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| M&M starts counting the carbon it puts out |
| Abhineet Kumar / Mumbai Dec 12, 2009, 00:52 IST |
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Software to tractor maker Mahindra & Mahindra is counting carbon, literally. Beroz Gazdar, vice president, infrastructure development sector, is preparing a plan for carbon ‘footprinting’ of all group companies. That includes carbon emissions made even during air travel by employees.
The group, always proud of its positive attitude to corporate social responsibilities, was surprised when a large foreign institutional investor asked a couple of years earlier, “Do you have triple bottomline reporting?” This requires a declaration under the three heads of People, Planet and Profitability, according to the Global Reporting Initiative (GRI) guidelines. It is the world’s most widely-used sustainability reporting framework, using 79 indicators. And, much sought now by institutional investors and venture capital funds when they probe for sustainable business ventures.
That was about the time Beroz joined the group to head its Centre for Sustainability cell. “As our auto and farm equipment segments target the western markets, they had already adopted the green initiatives with meeting the international emission norms and working on hybrid vehicles,” said Gazdar. “But the idea was to channelise the effort at the group level and present it on a single paper, so that we can measure our efforts.”
Since then, all group companies, including Tech Mahindra, Mahindra Holidays and Mahindra Lifespaces Developers, have had a “champion” chosen from the set of top performers. In the first year, the task was to sensitise all employees, from the top to the pantry boys, on the issue and what could be done to help mitigate strategic risk in the future.
The company had its first triple bottomline reporting last year, after getting audited by international accountants Ernst & Young. The second such report has come this year and the result has been encouraging. Mahindra Lifespaces Developers, the real estate venture of the group, got a two per cent discount on a credit line from State Bank of India for a project to use non-toxic paints, and fly ash in concrete, roads and in bricks to make ‘green houses’.
The GRI guidelines also require reporting of cost and consumption of water and electricity at plants and offices. All employees now get regular mail to encourage conservation on these. When the group channelised its efforts, it realised that even though its auto and tractor plants were already practicing the energy-saving exercises, its new plant for three-wheelers was not. The latter then adopted the practices.
“Even the pantry boys are now encouraged to participate in the green initiative by conserving water,” said Gazdar, who is pleased with a marginal saving from lower consumption of electricity and water. She expects the savings to be substantial as the company strengthens its efforts.
The company is now looking for the next big leap, with the carbon footprinting plan, which require reporting of carbon emissions that each product or activity will generate. This will include reporting of direct emissions from plants and activities such as use of electricity that indirectly creates demand for power generation. These two activities are to be reported under Scope-I and Scope-II, while other activities such as the air travel made by employees will be reported under Scope-III. Gradually, the company plans to extend this to its vendors.
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