Green Rating Project
Benchmarking environment
performance of Indian industry
Chandra Bhushan,
Associate Director
Centre for Science and Environment
New Delhi
Centre for Science and Environment
Background
• Environmental performance
benchmarking + Public disclosure
• Create reputational incentive for good
environment performance
• Push poor performers to improve
through public pressure
Centre for Science and Environment
GRP’s approach
o Voluntary data disclosure by companies
o Survey production plant to doubly
ensure the credibility of information
o Put focus on the major Indian companies
on the stock market – reputation
incentive/ disincentive
o Include both companies that offer to
participate and refuse to participate
(based on secondary data)
Centre for Science and Environment
Institutional structure
• Project Advisory Panel: Includes eminent
persons from industry, government, politics,
academia, research institutions.
• Dr. Manmohan Singh – ex-Chairperson and
Dr.M.S.Swaminathan current Chairperson.
• Technical Advisory Panel: Experts from
industry, research and academia
• Green Inspectors: Network of volunteers
trained to undertake inspection of plants.
• Green Rating Team at CSE
Centre for Science and Environment
5 steps to Green Rating
Technical Advisory Panel Sectoral Issues Document STEP 1
Corporate Level Questionnaire Sector-specific Questionnaire
Company Responses
Secondary Data from NGOs, Media,
Local Communities + Factory visit Project Advisory Panel
Company Environmental Profile STEP 2
Sector Profile Rating system, criteria Company Rating
STEP
Centre for Science3and Environment and weightage STEP 4 STEP 5
Rating methodology
• Uses Life Cycle Analysis (LCA) to rate the
actual performance of companies
• Considers stakeholders perception (local
community, NGOs, regulators, media etc)
as an integral part of the rating assessment
Centre for Science and Environment
The Ranking Scale
• Fives Leaves Award
Centre for Science and Environment
GRP’s Progress
o Rated 4 industrial sectors so far (5 assessed):
o Pulp and paper – twice
o Chlor-alkali
o Automobile
o Cement
o Mining – assessed not rated (State of India’s
environment report on mining)
o Now: Rating top 200 Indian companies from 18
sectors on energy, GHG emissions & water
Centre for Science and Environment
GRP performance
• Introduced transparency
– Pulp and paper sector – 100% - 1st phase &
90%; 2nd phase voluntary
– Automobile sector – 90% voluntary
participation
– Chlor-alkali sector – 93% voluntary
participation
– Cement sector – 95% voluntary participation
Centre for Science and Environment
GRP performance
• Multiple uses and impacts
– Introduction of stricter and rational standards
for industrial sectors
– Changed regulations on mercury pollution
from chlor-alkali industry
– Govt. incentivising change to membrane cell
– Judiciary uses company profiles
– Local community uses the data to push for
change
– Used in AGM
• Improvements in the environment performance
of companies
Centre for Science and Environment
Reduction in water use
Centre for Science and Environment
Reduction in chlorine use
Centre for Science and Environment
GRP performance
• Influences stock market
Centre for Science and Environment
GRP
• Working and promoting
democracy – system of checks
and balances outside the
government
Centre for Science and Environment
Energy & GHG Emissions
• Nuanced picture – benchmarking with
global best practices
– Vintage/ technology
– Size and structure of industry
– Raw material and fuel quality and mix
– Product mix
Centre for Science and Environment
Pulp and paper sector
40
Specific energy consumption (GJ/BDMT)
35
35
30
25
20 20
20 18
16
15 14
15
9
10 7
0
Newsprint WPP Packaging paper and boards
Indian average Indian Best Global best
Centre for Science and Environment
Pulp and paper sector
Raw material mix
Wastepaper
32% Wood + Bamboo
38%
Agro-residues
30%
Centre for Science and Environment
Pulp and paper sector
Capacity classification
(8.5 million MT)
500 458
450
400
Capacity (in TPD)
350
300
250
200
150
90
100
48
50
0
< 60 TPD 60-100TPD > 100 TPD
Centre for Science and Environment
Cement sector
SPECIFIC THERMAL ENERGY CONSUMPTION
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Cement sector
SPECIFIC POWER CONSUMPTION
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Cement sector
Market share of blended cement
80
70 67
Percentage blended cement
60
52
50
40
40
30 26
20
10 4
0
India China US Europe Japan
Centre for Science and Environment
Cement sector
BENCHMARKING CO2 EMISSIONS
Centre for Science and Environment
Fertilizer sector
Specific primary energy consumption for
ammonia production
40 36.7
35
29.3 29.3
30 28
25
GJ/MT
20
15
10
0
Indian average - Indian best - 2007 Germany - 2007 China - 2005
2007
Centre for Science and Environment
Iron & steel sector
Primary energy consumption for crude steel production
50
Specific energy consumption (GJ/MT)
44.4
45
40 36.7
35
30.3
30 27 25.9
25
20
15
10
5
0
Indian average Indian best USA China South Africa
Centre for Science and Environment
India’s energy intensity
Centre for Science and Environment
India’s projected emissions 2030
Centre for Science and Environment
India’s projected per capita
emissions 2030
Centre for Science and Environment
India’s energy and emissions
trajectory
• By 2030, India will be one of the most energy
and emission efficient economies
• Its per capita emissions in 2030 will be lower
than the current global average per capita
emissions
• Still, its emissions will grow 2.5-3 times to meet
the basic developmental goals
• This trend holds true for all developing
countries
Centre for Science and Environment
Way ahead
• Its about ecological and economic space –
developed countries must create space for
the developing countries to grow
• Efficiency is not sufficiency –
transformational technology and reduction
in consumption
• It will cost money – to hold India’s
emissions to 3 billion tonnes/ annum, will
require more than a trillion USD in next 20
years (3-4% of GDP) – who will pay?
Centre for Science and Environment
