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)
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 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
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 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

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 The Ranking Scale

• Fives Leaves Award

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 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
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 Reduction in water use

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 Reduction in chlorine use

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 GRP performance

• Influences stock market

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 GRP

• Working and promoting

democracy – system of checks
and balances outside the
government

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 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

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 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
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 Pulp and paper sector

Raw material mix

Wastepaper
32% Wood + Bamboo
38%

Agro-residues
30%

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 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

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 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

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 Cement sector

BENCHMARKING CO2 EMISSIONS

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 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

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 India’s energy intensity

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 India’s projected emissions 2030

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 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
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 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?
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