Promising 'green' perspectives

The new world becoming increasingly sensitive to environment-friendly products and businesses, alarms the Indian Inc. to re-visualize and integrate "environment" in the core process. Successful businesses around the world which strengthened their environmental domain to ensure sustainable and long-run businesses, convey that Indian industries' concept of less important environment management systems needs to be overhauled. We have a cherished dream of "Made in India", it would make more sense if it is sustainable, responsible and ethical.

The state of the environment is at a threshold level — almost every single day reminds us nowadays. Multiple factors alter environmental balance which in turn affects us — industrial operation related stress and pollution are prime to all. Industries altogether are the biggest contributor to local environmental issues as well as global climate change. Being a fast-developing nation, industrial pollution is one of the most significant components of India's environmental problems as well which is in the hands of the environment management teams employed in the industries. Although it's still considered a burden by the majority, managing the environment is not merely a compliance concern for industries. Its criticality is increasingly being recognised but the improvement is much limited to biggies only, while the majority, generally comprising standalone, middle-scale and small-scale industries, are yet to accept this reality to date. The business entities which have adopted the environment as an integral business process component, earn social acceptance, reputation and customers, and therefore, better business. The roots of the success come from the environment management infrastructure in the industry, capacity building of personnel, innovation and actions beyond compliance and certainly, the management's approach on the top. Business-as-usual environment management is not sustainable. Industries with the least focus on environment management — lack of a proper team, skill development, infrastructure and management's approach — are destined to have poor performances both commercially and environmentally, poor compliance and a not-so-good reputation among the local community and customers. It's not true that higher business growth leads to higher environmental degradation; its decoupling is a must for a long-term sustainable business scenario. It mustn't be forgotten that better environmental performance often drives overall excellence.

HOW INDUSTRY MANAGES?

Typically, the industry has a separate team to look after the environment, or often integrated with health and safety works. The plant-level environment team has a key role in managing the plant-level environmental job — compliance as well as to convince the promoter for any kind of investment related to it. Those which have a group of industries, often constitute a central team at the corporate level which coordinates with all plant-level teams and takes care of the board of directors, management level approvals and investment clearance tasks. In any case, the environment department is considered a not-so-important entity as compared to the operation team which often oversees the issues of the environment department, especially in standalone smaller industries. This kind of work arrangement is often seen with industries that create an environment department just for namesake, with one or couple of environment personnel for regulatory compliance roles, and therefore, generally appear with poor environmental performance. The industries with a bigger environment team, also suffer from similar issues if their outreach remains limited to plant-level operational teams but not to management or the promoter. Those with corporate or central level teams such as in companies like Tata Steel, Tata Power, Reliance Industries, SAIL, NTPC and JSW Steel etc. often do well mainly because the plant-level issues and investment decisions have better outreach to the board of directors and management for discussion and decision-making. Even many standalone industries manage the environment through a proper environment management team and perform well. One crucial factor for the better environmental performance of an industry remains evident – the responsible and positive attitude of management(s) and promoter(s) towards the environment. Such an environmentally excelling industry readily owns an environmental team comprising skilled professionals, proper infrastructure, training, internal assessment, research and innovation system.

LIFE CYCLE APPROACH OF BUSINESS

Any business model or initiative which doesn't fit into the commercial equation of the business — the profit-making — can't succeed. It's important to change the way the industries think and do business as usual. A thought change from the end of pipe approach i.e. focusing on production only, to the life cycle approach where the entire product cycle and the system remains important, is the right way. The life cycle approach plays a key role in long-term sustainability and excellence at par with best practices followed by peers and best global companies.

Carrying a life cycle analysis of operations can give many surprising revelations to industries. Analysing how best the raw materials can be sourced, allows exploring economical and environment-friendly material sourcing options whereas analysing the operation opens options to efficient and less energy, water and pollution-intensive processing technologies. Similarly, the waste generated at the end can be recycled and reused for various purposes and reduce pollution potential at the end. Minimising pollution is not only for compliance, it saves costly raw materials to the industry. The life cycle approach gives industries a better hold of its operation, scope for corrective actions, opportunities for by-product and waste-based commercial production, optimization of pollution control systems and best use of infrastructure and manpower. Yes, practising this needs a skilled and trained team but, undoubtedly, it's the right way of business and environmental excellence followed by renowned companies worldwide. It's worthwhile to see their sustainability reports.

IDEAL SYSTEM FOR ENVIRONMENT MANAGEMENT

A separate environment management team that consists of technical and non-technical professionals with relevant skills, preferably in permanent or long-term contractual roles, is needed to manage the plant's environmental chores. The head of the team shall have the authority to make decisions on general environmental issues and moderate investments needed in emergencies. At the same time, it should be able to bring the crucial environmental and sustainability discussions to the board of directors and top management for quicker decisions. In the majority of the cases where plant-level environmental issues are not conveyed and discussed at the top level, don't get attention and ultimately become a pain in the neck. It's therefore very meaningful to have dedicated personnel(s) at the corporate level, depending upon the affordability of the company.

The team members need to be trained and updated timely for new technologies and regulations. They should be encouraged to carry in-house research and innovation towards sustainable production, better pollution control and occupational health and safety, wherever relevant. A periodic review of the environment department must be carried at the management level to keep the plant's performance streamlined and effective. Similarly, periodic internal environment audit, streamlined with standard guidelines, besides mandatory external audit requirement, is the best practice to be followed. Recommendations of the internal and external audits must be followed and reviewed. Audits and reviews are effective tools for self-assessment and performance drive.

TRANSPARENCY AND RECOGNITION WORKS

Publishing environmental and sustainability reports for transparency is one of the best environmental practices. It not only helps the industry to set better goals, it brings both commercial and reputational recognition from the stakeholders. In India, very few industries publish such reports. Except for the leading companies, the majority of those who publish, keep reports' access restricted. With the regulatory digitalization of pollution monitoring and reporting in India, at least, the pollution data is accessible to the regulator. However, it's not accessible to the public at large. Missing transparency leaves enough scope for malpractices. Transparency plays an important role in discouraging industry from any manipulation and push for better performance.

Hard-earned awards and certifications add stars to the reputation of the industry. The prestigious awards for excellence in environmental protection, energy conservation, water conservation and social performance are encouraging. Similarly, certifications such as ISO 14001, ISO 18001, ISO 50001, and SA8001 indicate the industry's efforts towards improvement. Awards and certificates, if just on paper, are detrimental. These must reflect on the ground, which in many cases are not found. Industry management and promoters should encourage the environment team to perform and achieve. It's best to periodically review the practices and performance during internal and external audits and management review meetings. It's a common practice that industries adopt policies for environment, health and safety both at the plant and corporate level. It's a driving force towards an ideal system.

CO-EXISTENCE WITH COMMUNITY

The local community near an industry shall be seen as an important stakeholder. People offer their permanent asset "land", share water and other natural resources with industries, surely in return for money. They are bound to face pollution and other stresses from the industrial operations, therefore, it's critical to have a cordial relation with them. Since the local authorities play a watchdog role and raise pollution complaints, which are often true, industries often brand them as opponents. This derails a cordial relation between them. It's tough but possible to build a good relationship with the local community for a cordial working environment. Co-existence is the ultimate solution. Many Indian industries prove this with their good reputation among the local community. One of the classic examples for involving the local community is the practice of farm forestry in the Indian pulp and paper sector. In this win-win arrangement, the local community grows plantation and woods and the industry buys them as raw material for processing; the industry gets assured raw material without harming the environment by deforestation and the local community gets livelihood.

In general, setting up a public relation department in the industry to address local community-related matters and involving into major decisions which may affect them, is an effective system. Also, providing facilities to the local communities under corporate social responsibility (CSR) which has long-term livelihood benefits and helps in the upliftment of the society makes much difference.

MANAGEMENT'S ATTITUDE DRIVES

Management and promoters do drive the performance and culture in the industry, both at the corporate and plant level. The attitude of those on the top, therefore, matters a lot. In most cases, it's the business that is given importance by the top management whereas environmental obligations remain a burden. This culture flows in at the plant level where the team tries to cut short the expenditure needed for a better environment, health and safety, to show savings. Non-compliance cases, public complaints and unfortunate events are common in these cases. There are performers as well, but only a handful, who have adopted a responsible and sustainable business culture at the corporate and plant level. And only a few of them are blessed with the management who takes interest in sustainable business practices. This visionary approach guides them in the long run.

It needs to be learnt by most of the Indian industries that the new world is becoming more and more sensible towards sustainable and responsible business practices. Growing customer alignment towards sustainable sourcing, production and responsible and ethical businesses, has driven the leading brands to strategize business priorities. Companies adopting sustainable raw material sourcing, cleaner technology, cleaner energy, net-zero emission pledge, emission reduction goals and social responsibility commitments are growing worldwide. The environment is not anymore only a compliance task, but an integral part of a successful business process which creates a need for rethinking and re-strategizing the conventional environmental management system. It's the future. The Indian industries need to understand this, better, well in time.

Most certainly, suitable and encouraging policies and regulations with time-bound goals, are, therefore, of paramount importance. Government's support for the facilitation of technology transfer, and knowledge sharing, encouraging sustainable consumption and production, promoting research and innovation, promoting recycle and reuse practices, push for public-private partnership, efforts for mass awareness and incentives for performers are needed. "Made in India" is our most cherished dream, but it would make true sense if it is sustainable, ethical and responsible. Excelling through sustainable "Made in India" has the potential to help the country achieve important sustainable development goals such as affordable clean energy, climate action, sustainable cities and communities, responsible consumption and production, decent work and economic growth, protection and restoration of land and water ecosystems and eradication of poverty and hunger.

The writer is an environmental research & advocacy professional. Views expressed are personal