European development finance institution ups focus on India

DEG to provide thrust for auto sustainability

In an initiative to promote sustainability among the automobile sector, European development finance institution DEG in association with UL DQS India has initiated 'Auto Sustain' - a Public Private Partnership project with an objective to help the automotive sector to adopt international best practices to improve and sustain their environmental, economic and societal performance in the long run. DEG funds approximately 50 per cent of the project requirements while UL DQS invests the other 50 per cent for the engagement.

DEG, a subsidiary of KfW, is one of the largest European development finance institutions for long-term project and company financing. For five decades, DEG has been financing and structuring the investments of companies in developing and transition countries in order to contribute to sustainable progress. UL DQS India, the Indian subsidiary of DQS Holdings GmBH is a provider of management systems certification to various industries.

 

DEG has previously associated with UL DQS India for the ‘Secure Gujarat’ project, which was completed in February 2012. The project aimed at promoting awareness on the need and advantages of implementing responsible production practices among SMEs in chemical industries in the state of Gujarat. The Auto Sustain project is expected to be completed by January 2014.Globally, UL DQS has conducted campaigns on sustainability in Sri Lanka & Morocco.

A recent study by United Nations Global Compact and Accenture finds that 93 percent of CEOs see sustainability as important to their company’s future success. Every automobile firm is investing huge amounts in R &D to develop more energy efficient, less pollutant vehicle owing to the rising levels of green gases and increasing awareness of such issues among consumers.

Said Dr. Murugan, MD & CEO, UL DQS India: "With the question of sustainable development established as a central concern in developed societies and for all major international institutions, the automobile industry is facing a new economic, technological and political challenge. The potential scarcities of future energy resources and escalating fears about climate change have become powerful forces for change in the industry."

India being the 6th largest passenger vehicle producer in the world, automobile sector forms an integral part of the Indian industry. It is a fragmented industry with nearly 6400 players and 94 percent are unorganized player using outdated technology. With a growing population, India’s automobile demand is also all set to grow. Hence, there is a huge need to bring in ‘sustainability in the country’s automobile sector.

Companies around the world are seeing a new era of sustainability coming into the view. “Sustainability in automobile industry has become a necessity in India. Configuration of eco-system, affordability, simplification of systems and development of infrastructure are few challenges we need to overcome. At Bosch, sustainability means securing the company’s long-term success while at the same time protecting the environment. This is why we aim to strike a balance between economic, social, and ecological considerations”, Markus Hildenbrand, Regional Vice President-India operations Bosch Automotive Electronics Division said.