

FE-EVI-Report_2011-2012