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Mainstreaming Sustainability in Business Planning and Practices |
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Dear Industry Colleague,
Significant national and global developments in the month
of March are shaping how climate change and sustainability are influencing
business actions and even India’s elections. In a progressive
move, the Reserve Bank of India issued the Draft Disclosure framework on
Climate-related Financial Risks, 2024. All scheduled commercial banks,
financial institutions and larger non-banking financial companies (NBFCs) will
have to disclose their governance, strategy and risk management processes from
fiscal 2026. It will foster an early assessment of climate-related financial
risks and opportunities as well as facilitate market discipline. On the other
hand, more than 200 companies had their net zero commitments “removed” by the Science-Based Targets initiative (SBTi). The need
for a precise and consistent
taxonomy for green investments while enabling systemic provisions for
the risks to be covered has never been so important.
India is now an exemplar for the
developing world by decoupling growth from carbon emissions. India is
undertaking its energy transition away from fossil fuels at a pace that is a
surprise to all. It aims to create 500 GW of fossil fuel-free capacity by 2030,
reducing per unit carbon emissions from electricity. Through the National Green
Hydrogen Mission, it is well placed to acquire the ability to replace fossil
fuels in hard-to-abate sectors in the coming decade. India's enormous financial
requirements to address climate change and ensure just transitioning for its
economy cannot be met by the lone public sector and would require catalyzing
private finance and institutional investment into climate initiatives. Green
bonds offer an emerging financial instrument that holds the potential to
attract private investors into climate action. From a modest beginning of $1.5
billion 15 years ago, the market for green, social, and
sustainable bonds has exploded to $4 trillion today, growing a
hundredfold in just a decade. Our recently launched Policy Brief stresses the
importance of international climate finance, and the support of multilateral
development banks in accelerating the growth of the green bonds market in
India.
Actions undertaken by the signatory companies of the Industry Charter for Near-Zero
Emissions Ambition by 2050, instituted by TERI, are supplementing
TERI’s ongoing work on various facets of energy transitions and industry
decarbonization. Deepened engagements with policy and business stakeholders are
evident in the technical proposals on why storage of electricity is
necessary for meeting demand round the clock and the details of range of possible mitigation
strategies for Net Zero steel sector. A recent meeting with Sustainability
Officers served as an important knowledge platform to provide key
insights about recent developments.
Our Council for Business Sustainability serves as the
interface for our research work to be connected to the corporate world and
enables two-way engagement. TERI CBS engages with the core issue of what
businesses must do to shape and lead in sustainability. Our Calendar of Corporate
Engagements in FY 2024-25 is now available. Your suggestions and feedback
remain a constant source of inspiration for us.
We hope that the newsletter provides a good and insightful
reading for you.
- Arupendra Nath Mullick, Vice President - TERI CBS |
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As a leading
global mining and metals business, Hindalco has developed a blueprint for
sustainability across the aluminium and copper value chains. Focused on
resource sustainability and conservation, Hindalco’s sustainability actions
span from sustainable mining practices to energy conservation to recycling and
environment-friendly disposal of industrial wastes, and many more.
With TERI’s research work
focused on driving energy conservation, and promoting pathways for resource
efficiency, waste management and circular economy, the two organisations have come
together to leverage their capabilities, and create sustained impact across the
value chain of shareholders. |
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"We should be talking about the storage mechanism of electricity... perhaps nuclear (energy) can (also) be the answer to developing countries (energy needs)”
- Mr. Satish Pai, Managing Director, Hindalco Industries (at TERI's 'Panel Discussion with IPCC Chair and Indian Business Leaders' hosted at COP28 in Dubai)
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TERI’s
Expert Group on Financing India’s Long Term Low-Carbon Development Strategies
As India
aspires to become Net Zero by 2070, the economic and policy choices it makes
will require the creation of an ecosystem that enables it to implement this
long-term goal. The Government of India’s Long-Term Low-Carbon Development
Strategy (LT-LCDS) unveiled at COP27 offers the framework within which economic
and policies choices should be made.
The Expert
Group on Financing India’s Long-Term Low-Carbon Development Strategies comprises
of members from the industry and the financial sector, and aims to mobilise
finance and policy environment towards financing green and just transition in
India’s hard-to-abate sectors.
The Expert Group will evaluate India’s financial
strategy with respect to LT-LCDS, particularly in the context of Indian steel
industry and the adjacent MSME sector, analyse policy frameworks and
investments, and share recommendations that can enable financing technology transfers. | |
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Important Reads
Just Transition Framework: For a Sustainable Future in India's Coal Mining Regions
With the diversification of India’s energy mix, an
increasing attention is being felt on how this energy transition will translate
to a fair and equitable transition for the workers, communities,
environment and related industries. The
framework proposes targeted interventions focused on green development such as
clean infrastructure, land reclamation and redevelopment, and socio-economic
transformation focused on reskilling and gender-development. Such interventions
will be dependent on institutional changes across various governance levels,
including national, state and local.
Launched at the 23rd edition of TERI’s World Sustainable Development Summit (WSDS) 2024, in the presence of Shri Amrit Lal Meena, Secretary, Ministry of Coal, the framework report is informed by extensive research in India’s eastern coal-belt and engagement with diverse stakeholders.
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A Framework for Enhancing International Climate Finance Flows
Mobilisation and disbursement
of climate finance at the requisite speed and scale are crucial to meet climate
targets. However, climate finance flows are often hindered by the high cost of
capital; the genesis of this high cost of capital includes perceived risks
associated with the investment, and institutional ambiguities prevalent across
countries and sectors. Many times countries, accountable to their domestic
stakeholders, may also disapprove of such risks.
New institutional
mechanisms are needed which will enable higher climate finance flows. This T20
policy brief published under the Indian G20 presidency advocates how designing and developing a
network of risk guarantee schemes, endowment structures, disbursement
structures, and comparable simplified taxonomies, and enabling due diligence
mechanism can help moderate the risk perception of investments. |
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A G20 Coalition on Emerging Technologies for a Zero - Carbon, Climate Resilient Sustainable Future
Development
of clean technologies can play a crucial role in decarbonising industries. However,
with such technologies still on the horizon, there is pertinent risk related to
the time taken for such technologies to have mature markets across the G20
economies. Coordinated efforts among countries are required to facilitate
faster maturity of such emerging technologies.
To accelerate this process, the policy brief outlines seven
principles suggesting the need for creation of a G20 coalition on emerging
technologies, recommending that principles relating to gradual harmonisation of standards,
institutional reforms, sustained and transparent research, development and
demonstration, and trust-building in green energy sector can enable faster
maturity of emerging technologies market. |
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India Net Zero Alliance – Webinar on Green Open Access for
Manufacturing Industries & Corporates | 10th April
The India Net Zero Alliance is organising a webinar on
Green Open Access for the Commercial & Industrial (C&I) sector on 10th April, 2024.
The panel discussion will discuss key policy and regulatory
frameworks, role of DISCOMs, impact of changes in banking settlement periods
and how advances in technological innovation can promote green open access to
contribute towards India’s net zero goal. |
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TERI CBS Calendar of Corporate Engagements in FY 2024-25
TERI CBS engages with the core issue of what businesses must do to shape and lead in sustainability. The Council co-creates business solutions with members to address their sustainability challenges, curates common interest forums with participation of Chief Sustainability Officers, undertakes policy advocacy and builds capacity through Management Development Programs, and much more.
Basis feedback from the corporate sector on the thematic activities TERI CBS should action upon, we present a set of planned engagements for FY 2024-25.
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TERI and Ion Exchange (India) Limited sign Technology and Trademark License Agreement
The
Energy and Resources Institute entered into a technology and trademark license
agreement to commercialise TERI’s patented wastewater treatment technology - TERI's Advanced Oxidation Technology (TADOX).
The agreement was signed in
the presence of Mr. G Asok Kumar, Director General - National Mission for Clean
Ganga (NMCG), Dr. Vibha Dhawan, Director General – TERI, and Mr Ajay Popat, President,
Ion Exchange (India) Limited. This partnership will help address industrial
challenges related to wastewater management, and help companies achieve their
Zero Liquid Discharge (ZLD) targets. |
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TERI
at Dun & Bradstreet’s ESG Leadership Summit, Mumbai
TERI,
represented by Director General, Dr. Vibha Dhawan, was present at the ESG
Leadership Summit organised by Dun & Bradstreet in Mumbai on 13th March, 2024.
The Summit highlighted the increasing benefits for corporates to
integrate ESG principles in their decision-making, and how alignment with ESG
principles can help achieve goals of improved
operational efficiencies, regulatory compliances, foster innovation, and in turn
lead to long-term corporate objectives of value creation for all stakeholders. |
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TERI at
IICA’s Inaugural Session of Certified ESG Professional – Impact Leaders
Programme
The Institute
of Corporate Affairs (IICA) in collaboration with UNICEF inaugurated Batch III
of the ‘IICA Certified Environmental-Social-Governance (ESG)
Professional-Impact Leader Programme’ on 1st March.
Dr. Vibha Dhawan,
Director General, TERI, delivered a special address at the inaugural session of
the programme that aims to empower business organizations and professionals to
understand “glocal” ESG landscape, identify and address ESG risks and
opportunities, comprehend materiality aspects, build resilient ESG strategies,
create an ESG sensitive culture, and enable leaders to take sustainable
business decisions. |
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In Spotlight
As part of TERI’s Future Unfolded Series, watch Mr
Rajiv Ranjan Mishra, Managing Director, Apraava Energy, discuss how investors
look towards an enhanced regulatory, fiscal and offtake certainty as they aim
at investing in India’s energy transition. |
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TERI Research and Publications |
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Integration of TADOX Technology to Achieve Net Zero in Textile Wastewater Treatment: Policy Recommendations Based on Pilot Study in a CETP
Inability of conventional biological treatments to address challenges faced by the textile industry such as removal of colour and dissolved organics result in a highly inadequate, resource and energy intensive treatment.
This policy brief (based on the pilot demonstration of TERI's novel technology, TADOX, at Rooma Industrial Area, Kanpur, Uttar Pradesh) showcases how integration of TADOX at the prebiological stage while implementing Zero Liquid Discharge (ZLD) system can help overcome traditional
challenges associated with ZLD implementation like high costs, intense
energy demands, and significant sludge generation. |
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Accelerating the Growth of Green Bonds in India
Green Bonds are increasingly becoming an appealing financial instrument to attract private investors towards climate actions. However, unlike the global market, green bonds in India occupy a low share of the domestic bonds market.
This TERI policy brief analyses macro and micro level challenges that hinder the growth of green bonds in India, and recommends measures such as taxonomy, fiscal and policy levers, awareness-building and innovative issuance strategies to overcome these challenges. |
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Practices and Solutions: Accelerating Indian Industry Decarbonisation
The anniversary update report of the Industry Charter for Near Zero Emissions by 2050 titled ‘Practices and Solutions: Accelerating Indian Industry Decarbonisation’ is prepared with inputs from the charter signatory companies.
The report compiles 21 low-carbon solutions and practices adopted by the Indian industry across their own operations and the supply chain, covering initiatives on energy efficiency, renewable energy, carbon capture and utilisation, and digital transformation. |
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