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Accelerating Action on Energy & GHG Management

Baseline Report on best practices

Six industry groups in 4 sectors (Power, Automobiles, Construction

& Engineering, Oil & Gas, Paper & Pulp, Metals & Mining)

�Government leading the way with low carbon focus in 12th Plan with a

view to reduce energy intensity by 20 to 25% by 2025

�Market Analysts project market for low carbon goods & services will

increase 5-fold by 2020

�Perceptible change on climate change initiatives within industry

�Activities now being seen as investments rather than an expense

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India 200 Overview

Sector Company Name

Consumer

Discretionary

•Bharat Forge

•Cummins India

•Godrej Industries

•Indian Hotels Co.

•Maruti Suzuki India Ltd.

•Tata Motors

•Titan Industries

•Mahindra & Mahindra

Consumer Staples •Colgate Palmolive India

•GlaxoSmithKline Consumer Health

•Hindustan Znilever Ltd.

•Godrej Consumer Products

•ITC Ltd.

•Nestle India

•Tata Global Beverages

Energy •Cairn India

•Essar Oil

•Indian Oil Corporation Ltd.

Financials •ICICI Bank Ltd.

•IDBI Bank Ltd.

•IDFC Ltd.

•IndusInd Bank

•HDFC Bank Ltd.

•Power Finance Corp.

•Mahindra & Mahindra Financial Services

•Reliance Capital

•State Bank of India

•YES Bank

Healthcare •Dr. Reddy’s Laboratories •GlaxoSmithKline Pharmaceuticals

Industrials •ABB- Asea Brown Bovari

•Crompton Greaves

•Jain Irrigation Systems

•Larsen & Toubro

•Siemens India

•Suzlon Energy

Information

Technology

•HCL Technologies

•iGate Patni

•Infosys

•Tata Consultancy Services

•Tech Mahindra

•Wipro

Materials •ACC

•Ambuja Cement

•Castrol India

•Hindustan Zinc

•Sesa Goa

•Sterlite Industries

•Tata Chemicals

•Tata Steel

Utilities •Alstom Projects India

•Tata Power

•GVK Power & Infrastructure

India 200 Overview

– Total 531 responding companies from India

– 12% (5) of the respondents included in the sample for the first time or have disclosed for the first time

– 74% (32) of the respondents have been regularly disclosing since the last three years or more 31

16

51

31

15

57

34

9

53

Responding Publicly to CDP

Responding Privately to CDP

Total Companies responding to CDP

Year on Year India Response Status

2012 2011 2010

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Key Statistics - Governance

Who is responsible?

91% (39) companies have stated that the Board or a committee appointed by it or a

senior officer has been appointed for dealing with climate change.

19

3

40

22

35

22

5

37

28

39

Disclose Intensity Targets

Disclose Absolute Targets

Demonstration of climate change being integrated into overall business strategy

Rewarding climate change progress

Board or other senior management oversight*

Performance statistics related to climate change governance

2012 2011

29%

33%

100%

10%

75%

67% 7

1%

100%

57%

67%

50%

100%

25%

67% 2

9%

CD CS EGY FIN HC IND IT MAT UTIL

Perc

en

tag

e o

f re

sp

on

din

g c

om

pan

ies

Rewards for climate change governance-sector wise

Monetary incentives Other Incentives

Key Statistics – Identified Risks

Regulatory Risks: NAPCC (National Action Plan on Climate Change), PAT Scheme

(Perform, Achieve and Trade), Future emission reporting regulations (leads to increased

operational costs, monitory penalties in case of non-compliance)

Physical Risks: Changes in precipitation extremes, droughts and sea level rise,

induced changes in natural resources, tropical cyclones, hurricanes and typhoons

(leads to disruption of services/operations, loss of business and revenue)

Other Risks: Changing consumer behavior, fluctuating socio-economic conditions,

increasing humanitarian demands, induced changes in human & cultural environment

(leads to risks to brand image, loss of business if seen as negligent)

86 8169

Regulatory Risks Physical Risks Other Risks

Percentage of companies perceivingrisks due to climate change

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Key Statistics – Identified Opportunities

Regulatory opportunities: National Mission on Enhanced Energy Efficiency (NMEEE), National Solar Mission (NSM) and Renewable Energy Certificates (RECs), product labeling regulations & standards, voluntary and international agreements and general environmental regulations (lead to financial benefits in low-carbon business)

Physical Opportunities: Climate change induced events (gives business opportunity to diversify and overcome limitations posed by climate change )

Other Opportunities: Increasing consumer awareness towards low carbon products and sustainability (companies addressing climate change issues stand a chance to win goodwill of the customers)

86

5667

Regulatory Opportunity

Physical Opportunity Other Opportunity

Percentage of companies perceiving opportunities due to climate change

Key Statistics - GHG Disclosure

GHG Disclosure:

• Percentage of companies disclosing

emissions: 91% (39)

• The scope 2 emissions have

decreased by 60% compared to 2010

and 32% compared to 2011

• Only 7 companies have verification /assurance approved

38

42

39

2010

2011

2012

GHG disclosure trend

Number of companies

90.53

80.75

89.41

16.22

9.46

6.46

7.22

2.96

1.99

2010

2011

2012

Emissions reported over the years

Scope 1 Scope 2 Scope 3

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Key Statistics - Scope 3 Emissions

Category name No of responding

companies

Business travel 19

Downstream transportation and distribution 7

Employee commuting 13

Fuel & energy related activities 2

Purchased goods and services 3

Upstream transportation and distribution 5

Waste generated in operations 4

Other 5

16

98

53

2

0 C

ate

gories

1 C

ate

gories

2 C

ate

gories

3 C

ate

gories

4 C

ate

gories

5+

Cate

gories

Number of companies reporting Scope 3 categories

No. of Companies

• The emissions from Scope 31 in the year 2012 are 1.99 million metric tons of CO2e

(2% of the total GHG emissions)

• Overall 12 emission categories (with quantitative emissions data given) have been

reported

Absolute & Intensity Targets

Targets

Emissions intensity reported in

terms of revenue as well as

FTE were found to be high with

81% (34) and 74% (31) of the

respondents reporting for the

same respectively

� More companies have started taking

targets (absolute/intensity related to GHG

reduction) to deal with climate change

� In 2012, 12% (5) of the responding

companies reported absolute targets,

compared to 2% in 2011

34 31

17

6

In term

s o

f re

venue/s

ale

s

In term

s o

f fu

ll tim

e

em

plo

yee

In term

s o

f outp

ut or

pro

duct ty

pe

Oth

ers

Number of companies reporting

2

40

5

12

51

Not answered

No target

Absolute and Intensity targets

Absolute target

Intensity target

% of companies disclosing targets

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Carbon Disclosure Leadership Index

Sector Company Name Disclosure Scores

Information Technology Wipro 95

UtilitiesGVK Power &

Infrastructure82

Consumer Staples ITC 82

Consumer Discretionary Mahindra & Mahindra 82

Information TechnologyTata Consultancy

Services78

Consumer Staples Tata Global Beverages 78

Financials ICICI Bank Limited 74

Industrials Larsen & Toubro 73

Materials Tata Chemicals 73

Materials Tata Steel 73

Financials Yes Bank Limited 73

Materials ACC 72

Energy Essar Oil 72

Information Technology Infosys Limited 72

Financials HDFC Bank Ltd 71

Materials Sesa Goa 70

CDLI Highlights

• The average CDLI score has

gone up by one to 78 in 20121

• The highest disclosure score

is 95 in 2012 as compared to 86

in 2011

• This indicates increased level

of transparency and quality of

information

• The 2012 CDLI comprises

eight sector leaders with 3 each

in IT, Materials and Financials

Good Practices – Examples

WiproWipro has started an IT-based Energy Management program

that will minimize energy leakages and enhance overall

efficiency

TATA Global BeveragesIn 11/12 the Eaglescliffe

factory of TGB reduced its waste to landfill to 1.2%

and had taken a target to achieve 0% to landfill by

July 2012

ITCLEED certification is being done for all the new hotels

that are constructed by

ITC

Mahindra & Mahindra It has implemented various energy saving

initiatives like integrated solar and heat recovery projects for paintshop, modification of

blower fans, installation of efficient water cooled chillers, etc.

GVK Power & InfrastructureGVK operated ChhatrapatiShivaji International Airport,

Mumbai is certified under ISO 14064-1 for the

implementation of GHG accounting and management

system in March 2012

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CDP India

2012 Report Special

CDP India

Directions & Future Plans

Best Discloser of 2012 – WIPRO

1. More detailed information on

Governance.

2. Thorough response regarding

emissions reduction initiatives.

3. Detailed quantification of the climate change risks and opportunities.

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Best Improvement – Mahindra & Mahindra

2012 Disclosure Score: 82

2011 Disclosure Score: 53

How Did Mahindra & Mahindra Improve Their Response?

1. Details of intensity target (in metric tons Co2e/unit of

production)

.

2. New emissions reduction initiatives leading to

CO2e and monetary savings.

3. Potential financial implications of climate change

risks and opportunities identified.

4. Verified and assured Scope 1, 2 and 3 emissions.

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Best New Companies in CDLI – ITC and L&T

ITC Limited

2012 Disclosure Score: 82

2011 Disclosure Score: 64

Larsen & Toubro

2012 Disclosure Score: 73

2011 Disclosure Score: 69

Best New Companies in CDLI – ITC Limited

1. Higher use of renewable energy sources

from 2011-2012, 38.5%, compared with

35.3% from 2012-2011.

2. Goal set at 50%, for share of renewable

energy as part of total energy use.

3. More thorough answers to emissions reduction initiatives questions.

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Best New Companies in CDLI – Larsen & Toubro

1. Intensity Target introduced in 2012.

2. Emission Intensity Reduction Targets for

Scope 1, Scope 2 and targets for energy consumption reduction.

3. On-going target for energy conservation,

as part of corporate sustainability strategy.

Best New Discloser of 2012 – Suzlon Energy

2012 Disclosure Score: 66

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Best New Discloser of 2012 – Suzlon Energy

1. Climate change risk integrated into Suzlon’s business

strategy

2. Suzlon is the fifth largest wind turbine supplier,

decreasing over 37 million tonnes of carbon emissions

every year.

a. Campaigns, such as the Pure Air Lovers Society

(PALS) have been widely received

3. Short and long term strategy focus on , first with

participating countries and then with international bodies,

such as the United Nations Framework Convention on

Climate Change (UNFCCC).

Market Drivers

“Expect BSE CARBONEX to help promote active disclosure of non financial information & provide investors with a reliable benchmark for low carbon strategies. Companies who are proactive in their vision and operations with regard to climate change will find it easier to raise funds in the international market” – S Ramadorai, Chairman BSE Ltd & Vice Chairman TCS

• BSE Carbonex: CDP data

partner

• Newer regulatory drivers -- PAT

scheme; SEBI’s BRR (Business

Responsibility Report),

amendment to Companies Bill

• Challenge of Integrating CDP

with GRI, PAT & SEBI BRR, to

reduce reporting burden

• Joint outreach & workshops

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CDP Cities

•Cities Proposal – Ministry

of Urban Development

•Target – Pilot with 2 or 3

cities, approached already

•Office space courtesy of

JLL + collaboration

Vital component

Other Responding Companies

Bharat Aluminum Company Limited (BALCO)

Essar Power

Essar Steel

Godrej Interio Division - Godrej & Boyce Mfg. Co. Limited

IL&FS Transportation & Networks

Kansai Nerolac Paints Limited

Lawkim Motors Group - Godrej & Boyce Mfg. Co. Limited

MindTree Limited

Satyam Computer Systems

Shree Cements Limited

MAS Holdings-Sri Lanka

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Disclosure by an ORC – Essar Steel

On Demand -- Disclosure score: 79

Disclosure by an ORC – Essar Steel

1. Essar Steel has implemented various emissions

reduction initiatives leading to an estimated

annual CO2e savings of 154,463 metric tons

and monetary savings of Rs 104.13 crores.

2. Essar steel anticipate earning opportunity by

achieving beyond their targets with respect to the

Perform, Achieve and Trade (PAT) mechanism.

3. Verified and assured scope 1, 2 and 3 emissions

If emission reporting becomes mandatory, Essar Steel is more likely to get an advantage over competitors being one of the least energy intensive steel makers. EStIL can lead the market by developing and supplying energy-efficient steel. Moreover Corporate competitiveness can be raised by developing breakthrough technologies.

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ORCs – Bharat Aluminum Company Ltd. (BALCO)

2012 Disclosure Score: 73

ORCs – Bharat Aluminum Company Ltd. (BALCO)

1.Climate change incorporated in Balco’s business strategy & all

employees receive incentives for climate change targets

2.Sustainability and Climate Change related risks form an

essential part of the risk management process

3. Absolute Targets have been identified for Scope 1 and

Scope 2 emissions

4. Climate change risks and opportunities have been

identified.

5. Verified and assured scope 1, 2 and 3 emissions.

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A Big Thank You

• CDP India incorporated in 2012, first grant on Nov 30from Hemendra Kothari Foundation

• MOUs & LOAs with BSE, WWF India, CII-ITC CESD

• Advisory Board member Rohini Nilekani

• Outreach Momentum – media visibility, presenting in conferences