How corporations can help fight climate change
Smart businesses are creating droughtresistant crops, micro irrigation solutions and renewable energy systems
India is the third largest carbon emitter in the world. Our per capita energy consumption at 25 GJ, however, represents approximately a quarter of the energy required for a decent quality of life. The global trajectory to a low carbon economy that limits global warming induced climate change needs to be balanced with our developmental needs. This calls for innovative solutions.
The economic loss in excess of $2 billion caused by the Chennai floods of 2015, an extreme climate event, brought home to corporate India the possible adverse impacts of climate change. Smart businesses are creating new products and services, such as drought and pest resistant crops, micro irrigation solutions, big data based smart grid solutions, and renewable energy systems. Enlightened companies are also embracing the concept of the circular economy, where resources are circulated within the system releasing minimal waste into the biosphere, and focusing on sustainable supply chain management; for instance, Jaguar Land Rover’s REALCAR (REcycled ALuminium CAR) project re claims over 50,000 tonnes of aluminium – the weight of 200,000 XE body shells in one year.
The government is putting in place reg ula- tory frameworks to measure emission. In February 2017, the Securities Exchange Board of India( SE BI) suggested that the top 500 companies adopt Integrated Reporting on a voluntary basis from FY 2017-18. The task force on climate-related financial disclosure advocates that businesses disclose material climate-related risks in their financial filings, and companies like Tata Steel are already making such disclosures.
A huge body of research by public policy institutes is also emerging to offer pathways to a low-carbon future. The Energy Transitions Commission is exploring how we can accelerate change towards low-carbon energy systems that enable robust economic development and limit the rise in global temperature to well below 2°C.
The Commission forecasts progress on four dimensions: One, decarbonisation of power, combined with extended electrification. Two, decarbonisation of difficult to electrify activities, through routes such as fuel substitution, carbon capture and storage or use, and product substitution. Three, acceleration in the pace of energy productivity improvement, including the shift towards more servicebased and digital economies, more efficient urban design, and the development of a circular and sharing economy. And finally, op tim isat ion of fossil fuel use.
With proactive governance and enlightened corporate leadership, we may just win the battle against climate change. Mukund Govind Rajan is chairman, FICCI Environment Committee The views expressed are personal