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Indian companies commit to climate change action

climate change
As SBTs (Science Based Targets) become the new norm for corporate sustainability, embracing of renewables and integration of energy efficiency is spurring new innovations, even as carbon pricing is being adopted as a mechanism to hedge future climate risk.

Vendor selection based on climate mitigation actions

IndusInd Bank prefers vendors that demonstrate some climate change mitigation actions. They have also set internal targets to switch to climate-friendly recycled paper for their business and operational needs, in a phased manner. According to the CDP India Annual Report 2018, over 70% of IndusInd Bank’s total procurement spend goes to vendors who have been screened for sustainability parameters including their impact on climate change.

Incorporating climate mitigation in capital allocation

Kotak Mahindra Bank allocates a portion of its annual budget for expenses to be incurred towards investing in RE, developing energy efficient infrastructure, acquiring LEED certifications and increasing the use of green technology.

Including climate-related risks and opportunities in operating costs

At Ultratrech Cement, the annual financial planning is done considering many strategic inputs such as using waste heat recovery projects which have lower operating and maintenance costs as compared to conventional technology; using alternate materials in cement manufacturing resulting in reduced costs of handling, energy and grinding till clinkerisation, etc. A shift in blended portfolio results in benefits of lower operating costs.

Incorporating low-carbon goods and services

L&T’s Green Products and Services portfolio encompasses engineering and design solutions based on the principles of resource conservation, clean energy and energy efficiency which help lower carbon emissions, water consumption and air pollution, enabling development of infrastructure that has a lower environmental impact and higher public well-being.
In view of changes in consumer behaviour as well as national and international regulatory scenarios, L&T adopted the substitution of current goods and services with lower emission products and services as a risk mitigation strategy. According to the report, the company has built a business case by upgrading their services and products and developing a green portfolio.
Subsequently, green portfolio generated revenue of INR 221.25 billion in 2017-18, an increase of 12% over the previous year and contributing to more than 29% of the company’s standalone sales.
L&T’s Green Portfolio includes green buildings, solar power plants, efficient power transmission and distribution systems, energy efficient equipment, metro rail projects and water treatment and recycling projects.
These solutions have a force multiplier effect as they help the company’s clients to move towards a low carbon economy path – spreading the impact far and wide.