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Introduction
The economy in the country doubled between 1975 and 1995, the
industrial pollution load grew 4 times.
The growing pollution led to a spate of legal cases and people’s
protests threatening industrial investments.
Green rating is an estimate of an industry’s environment
friendliness.
It assesses the adverse impact on environment caused by an
industry’s activities and methods adopted by an industry to
minimize the damage.
Green Rating of industries help them to improve their environmental
performance.
The rating is arrived at after considering industry’s current processes
and technology and their impact on the environment, adoption of
clean technology and various processes adopted for mitigating
adverse impact on environment.
Industrial Green Rating includes various pollution sources like
Air pollution, Water pollution, garbage, and pollution of the
natural environment.
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Objectives
The objective of the Industrial Green Rating Projects is to
guide the Indian industries towards improving the
environmental impacts of industries.
The project aims at encouraging companies to adopt better
environment management policies.
Environment risk liability is an issue that is gaining increasing
attention in Indian company’s boardroom.
Some other objectives are:
To monitor the existing environmental performance of
companies and influence the future industrialisation in the
country.
To aid in better regulation of industrial pollution by regulatory
authorities and,
To aid in better formulation of policies by the government
leading to sustainable development of Indian industries.
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Industrial Green Rating Project
The rating process has influenced the environmental performance of the
companies in a number of ways.
GRP benchmarks the environmental performance of a company on the
basis of theoretical best practice.
Even the best available technology does not fetch full marks for a
company, as there might be scope for further improvement.
Based on the assessment, GRP proposes concrete recommendations for
each industry sector after the rating is over.
These recommendations provide the basis for selecting the parameters
on which improvements made by industry can be monitored and
measured.
The age-old concept of inverse relationship between
environment and economy has become obsolete.
Today a company with better environment practices is more
likely to improve its bottom-line than its not so
environmentally conscious competitors.
Benefits of Green Rating
An independent third party evaluation about environment
friendliness
Mitigation of environmental risk: It reduces the risk associated with
the stringent environmental norms that is becoming stricter
Self assessment tool: Green Rating is a self assessment tool that
can be used to identify areas of improvement
Creating awareness: Green Rating awarded by an independent
agency improves the visibility of MSME in the eyes of various
stakeholders like buyers, suppliers, collaborators/ partners etc
Methodology and the Rating Process
Data collection and dissemination: The project involves
comprehensive data collection on all aspects of the Indian
industry. This is made available to the public through publications,
website, etc.
Environmental performance analysis and rating: Sector-
specific rating criteria are developed to benchmark the companies
for their environmental performance.
Education and awareness rising: The project includes an
environmental awareness programme with special emphasis on
management graduates, environmental managers and
government officials. Training workshops covering media,
regulatory authorities, industry and financial institutions are also a
part of this programme.
Advocacy: After every rating, CSE recognises outstanding
environmental performers and highlights companies with poor
environmental performance as well. It also plans to push for the
introduction of fiscal and environmental policy to support
sustainable development.
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Discussion
Industrial Green Rating Process is one of the good examples
of role of civil society and non governmental organization in
improving industries’ environmental performance and good
environmental governance.
It Create awareness in industries to minimise the
environmental damage, and
It Improve the environment performance of companies.
Best way to handle the Environmental Pollution by Industries.
References
SME Rating Agency of India, “Green Rating”
http://www.cseindia.org/programme/industry/green_rating.htm
http://smallb.sidbi.in/