MOVING TOWARDS NET ZERO

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. – United Nations

The above-mentioned concept has guided all organizations that develop products as sustainability becomes a priority. In the case of lubricant/grease manufacturing and marketing organizations, it is important for technology and product management teams across the board to keep sustainability in mind as it comes under scrutiny from governments, original equipment manufacturers and consumers.

To measure sustainability profiles, lubricant/grease formulators must perform life cycle assessments to ensure products are being sourced, produced, and handled in a responsible and efficient manner that minimizes the carbon footprint while preserving and protecting natural resources.

Sustainable manufacturing is the creation of manufactured products through economically-sound processes that minimize negative environmental impacts while conserving energy and natural resources.

To help delineate direct and indirect emission sources, improve transparency, and provide utility for different types of organizations and different types of climate policies and business goals, three “Scopes” (Scope 1, Scope 2, and Scope 3) are defined for GHG (Green House Gases) accounting and reporting purposes. Organizations shall separately account for and report on Scopes 1 and 2 at a minimum.

Scope 1 Direct GHG emissions occur from sources that are owned or controlled by the organization, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. and emissions from chemical production in owned or controlled process equipment.

Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by an organization. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the organization. Scope 2 emissions physically occur at the facility where electricity is consumed.

Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the organization, but occur from sources not owned or controlled by the organization. Some examples of Scope 3 activities are using products and services by end-consumers.

The lubricant/grease manufacturing and marketing organizations may aim to net zero on emissions generated by all our operations by 2050 to meet the dream of our Honourable Prime Minister Shri Narender Modi ji. One has to set the target to reduce absolute emissions by a certain year, compared to 2016 levels and prepare a roadmap to achieve net zero with regard to Scope 1 and 2 GHG emissions by adopting different measures. Some important activities which have a direct bearing on GHG emissions are listed below.

A large and growing number of manufacturers and marketing organizations are realizing substantial financial and environmental benefits from sustainable business practices. Sustainable manufacturing is the creation of manufactured products through economicallysound processes that minimize negative environmental impacts while conserving energy and natural resources. Sustainable manufacturing also enhances employee, community, and product safety. Organizations are treating “sustainability” as an important objective in their strategy and operations to increase growth and global competitiveness. This trend has reached well beyond the small niche of those who traditionally positioned themselves as “green,” and now includes many prominent businesses across many different industry sectors. In many cases, these efforts are having significant results. There are several reasons why organizations are pursuing sustainability:

• Increase operational efficiency by reducing costs and waste.

• Respond to or reach new customers and increase competitive advantage.

• Protect and strengthen brand and reputation and build public trust.

• Build long-term business viability and success

• Respond to regulatory constraints and opportunities.

Organizations move forward along the path to sustainability by improving performance and reducing their resource footprint. Ways that organizations progress further on the path to sustainability include:

• Address sustainability in a coordinated, integrated, and formal manner, rather than in an adhoc, unconnected and informal manner.

• Focus on increased competitiveness and revenues rather than primarily focusing on cost-cutting, risk reduction, and improved efficiency.

• Use innovation, scenario planning, and strategic analysis to go beyond compliance.

• Integrate sustainability across business functions

• Focus more on the long term.

• Work collaboratively with external stakeholders.

• Identify, calculate, reduce, and mitigate the GHG emission under Scope 1 and 2 through one or more following measures:

• Energy efficiency in operations using low-carbon energy resources and renewable energies.

• Using technologies for carbon offset and removal from the atmosphere.

• Improving the machine operations and making them. energy efficient and reducing machine downtime.

• Reduce the generation of waste and recycling of waste material.

• Use recycled/reclaimed base stocks.

• Use biodegradable/renewable raw materials for production.

• Use real-time oil condition monitoring.

• Use virtual assistant for quick service and improving the uptime of machines etc.

• Develop and market lubricants and greases with low carbon/renewable raw materials for reducing life cycle emission of a particular product and get benefit in Scope 3.

• Develop and market fuel/energy efficient automotive/industrial lubricants and greases for reducing consumption of fuel/energy resources and overall reduction in carbon emission under Scope 3.

By adopting above methodology, lubricant / grease manufacturing and marketing organizations will be moving towards sustainable future and achieve NET ZERO status in next 20 to 30 years.

The basic feature of lubricating grease is sustainability, through reduced friction enabling energy savings as well as protecting and extending lifetime of mechanical elements that contribute to reduction of raw material consumption. Now our industry must advance our sustainability agenda – see the change and be the change!

JOHAN STURESON CEO / Managing Director Axel Christiernsson International AB Sweden

Lubrication Industry’s Role in Combating Global Warming