Global HSE Conference | Sept 26-27 | New Delhi | India

1. Climate Change - Role of Industry

2. Sustainability
• Limits to Growth 1977
• Our Common Future 1987
• Rio Declaration 1992
• Rio +10 2002
• Rio +20 2012

3. What is the limiting Factor ?
• Finite Resources- Supportive Capacity of
resources??
OR
• Finite Assimilative Capacity ??

4. Climate Change is REAL…being monitored to calibrate
action
• Politically agreed to limit the rise to 2oC
over pre-industrial levels .
• National climate mitigation
commitments still fall short by a giga
ton.
• In pre Durban (December 2011)
meetings, the nations have agreed to
monitor , analyse, review and calibrate
action

5. Emission Reduction Commitments
Canada ETS (2013)
17% of 2005 by 2020
• Dependent on US
legislation
• Domestic voluntary
markets covering power
and industry
Brazil*
36-39% BAU
by 2020
US (2012)
17% of 2005 by 2020
• Federal or state initiatives like
RGGI/ WCI/ AB 32
Sectors covered
• Power,
• Industry,
• upstream oil and gas- later
• Transport- 2015
EU ETS (2005)
20% or 30% (conditional) of
1990 by 2020
• Power & Industries
• Sustained volumes till 2012
India *
20-25% GDP
emission intensity
of 2005 by 2020
• Emissions
intensity based
commitment
China *
40-45% GDP emission
intensity of 2005 by
2020
•Emissions intensity
based system
NZ ETS (2010)
10-20%
(conditional) of
1990 by 2020
• Transport,
Energy, Industry
• Agriculture
(intensity based)-
2015
Low
Medium
High
Level of ambition against
Business as Usual (BAU)
South Africa*
34% BAU by
2020
Australia ETS (2011)
5% or 15-25% of
2000 (conditional) by
2020
• Power, industry,
transport
Japan ETS (2011)
25% (conditional) of 1990 by
2020
• EU ETS like scheme by 2011.
• Regional system for office
buildings
S. Korea (2010)
4% of 2005 by
2020
• Power, Industry
Indonesia*
26% BAU by
2020
Russian Fed
15-25% of 1990
by 2020
* Voluntary in nature
Source of Commitments: UNFCCC

6. Climate Regulations

8. Country Climate Legislations

9. Financial Markets Exceed Carbon Budgets Several Times

10. Spectrum of Possibilities
Increased
efforts in GHG
emission
mitigation.
Promotion of
renewables,
energy efficiency,
green tech and
green fuels.
Domestic Regulations
and Markets
Bilateral and Multilateral
fungibility
International
funding for GHG
mitigation.
International Agreement
with binding
commitments and GHG
emission reduction is a
commodity and is
globally fungible.
Certain
Uncertain

11. Corporate Actions are still….
• Decisions driven by “short term return" on capital investment
• Initiatives driven "bottom up" with line managers or divisions.
• Wait till scenario is clear…..Not too soon
• “Good to do" …. good corporate social behaviour
• Not integrated or loosely integrated to short and long term
organizational planning.

12. Shortcomings of Classic Corporate Actions
• Opportunistic approach in response to developing regulations
• For the time being BaU….too late to respond!
• Assets, liabilities do not capture climate related valuation/
devaluation.
• Lacks methodical approach to capture climate impact in return of
investment projections.
• Lack of system to methodically and continually apportion value
erosion because of climate impact (climate impact is like a step
curve).
• Lacks systematic approach to unearth carbon asset identification.

13. Good Corporate Response to Climate Change
• Embedding climate consciousness in investment planning
• Development of an integrated systematic approach to treat
climate related assets.
• Development of a corporate view on evolving climate
regulation.
• Establishing a feasible, long-term, credible climate strategy.

14. Good Practice
• Understand the impact of your value chain: Reduce, reuse and
recycle
• You can choose metrics to manage resources better and enhance
toplines: Efficient systems and processes (power usage, transport,
material usage, water, etc)
• Lead by example: set the benchmarks for sustainability, get ahead
of the curve.
• Innovate, Innovate, Innovate: Use technology and existing policies
to your best advantage.
• Create commitment levels across the board for long term action
plans and continuous monitoring and measurement.
• Giving back to the society: CSR projects, forestry projects, CSR
foundation, support a voluntary carbon project.

15. Corporate Climate Steward- A Case

16. Roadmap to carbon/water neutrality
Inclusion of carbon and
water positive
businesses in the
portfolio
Generate carbon and
water reduction in the
value chain
Utilise available
renewable energy in the
operations
Chose Community
intervention to generate
carbon and water offsets
Offsetting emissions
through external
projects/purchases

17. Carbon offsets
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Net
Emissions
tCO2
104926 87761 92149 96757 101594 106674 112008 117608 123489
Micro
irrigation
9261 11113 13336 16003 19204 23044
Watershed 20000 25000 35000 40000 40000 40000
Land
managem
ent
4000 4000 4400 5500 6600 7920
Total
offsets
available
33261 40113 52736 61503 65804 70964
Balance
emissions
to offset
-63496 -61481 -53938 -50505 -51804 -52525

18. Roadmap to carbon/water neutrality
Inclusion of carbon and
water positive
businesses in the
portfolio
Generate carbon and water
reduction in the value chain
Utilise available
renewable energy in
the operations
Chose Community
intervention to
generate carbon and
water offsets
Offsetting emissions
through external
projects/purchases

19. Value chain improvements
• M&M FES has 600 dealers and 600 suppliers in the value chain.
• An energy audit of these would enable M&M FES and the value chain partner to
understand the opportunities to implement operations improvement and energy
efficiency measures to reduce carbon footprint. Again if these measures are
bundled and developed into a carbon Project - these measures would be verified
and accounted for, and carbon credits would be received.
• Value chain improvements viz. EE lighting systems, optimizing contract demand,
specific energy optimisation., logistics improvements etc…
Assumption: If 10% of the suppliers and dealers at the upper end were targeted
and minimum improvements were considered then 120 * 100= 12000 t Co2 will
be generated annually for 10 years. However detailed study will need to be
undertaken for the same

20. Roadmap to carbon/water neutrality
Inclusion of carbon and
water positive
businesses in the
portfolio
Generate carbon and
water reduction in the
value chain
Utilise available renewable energy in
the operations
Chose Community
intervention to
generate carbon and
water offsets
Offsetting emissions
through external
projects/purchases

21. Green Power Sourcing
Plant F12 F13 FY14 % switch
to green
power
Replacement
through green
power (kwh)
Green power
(Mwh)
Emission
Reductions
(tCO2e)
Kandivali 3,91,33,140 2,94,07,080 3,14,65,576 74% 2,32,49,062 23,249 21,157
Nagpur 1,39,40,446 1,80,60,317 1,93,24,539 74% 1,42,94,086 14,294 13,008
Rudrapur 69,02,175 63,97,790 68,45,635 50% 34,22,818 3,423 3,115
Jaipur 10,43,778 10,14,259 10,85,257 30% 3,25,577 326 296
Swaraj 1 1,66,05,000 1,28,91,100 1,37,93,477 50% 68,96,739 6,897 6,276
Swaraj2 1,37,93,700 1,45,61,800 1,55,81,126 50% 77,90,563 7,791 7,089
Total 9,14,18,239 8,23,32,346 8,80,95,610 5,59,78,845 55,979 50,941

22. Roadmap to carbon/water neutrality
Inclusion of carbon and
water positive
businesses in the
portfolio
Generate carbon and
water reduction in the
value chain
Utilise available
renewable energy in
the operations
Chose Community intervention to
generate carbon and water offsets
Offsetting emissions
through external
projects/purchases

23. Other CSR -ESOP opportunities for generating
GHG ERS
The Clean Energy Clean water Campaign for rural villages (UNFCCC- PoA
• Deploying energy efficient cook-stoves, zero energy water purifiers and CFLs to
rural households to meet energy and water needs

24. Community Development GHG ER opportunities
Opp
Cost /unit Offsets
Cost of
offsets
Community
benefits
Ease of
Implementation
Scale
INR tCO2 INR Complexity Time Units
Offsets
(CERs)
Zero/low
energy Water
Purifiers
2200 10 220
health,
avoided
deforestation
Easy 1 year 5000 10,000
EE Cook
Stove
2200 10 220
health,
avoided
deforestation
Easy 1 year 5,000 10,000
Investment of INR 2.5 crores(total) in the years 2014 and 15 , can generate 20,000CERs
during the years 2017-21 . Annual operating costs will be 40.0 lacs per year.

25. FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
TCO2(RE
purchase
accounted -
FY15 onwards)
104926 87761 92149 69112 69112 65657 67212 66512 66827
Micro
irrigation
9261 11113 13336 16003 19204 23044
Watershed 20000 25000 35000 40000 40000 40000
Land mgmt 4000 4000 4400 5500 6600 7920
Total offsets 33261 40113 52736 61503 65804 70964
RE purchase*(
accounted in
emissions cal. 27645 27645 31100 29545 30245 29930 30072
Value Chain
Imp.
12000 12000 12000 12000 12000
CSR 20000 20000 20000 20000 20000 20000
Surplus
Credits
-15851 3001 19079 26291 31292 36137
Neutrality Achieved Achieved Achieved Achieved Achieved
Suggested Roadmap ( with RE accounted for)

26. Summary
The entity through climate neutral practice
achieved the following:
 Demonstrated Social Responsibility
 Prepared for emerging carbon constraints
 Improved Energy and Cost efficiencies in operations and
supply chain
 Improved relationship with the suppliers and community
 Future proofed its business portfolio

27. Climate.
Value.
Delivered.