Carbon Emissions

Corporate Responsibility and Environment

Abhishek GhoshSheik Abdul EnayathGaurav Pradeep MotwaniKartiksinh Jyotindrasinh SarvaiyaPradeep Malayil VasudevanShikha Gupta

Contents

Economy – Environment Interdependence1

Corporate Social Responsibility2

CSR Towards Environment3

The Marketing, IT and Legal perspectives4

Industrialization

Business, industries and societies saw nature as a provider of ‘free goods’ such as water, air, and waste disposal facilities.

This resulted in: Population Explosion Rising temperature Shrinking of water table Shrinking of cropland Collapsing of fisheries Extinction of plants and animals

Business and industrial activities cause serious environmental threats, just to name the major ones:

Global warming and energy use Toxic substances, Ozone destruction and CFCs, Acid rain and transport, Marine pollution and health Finally the reduced biodiversity, loss of species and

habitats.

Economy – Environment Interdependence

Corporate Social Responsibility

Traditional business management was focused more on corporate profits, growth, and market share with less attention on the effects on the environment.

Business activities and strategies were basically on economic performance, neglecting the importance of ecological performance.

In the new global competitive business environment, poor management of corporate reputation, employee practices and environmental management can give rise to social and environmental risks that damage shareholder value

Hence, ecological considerations are vital to the successful running of any business, an industry, an organization or a country as a whole finds itself.

CSR Towards Environment

The integration of environmental issues into strategic decision making is achieved in a way that meets core business needs and also wider stakeholder expectations.

Few Initiatives of environmental CSR:

Green Marketing (Marketing Perspective)

Green Computing (IT Perspective)

Kyoto Protocol (Legal Perspective)

www.themegallery.com

Green Marketing

Green Marketing

“All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment.”

Incorporates broad range of activities

Also called environmental marketing.

Came to prominence in the late 1980s

First book on green marketing “Ecological Marketing”

Evolution of Green Marketing

The evolution of green marketing has three phases:

First Phase or Ecological Green Marketing Marketing activities concerned with environmental problems

and give environmental remedies.

Second Phase or Environmental Green Marketing New innovative products which will take care of various

pollution and waste issues.

Third Phase or Sustainable Green Marketing

www.themegallery.com

Why Green Marketing?

Limited resource Vs Unlimited human want.

Use resources efficiently Reduce wastage Achieve organization objective

Growing consumers interest regarding protection of the environment.

Growing market for sustainable and socially responsible products

Benefits of Green Marketing

Companies developing new products and services with environmental input in mind has the following benefits:

Access to new markets

Competitive advantage over companies which are not concerned about environment.

Good image in the eyes of the consumer.

www.themegallery.com

Challenges

Green products require renewable and recyclable material, which is costly

Requires a technology, which requires huge investment in R & D

Majority of the people are not aware of green products and their uses

Majority of the consumers are not willing to pay a premium for

green products

www.themegallery.com

Examples

McDonald's restaurant's napkins, bags are made of recycled paper.

Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year.

Barauni refinery of IOC is taken steps for restricting air and water pollutants.

Green Computing Green Computing

Green Computing

Cyber Warming

Recent press articles focus on IT damage to the environment

IT does as much damage to the environment as the airline industry

2% of the CO2 emitted comes from IT industry For every £1 spent powering systems, 50 p to £1

is spent on cooling

Heat Transfer

Heat Transfer (Contd.)

CMOS Scaling

Increasing involvement in CMOS scalingA dramatic rise in power density

Where is Power Consumed

Race To Go Green

Project Green By IBM

$1 billion initiative to reduce energy use by IBM and its clients

Includes new energy efficient IBM products and services and a wholistic approach to energy efficiency in the data centre

Promises to reduce data centre energy consumption, transforming clients technology infrastructure into green data centres and provide energy savings upto 42% for an average data centre

HP’s Vision

HP’s product Design for Environment program has three priorities

Energy efficiency – reduce the energy needed to manufacture and use our products

Materials innovation – reduce the amount of materials used in our products and develop materials that have less environmental impact and more value at end-of-life

Design for recyclability – design equipment that is easier to upgrade or recycle

HP’s Vision

HP offers over a thousand products that meet key eco-label programs, such as ENERGY STAR, Canada Environmental Choice, Blue Angel (Germany), TCO (Sweden), and China CECP energy.

Challenges

Some sceptics of the green computing say that more energy-efficient data centres won't necessarily minimize overall energy consumption. In fact, they say it will lead to greater energy use. There's an important factor missing from the equation, say green-computing detractors: increasing consumer demandTheir argument goes like this: The more efficient a product, the more you use it, and it ends up consuming more resources overall than it did when it was less efficient.

An initiative by governments of several countries which is legally binding to all corporates.

Kyoto Protocol

Kyoto Protocol The Kyoto Protocol is a protocol to the United Nations

Framework Convention on Climate Change The treaty is intended to achieve "stabilization

of greenhouse gas concentrations in the atmosphere It establishes legally binding commitments for the

reduction of four greenhouse gases (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride)

As of 2008, 183 parties have ratified the protocol which was initially adopted for use on 11 December 1997 in Kyoto, Japan and which entered into force on 16 February 2005. 

Industrialized countries agreed to reduce their collective GHG emissions by 5.2% compared to the year 1990.

Further an AAU is assigned to every corporate. (reduce or buy)

Every 1 tonne of carbon less emitted into the atmosphere earns 1 carbon credit

Kyoto includes defined "flexible mechanisms" such as Emissions Trading, the Clean Development Mechanism and Joint Implementation.

The ultimate buyers of credits are often individual companies that expect their emissions to exceed their quota (their Assigned Allocation Units, AAUs or 'allowances' for short).

How The Kyoto Protocol Helps

India signed and ratified the Protocol in August, 2002. Since India is exempted from the framework of the

treaty, it is expected to gain from the protocol in terms of transfer of technology and related foreign investments

So Corporates use the Kyoto Protocol as a CSR initiative.

In fact corporates are using carbon credits to make projects economically viable.

Corporates have definitely taken a giant leap towards reducing their CARBON FOOTPRINT that they leave behind.

Kyoto Protocol – India Perspective