Driving sustainability in CV industry
The Frost & Sullivan India Sustainability Leadership Summit 2018 touched upon drivers of sustainability in the CV industry.
The Frost & Sullivan India Sustainability Leadership Summit 2018 touched upon drivers of sustainability in the CV industry.
Focusing on drivers of sustainability in CVs, the Frost & Sullivan India Sustainability Leadership Summit 2018 held in June 2018 turned to be an interesting and knowledge inducing event. Based on a principle of sustainable practices aimed at individuals, communities and the world as a whole, the summit touched upon an array of topics like energy transitions, electric vehicles, electric vehicle infrastructure, energy consumption patterns, and adoption of circular economy principles. With conservation of resources at the core, the summit brought to the fore sustainable practices that were unique, attainable and effective. Expressed Raghavendra Rao, Senior Vice President – South Asia, Middle East & North Africa, Frost & Sullivan, “The adoption of a new pattern will require a change in attitude and practices by many in the CV industry.” “The need is for a national framework to integrate development and conserve. The need is for a global alliance as far as CVs are concerned,” he said.
Drawing attention to the share prices of automotive companies falling as an aftermath of a landmark transition (from BSIII to BSIV), PK Nagpal, Executive Director – Corporation Finance Department, SEBI, underlined the need to achieve sustainability. “The stock price of companies that seamlessly upgraded did not take a beating,” he added.
Mentioning that change in CV industry was inevitable, and in much the same way it was inevitable in other industry sectors, Nagpal averred, “It would be easy to achieve sustainability if it were adopted by all; by all the stakeholders. It would not work if it were attained by a select few in the industry.” Drawing attention to the ambitious plan of the government to go allelectric by 2030, Nagpal called for a need to focus on the CV industry’s transition to alternate energy sources, renewable and solar in nature. Touching upon the Paris agreement, which requires the member countries including India to make binding commitments to curb carbon dioxide (CO2) emissions to keep the global average temperatures from rising above 1.5 degree Celsius as compared to the preindustrial years, Nagpal said that a significant shift from coal-based power generation to renewable energy sources will have to be achieved.
Opining that India will have to produce 100 gigawatts from solar, 60 gigawatts from wind, 10 gigawatts from biomass and five gigawatts from small hydropower by 2022 to serve its needs, Nagpal expressed that SEBI has issued guidelines for corporates to disclose the utilisation of green funds every quarter. He drew attention to the SEBI mandate from 2012 to have the top 100 companies (now top 500 listed companies) to furnish an annual business responsibility report. Urging for a mandate where businesses have to make adequate disclosures in-line with the international guidelines for sustainable business practices, Nagpal mentioned, “When companies are mobilising funds, they have to disclose how funds are being used in the project.” Touching upon the ‘Carbon Disclosure Project’, which requires a country to create incentives for a low-carbon transition, and to consolidate knowledge, he opined that India needs to grab the opportunity and build its own green finance market. Pointing at statistics, which states that USD 125 billion need to be allocated to address the infrastructure funding requirements of India to meet its national renewable energy targets of 2022, Nagpal said, “Electric vehicles alone will need a good USD 667 billion out of the USD 125 billion.”
In a panel discussion on global initiatives to promote sustainability, Dr Sanjay S. Kulkarni, Advisor (Systems) Executive Director Eq., Maharashtra State Electricity Transmission Co. Ltd, drew attention to the changing consumption patterns. He associated the same with a scenario where electric vehicles are a part. Stating that the consumption requirements in such a scenario would lead to a situation where the equation of sustainability will be very different from what it is today, Dr. Kulkarni mentioned that peak power demand patterns are set to change drastically. He cited an example of peak power demand in the national capital reaching 6,934 MW in the month of June this year. “It was the highest ever recorded in the history of the city,” he added. Stressing upon the need for contingency planning through long-term tie-ups and power banking arrangements, Dr. Kulkarni said, “An upgraded network was necessary to ensure regular supply in the area of distribution.” “We welcome the drastic change of character and energy consumption patterns,” he averred.
For adequate EV infrastructure to be in place, Dr Kulkarni called for a need to have a directive, an incentive and a framework. Pointing at the need to amend the electricity act, he explained that the same would benefit the industry since the EV tariff is expected to be a big challenge area. Stating
that renewable energy sources should be used to supplement the demand for electricity rather than replacing the current sources with renewable energy sources, Dr. Kulkarni said that the need for a ‘smart grid’ will increase. It will have to be flexible enough to ramp up or cut down in order to balance energy resources, he mentioned. Known to facilitate an efficient and reliable end-to-end intelligent two-way delivery system from the source to sink, smart grid, through the integration of renewable energy sources and smart transmission as well as distribution, should help up the efficiency and sustainability. “The smart grid should help increase the efficiency and sustainability to meet the growing electricity demand,” averred Dr. Kulkarni. Stressing upon the need to assess the economic impact of EVs, and how they will perform in the future, and as part of the move to electrio-mobility by 2030, it would be important to keep producing conventional energy averred Dr. Kulkarni.
The panel discussion on linking business risks and sustainability imperatives with financial and non-financial resources highlighted the adverse impact caused by companies, which fail to focus on long-term risks. Urged a panel member that the CV industry should quantify risks, and approach sustainability from a business opportunity perspective. “A profit motive needs to be there,” quipped Ajai Malhotra, Distinguished Fellow, TERI. He cited an example of shared mobility company Uber Technologies Inc., and mentioned that the need of the hour is for companies to adopt a financial strategy where they stay heavily invested in changing people’s habitat. “We do not have enough converts because somebody hasn’t invested enough,” he said. A workshop on ‘wastes to assets’ saw the formation of groups among the audience and dignitaries to highlight the industry role in adopting circular economy principles with due respect to resource conservation. A 15-minute group discussion followed, and post that, a presentation by groups on the subjects given to them. These included design of products, phasing out of certain materials, value-added recovery from waste, diverting waste from landfill, and to refurbish concepts and business models.