class 5_team d_unit 6

8/2/2019 Class 5_Team D_Unit 6

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TEAM DCLASS 5

UNIT 6

SUBMITTED BY:KARAN MALIK

SHIVANI PALSHREYA KHASTAGIR

SMIT SHAH


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Indian Oil CorporationLtd

Oil and Natural GasCorporation Ltd


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DPSIR (Unit 5) Corporate Measures (Unit 5)

Greenwash (Unit 5) Comprehensive Efficiency Ratio (Unit 2) Adoption to paradigm shift (Unit 4)


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Source: http://root-

devel.ew.eea.europa.eu/ia2dec/knowledge_base/Frameworks/doc101182/#


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The environment management systems of all IndianOil refineries, pipelineInstallations and major marketing installations/terminals are certified to ISO-14001 standards.

All IndianOil refineries are accredited for Occupational Health&SafetyAssessment Series (OHSAS-18001).

Low Sulphur (0.5%), Extra-low Sulphur (0.25%) Diesel, Diesel with 0.05% sulphurcontent, Unleaded Motor Sprit (petrol or Gasoline), Green fuels (petrol and diesel)conforming to Euro-III emission etc have been implemented.

Source: http://www.iocl.com/Aboutus/Environment.aspx


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All of ONGCs installations - are accredited for(ISO 9000 and 14000 and OHSAS 18000.

ONGC has strived to improve the resourceutilization through operational efficiency,reduced wastage and recycling when feasible.

They constantly look for adoption of

technological innovations, industry best workpractices, and our own R&D inputs.

Revamp of Hazia and Uran units, Frequencydrive starter installation, energy audits etc were

done at ONGC during last year. Source: Corporate Sustainability report, ONGC, 2010-2011, 28-

42.


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Here we have analyzed how the activities ofthese companies are affecting the

environment and what the companies havedone to reduce that.


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Both the companies, being in the same field, affect theenvironment more-or-less similarly. Hence, we have notcompared the both for this section, which we field is morefield-related than company-related.

Both the companies are into Oil and Gas exploration. Exploration and production of hydrocarbons are extractive

in nature and so they are bound to cause adverse impacton surrounding environment.

Drilling mainly leads to noise population as well as

geographic damage. Methane and CO2 emission are also potential threat to

environment. Gas flaring, especially at the onshore sites are also a big

problem.


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Clean Development Mechanism(CDM) projects to earn certifiedemission reductions as per theKyoto Protocol.

They have focused on increasing

natural gas production, thegreener fuel. Also, Methane emission is

reduced to a huge extent. Gas flaring: in 91 it was 20%,

now it has reduced to almost0%.

SOx emission has come down to311.29 tons and NOx tonegligible.

Source: Sustainability report 2010-2011, ONGC, 28-46.


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Carbon foot printing intheir refineries is done.

Carbon neutrality:events like management

meetings have beenmade Carbon Neutral. Potential sources

affecting environmentare identified.

Development of greenbelts around therefineries.

Source: Sustainability report

2010-2011, IOCL, 19-26.


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D

P i.e. eco-efficiency is almost the same from both sides. Operationalequipment are as per the standard. Thus, it is probable that the activitieswill lead to more-or-less similar ecological effect.

But, in SIR, ONGC has made tremendous improvements as can beseen in the previous slides.

While IOCL has projected the Carbon Neutrality events like Cricket Matchin the environment sustainability report, it does not seem much

convincing how that actually contributes to the reduction of damage. Adding to that, R & D policy of ONGC for environment-friendly

technology is far superior than that of IOCL. (Energy Center investmentof $ 8 billion in 2010-11.)

Ground water usage has almost been similar by both. Methane emission is much lesser in ONGC, not so in IOCL.

Green belts development is a welcome initiative by IOCL, but the cleardata regarding that is not available, making the issue cloudy. Overall, ONGC seems much AHEAD OF IOCL as derived from DPSIR

model.


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ONGC: Creating aesthetically satisfying environment is one of the

key objectives of the company. ONGC has developed a corporate mission statement on

being carbon neutral, one of the few energy majors so far. ONGC has formalized its corporate policy on Climate

change and sustainability. Source: Annual report, ONGC, 2010-2011

IOCL: Vision includes Environment as one of the 6 facets. However, objectives do not include the sustainability.

Instead, obligation towards community states taking careof environment.


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Again, ONGC scores ahead here. IOCL has environment as its important

component in the vision statements, butsomehow they are unable to structure thatdown to the objective level.

While in the corporate structure of ONGC,environment has always said to be animportant component in the strategies theyinitiate.


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We have focused on technical as well as economic efficiency of thecompanies, while distributive efficiency needs more insideanalysis of the company which we were unable to derive from thepublic content available.

Technical efficiency: As described in DP model, both the

companies are technically strong. We have considered Total revenue generation/ total number of

employees as the crude indicator for this efficiency. CONCLUSION: Again, ONGC seems ahead.

ONGC IOCL

RevenueGenerated Rs 695322Cr Rs 328853Cr

No. ofemployees

33271 34105

Revenue/

employees

20.89 =9.64

Source: Annual

Report 2010-

2011, ONGC and

IOCL


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To compare throughput efficiency, we have consideredplanned obsolescence and model changes which thecompanies have applied in recent times.

ONGC has identified the transition from current sources to

renewable sources as the key-area of their strategies. ONGC has adopted a two-fold approach

1. Adopt renewable sources of energy to lower thecarbon footprint of ONGC's operations2. Invest in exploration, drilling and processing of low

carbon intensive fuel sourcesONGC has invested Rs 8 Billion over next few years in that.

They have also gone for using Coal bed Methane andShale pilot project, promising high sustainability.


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While IOCL has taken into consideration thewaste management as the key indicator of their

sustainable achievements. For that, they have put active sludge treatment

plant, oil spill refineries etc and also focused onreducing emission through usage of the latest

equipment in that field. CONCLUSION: using the guidelines in the Unit 2

stating that effective model changes will lead tobetter throughput efficiency, IOCL seems to beahead here because of the initiatives they havetaken. However, the absolute efficiency cannotbe derived from this, only the improvement inthe efficiency can be.


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For estimating these two parameters, it isnecessary to have theprecise idea of how muchnatural resources are utilized or sacrificed by the

companies in order to achieve throughput. IOCL claims that they cultivate double the trees

than they utilize. However, further number anddata is not available from any credible resources.

Thus, it would be inappropriate to make anestimation about these two parameters basedon the restrictions we are facing.


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In the sustainability report, IOCL has noted thatPotential sources of carbon footprints such as airtravel undertaken by officials, electricity required foraccommodation of officials, electricity required forrunning the event, ground transportation of officials,

fuel used for cooking food for the officials and wastegenerated during the events were identified. Also, as the initiatives of Carbon Neutralization, there

are only 3 events, out of which one is Inter-divisionalCricket tournament, which should not be said a major

event. However, the initiatives taken by ONGC do not seem to

be coming under Greenwash.Source: Sustainability Report 2010-2011, IOCL, Page 19


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Most improvements that have taken place in ONGC, like reductionin Methane emission, reduction in onshore gas flaring, increasedfresh water consumption, investment in R&D, are recent in nature.

Source: Page 35-40, Sustainability Report 2010-2011, ONGC On the other side, IOCL has implemented measures like low-

Sulphur diesel (1996), unleaded motor sprit (2000), green fuel, etcfrom a very early time.

At present also, for green projects, Rs 7000 Cr is invested.R&D is being carried out for biodegradable lubeformulations.

Source: http://www.iocl.com/Aboutus/Environment.aspx CONCLUSION: Thus, IOCL seems to have adopted the

change towards paradigm shift in a more comprehensiveway, while ONGC has been aggressive on sustainability frontonly recently.


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Thus, in most measures like DPISR, corporatepolicies, service efficiency, greenwashing

ONGC seems clearly ahead of IOCL. While from indicators like Paradigm Shift

adoption and throughput efficiency, IOCL isahead of ONGC.

Overall, ONGC has been more sustainable inits present measures as well as futurestrategies, if compared with IOCL.


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http://www.iocl.com/Aboutus/Environment.aspx http://www.iocl.com/AboutUs/Objectives.aspx http://www.iocl.com/Aboutus/globalcompactinit

iative.aspx http://www.iocl.com/Aboutus/corporatesocialresponsibility.aspx

http://www.ongcindia.com/Download/green.htm

Annual report 2010-2011, ONGC and IOCL Sustainability Report 2010-2011, ONGC and

IOCL
http://www.iocl.com/AboutUs/Objectives.aspxhttp://www.iocl.com/Aboutus/Environment.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.ongcindia.com/Download/green.htmhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/corporatesocialresponsibility.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/Aboutus/globalcompactinitiative.aspxhttp://www.iocl.com/AboutUs/Objectives.aspxhttp://www.iocl.com/AboutUs/Objectives.aspxhttp://www.iocl.com/Aboutus/Environment.aspxhttp://www.iocl.com/Aboutus/Environment.aspx


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THANK YOU

class 5_team d_unit 6

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