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For A Green, Clean World
For A Green, Clean World
B U S I N E S S I N D I A X T H E M AG A Z I N E O F T H E C O R P O R AT E WO R L D
H
ow do you start to solve the biggest challenge from pledge to action but also to create a thriving
facing mankind? Of course, by working business ecosystem that will help create India an
together and creating an inter-dependent energy-efficient economy with millions of green
system of innovative business model, aggressive pol- jobs, new start-ups deploying latest digitalisation,
icies and creating a low carbon culture in our soci- artificial intelligence and machine learning tech-
ety. As the infographic below shows, a problem niques that can make our appliances more energy
as complex as climate change can only be solved efficient, buildings more thermally comfortable and
through triple-sector collaboration where govern- sustainable, industry more globally competitive and
ment, industry and non-profit organisation needs Dr. SAT ISH KU M A R our cities and urban landscape cleaner, greener and
to work collaboratively, synergistically, and per- more people friendly.
sistently to solve the problem. A recent example Embodied and operational energy: Energy
worth emulating is the progress and solutions that is consumed twice by most appliances, buildings,
have been made under Montreal Protocol where the vehicles, smartphones, etc. that are the staples of
global triple-sector community has come together to people living in the modern world. The first is the
solve ozone depletion challenge initially and more embodied energy that is used to manufacture or
recently global warming challenges as a result of the build these objects and the second is the energy con-
use of refrigerants – a lifeline for the modern world sumed by these objects themselves. So, Tata Steel,
in a warming planet. ACC Cement, Hindalco, Maruti Auto, Vedanta etc.
all play a very important role in producing either the
raw materials or the widget themselves; their process
efficiency and the energy intensity (Joules/tonne of
steel or cement or Joules/Maruti Swift for example)
will have a huge bearing on the embodied energy
of cars or appliances or homes that we build today.
While there is increasing pressure to quantify the
energy or carbon intensity of the products, it is a
non-trivial task to capture energy consumed during
the entire lifecycle of manufacturing. Yet, companies
are facing the pressure either from the environmen-
tally conscious governments as they enact policies
such as Extended Producer Responsibility which is
holding the manufacturers responsible through cra-
dle to grave or production through disposal/recy-
cling of the products or by shareholders asking the
companies to report quantitative data showing how
well they are doing on the Environment-Social-Gov-
ernance (ESG) framework. Since ESG performance
Energy at the heart of climate change is starting to affect the share price of companies as
challenge: In its 2021 World Energy Outlook institutional investors such as pension funds, etc. are
report, International Energy Agency has voiced asking for more transparency and standardised met-
concerns that today’s pledges by all countries close rics to show how efficient their manufacturing pro-
less than 20 per cent of the gap to the Net Zero by cesses are. Suddenly, circular economy and resource
2050 scenario – an equilibrium state that many cli- efficiency are no longer fancy buzzwords reserved
mate scientists and policy makers believe is needed for avant-garde companies but are being discussed
to counter the threat of climate change in a mean- in the board rooms of majority of the Fortune 500
ingful manner. At the same time, IEA also unequiv- companies.
ocally says that demand side interventions in the Operational energy, on the other hand, is a rela-
form of energy efficiency, which it calls the first fuel, The author is tively easier concept to understand. It is no surprise
is one of the most cost-effective technology mea- Executive Director then that most efforts, such as building energy code,
sures available today to help bridge the ambition and President, standards and labelling of appliances and buildings,
gap. Why is this so significant? Alliance for an fuel efficiency standards for automobiles, etc., to pro-
Energy efficiency remains the cheapest, fastest Energy-Efficient mote energy efficiency have largely focused on reg-
and cleanest form of interventions not only to move Economy ulating operational energy use. Performance metrics
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GUEST COLUMN
B U S I N E S S I N D I A X T H E M AG A Z I N E O F T H E C O R P O R AT E WO R L D
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