deteriorating natural resources – forests
TRANSCRIPT
WESchool, MIM (Part time) Sem 6
Ryan Rodricks, Roll No 67
[DETERIORATING NATURAL RESOURCES – FORESTS] India Inc. is faced with four major business challenges. In this abstract I’ve taken one of the business challenges, deteriorating natural resources – forests, and provided two examples of how this business challenge has been overcome by the corporates.
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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Contents What are natural resources and where do forests fit in? .............................................................. 2
Forests in India: A deteriorating natural resource ...................................................................... 2
Social forestry, an answer to forests as a deteriorating natural resource ..................................... 3
Case studies: Paper industry of India Inc. and Social Forestry ....................................................... 3
The ‘growing’ need ...................................................................................................................... 3
The business need in Paper industry ....................................................................................... 3
The social need ........................................................................................................................ 4
Case study 1: ITC PSPD – Social and Farm Forestry initiative ..................................................... 4
About ....................................................................................................................................... 4
Initiative ................................................................................................................................... 5
Case study 2: JK Paper Ltd – Social Farm Forestry initiative ....................................................... 5
About ....................................................................................................................................... 5
Initiative ................................................................................................................................... 6
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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What are natural resources and where do forests fit in? Wikipedia defines “natural resources” are what occurs naturally within environments that exist
relatively undisturbed by humanity, in a natural form. Natural resources are derived from the
environment. Some of them are essential for our survival while most are used for satisfying our
wants.
To explain this first we need to understand what a resource is. Resource is something through
which we derive benefit. Benefit need not be monetarily only. It can be anything that meets
needs or want, ensures the proper functioning of a system or enhances our way of life. So
understanding what resource is, we can stretch it for natural resources that such a resource is
what can be available naturally.
Forests are classified as a biotic natural resource. Forests are obtained from the
biosphere/nature. Biotic resources include forests and animals, fossil fuels like coal and
petroleum (because they are obtained from decaying organic matter).
A forest is basically an area with a high density of trees. They function as habitats/homes for
organisms/animals/mammals, hydrologic flow modulators (shaping the flow of rivers and water
beds), and soil conservers, constituting one of the most important aspects of the biosphere.
Forests in India: A deteriorating natural resource Significant forest products of India include paper, plywood, sawn wood, timber, poles, pulp and
matchwood, fuel wood, sal seeds, tendu leaves, gums and resins, cane and rattan, bamboo,
grass and fodder, drugs, spices and condiments, herbs, cosmetics, tannins.
Forestry in India is more than just about wood and fuel. India has a thriving non-wood forest
products industry, which produces latex, gums, resins, essential oils, flavors, fragrances and
aroma chemicals, incense sticks, handicrafts, thatching materials and medicinal plants. About
60 % of non-wood forest products production is consumed locally. About 50 % of the total
revenue from the forestry industry in India is in non-wood forest products category.
Forestry in India is a significant rural industry and a major environmental issue. Dense forests
once covered India. In terms of availability of forest land per person in India today, the rate is
one of the lowest in the world at 0.08 ha, against an average of 0.5 ha for developing countries
and 0.64 ha for the world. Forest degradation is a matter of serious concern.
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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India has a dominant rural population that still depends largely on fuel wood and other biomass
for their cooking and heating. This demand for fuel wood will not come down but the area
under forest will reduce further due to the growing population and increasing human activities.
Social forestry, an answer to forests as a deteriorating natural resource Social forestry is the management and protection of forests on barren lands with the purpose
of helping in the environmental, social and rural development.
The National Commission on Agriculture, Government of India coined the term in 1976. India
took upon social forestry with the aim of reducing the pressure off currently existing forests by
planting trees on all unused and fallow land.
The main objective is to
1. Improve the environment for protecting agriculture from adverse climatic factors,
2. Increase the supply of wood fuel for domestic use, small timber for rural housing, fodder
for livestock, and minor forest produce for local industries,
3. Increase the natural beauty of the landscape; create recreational forests for the benefit
of rural and urban population,
4. Provide jobs for unskilled workers and
5. Land rehabilitation
6. Finally, its object is to raise the standard of living and quality of life of the rural and the
urban people.
Case studies: Paper industry of India Inc. and Social Forestry
The ‘growing’ need
The business need in Paper industry
Wood is a major raw material for pulp and paper industry. Earlier, natural forests provided a
ready and available source. However, with increasing deterioration of this natural resource has
resulted in shrinkage and deforestation. This resource has drastically dwindled over the years.
Due to the efforts of the Indian government to save the forest cover, unprocessed wood has to
be imported from places like Manilla. India imports up to 60% of its requirement of
unprocessed wood. This has cost implications on firms that rely on this for raw material.
Imports means the rural industry takes a hit and fallow lands remain unused as the standard of
living declines.
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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The industry has invested in technology and R&D that can help in better production of hybrids.
This enable that the raw material can be readily available, using products like fertilizers and
pesticides made by subsidiaries. These hybrids are aimed at high productivity.
The social need
Deforestation is also not good for the environment and agriculture. Most industries dealing
with wood also have subsidiary associations that thrive on agricultural produce. The green
cover ensures a positive boost to the climatic factors like rain, soil erosion etc. to help better a
good agricultural yield. Also, the emission of greenhouse gases can be controlled with a better
forest cover. The carbon footprint can be reduced.
Wastelands can be regenerated thus helping enhance farm incomes by providing attractive
land-use alternatives and generating employment opportunities.
A good green cover over the landscape can boost tourism among natural enthusiasts. A
booming tourism can also help local business and can generate livelihood options for the locals.
This also helps in the habilitation of wild life in the area; boosting the preservation of species
that are nearing extinction.
Farmers with agricultural produce once a year can benefit from Agroforestry, which is growing
of forest tree along with agriculture crop on the same piece of land. This will help them with
alternate sources of income than just their produce.
Case study 1: ITC PSPD – Social and Farm Forestry initiative
About
ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and
most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of
packaging, graphic, communication, writing, printing and specialty paper requirements through
its four world-class manufacturing units, 7sales offices and a network of more than 50 dealers
in India, along with an international trade network of 18 distributors / agents and 4 finishing
operations close to the market for providing faster service to the customers.
Having pioneered many specialty applications, ITC's Paperboards and Specialty Papers business
enjoys market leadership in the value-added paperboards segment, and also has a significant
share of the Indian fine papers market. It is the largest exporter of coated boards from India.
Resource:
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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http://www.itcportal.com/businesses/paperboards-and-specialty-papers.aspx
http://www.itcgreenpapers.com/default.aspx
Initiative
ITC’s Social and Farm Forestry Initiative is a story of business innovation and inclusive growth
ITC’s paper and paperboards business is in constant need of a cost-effective and sustainable
raw material base. Linking this need to the socio-economic requirements of the catchment
area, ITC developed its Social and Farm Forestry initiative.
Programmes under this initiative provide sustainable livelihood opportunities to rural
wasteland owners by assisting them to convert their wastelands into pulpwood plantations.
To ensure the commercial viability of these plantations, ITC’s R&D developed high-yielding
clonal stock with shorter harvesting cycles - 4 years against 7 years for standard saplings.
Today, this programme covers over 165,000 hectares and has provided over 74 million person-
days of employment, apart from supplying about 59% of ITC’s total pulpwood requirements -
contributing significantly to the competitiveness of ITC’s paper and paperboards business.
In addition, the plantations have also sequestered over 3,690 KT of CO2 and played a major role
in maintaining ITC’s carbon positive status over the past 8 years.
This model of responsible forestry has also garnered for ITC the membership of the prestigious
Global Forest Trade Network of the WWF.
Resource:
http://www.itcportal.com/sustainability/embedding-sustainability-in-business.aspx
Case study 2: JK Paper Ltd – Social Farm Forestry initiative
About
A leading PAPER MANUFACTURER in India with a combined production capacity of 2,90,000
tonnes Per annum. It operates two integrated Pulp and Paper Mills in India: JK Paper Mills in
Rayagada (Orissa), in eastern India and Central Pulp Mills in Songadh (Gujarat), in western India.
Both the units are ISO 14001:2004 certified for their eco-friendly operations and OSHAS
18001:2007 certified for Health, Safety and Security. 1st Integrated Pulp and Paper Company in
India conferred with TPM Excellence Award by Japan Institute of Plant Maintenance.
WESchool, MIM (Part time) Sem 6 Deteriorating natural resources – Forests
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Ryan Rodricks, Roll No 67| Internal
Resource:
http://www.jkpaper.com/index.php?option=com_content&view=article&id=1&Itemid=3
Initiative
JK Paper Ltd.’s thrust on environment is visible in various eco-friendly processes at their plant
sites for production of pulp and paper. This is done by adopting modern technology and
process innovations.
The farm forestry development program, started in 1991, has created employment and
livelihood opportunities for significant number of people even as the company sources its raw
material requirement from the farm forestry on low-productive land.
Through its R&D work, they have developed a large number of improved varieties. These
provide 2-3 times higher yield as compared to traditional seed route plantations.
JK Paper has been continuously pursuing enriching the green cover through its Social Farm
Forestry drive. Till date in excess of 81000 Ha of land has been planted covering states of
Orissa, Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra and West Bengal. On average it has
added 7000 Ha annually to its plantation drive by distributing over 40 million saplings to
farmers. This farm forestry activity since 1990 has cumulatively provided income for over
45,000 farmers.
JK Paper have signed an Emission Reduction Purchase Agreement (ERPA) with the Bio Carbon Fund of the World Bank covering 3500 Ha mainly owned by small and marginal farmers associated with JK Paper's plantation program. This program provides additional income for participating farmers, besides reducing harmful greenhouse gases and global warming
Resource:
http://www.jkpaper.com/index.php?option=com_content&view=article&id=32&Itemid=33
This model of responsible forestry has also garnered for JK Paper the prestigious Global Peacock
Award for Environment Management.